HMS (HMSY) 10-K 6 Jun 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2016	May 31, 2017	Jun. 30, 2016
Document Information [Line Items]
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)		83,909,845
Entity Public Float			$ 1.5
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 175,999	$ 145,610
Accounts receivable, net of allowance of $10,772 and $11,464, at December 31, 2016 and 2015, respectively	173,582	169,146
Prepaid expenses	13,699	11,261
Income tax receivable	3,354
Other current assets	1,001	3,051
Total current assets	367,635	329,068
Property and equipment, net	92,167	96,551
Goodwill	379,716	361,468
Intangible assets, net	37,797	54,308
Deferred financing costs, net	2,790	4,873
Other assets	2,650	4,329
Total assets	882,755	850,597
Current liabilities:
Accounts payable, accrued expenses and other liabilities	59,402	51,661
Estimated liability for appeals	30,755	33,078
Income taxes payable		3,873
Total current liabilities	90,157	88,612
Long-term liabilities:
Revolving credit facility	197,796	197,796
Net deferred tax liabilities	22,717	30,961
Deferred rent	5,427	6,006
Other liabilities	10,048	2,520
Total long-term liabilities	235,988	237,283
Total liabilities	326,145	325,895
Commitments and contingencies (Note 12)
Shareholders' equity:
Preferred stock -- $0.01 par value; 5,000,000 shares authorized; none issued	0	0
Common stock -- $0.01 par value; 175,000,000 shares authorized; 95,966,852 shares issued and 83,552,774 shares outstanding at December 31, 2016; 95,263,461 shares issued and 83,989,715 shares outstanding at December 31, 2015	959	952
Capital in excess of par value	345,025	330,290
Retained earnings	326,110	288,474
Treasury stock, at cost -- 12,414,078 shares at December 31, 2016 and 11,273,746 shares December 31, 2015	(115,484)	(95,014)
Total shareholders' equity	556,610	524,702
Total liabilities and shareholders' equity	$ 882,755	$ 850,597

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts receivable, allowance for doubtful accounts	$ 10,772	$ 11,464
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)	175,000,000	175,000,000
Common stock, shares issued (in shares)	95,966,852	95,263,461
Common stock, shares outstanding (in shares)	83,552,774	83,989,715
Treasury cost, shares (in shares)	12,414,078	11,273,746

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue	$ 489,720	$ 474,216	$ 443,225
Cost of services:
Compensation	189,271	178,272	181,273
Data processing	37,337	40,915	39,661
Occupancy	14,000	15,766	16,950
Direct project expenses	46,254	51,527	36,866
Other operating expenses	27,778	28,895	24,588
Amortization of acquisition related software and intangible assets	28,030	28,148	28,612
Total cost of services	342,670	343,523	327,950
Selling, general and administrative expenses	89,381	83,121	81,071
Total operating expenses	432,051	426,644	409,021
Operating income	57,669	47,572	34,204
Interest expense	(8,519)	(7,812)	(7,931)
Interest income	321	49	57
Income before income taxes	49,471	39,809	26,330
Income tax expense	11,835	15,282	12,383
Net income	$ 37,636	$ 24,527	$ 13,947
Basic income per common share:
Net income (loss) per common share - basic (in dollars per share)	$ 0.45	$ 0.28	$ 0.16
Diluted income per common share:
Net income (loss) per common share - diluted (in dollars per share)	$ 0.43	$ 0.28	$ 0.16
Weighted average shares:
Basic (in shares)	84,221	87,881	87,673
Diluted (in shares)	86,987	88,361	88,164

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, 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 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)
Balance (in shares) at Dec. 31, 2014	94,511,444			6,526,305
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 (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 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)
Balance (in shares) at Dec. 31, 2015	95,263,461			11,273,746
Net income			37,636		37,636
Stock-based compensation expense		13,277			13,277
Total Number of Shares Purchased (in shares)				1,140,332
Purchase of treasury stock (in shares)				1,140,332
Purchase of treasury stock				$ (20,470)	$ (20,470)
Exercise of stock options (in shares)	510,512				510,512
Exercise of stock options	$ 5	2,935			$ 2,940
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares)	192,879
Vesting of restricted stock awards and units, net of shares withheld for employee tax	$ 2	(1,477)			(1,475)
Balance at Dec. 31, 2016	$ 959	$ 345,025	$ 326,110	$ (115,484)	$ 556,610
Balance (in shares) at Dec. 31, 2016	95,966,852			12,414,078

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net income	$ 37,636	$ 24,527	$ 13,947
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	24,882	30,328	32,864
Amortization of intangible assets	20,164	20,270	20,734
Amortization of deferred financing costs	2,083	2,084	2,084
Stock-based compensation expense	13,277	14,297	13,356
Deferred income taxes	(7,368)	(14,020)	(12,290)
(Gain) / Loss on disposal of assets	(948)	84	219
Change in fair value of contingent consideration			(517)
Changes in operating assets and liabilities, net of the effect of acquisitions:
Accounts receivable	(3,554)	(12,045)	14,625
Prepaid expenses	(2,399)	549	1,132
Prepaid income taxes		6,711	3,445
Other current assets	2,066	(412)	(2,150)
Other assets	234	10	121
Income taxes receivable / (payable)	(7,227)	3,873
Accounts payable, accrued expenses and other liabilities	12,116	(250)	18,039
Estimated liability for appeals	(2,323)	(3,721)	(5,053)
Net cash provided by operating activities	88,639	72,285	100,556
Investing activities:
Acquisition of a business, net of cash acquired	(20,678)
Proceeds from sale of cost basis investment	2,496
Purchases of land, property and equipment	(13,703)	(8,620)	(22,687)
Investment in capitalized software	(7,316)	(3,197)	(3,514)
Net cash used in investing activities	(39,201)	(11,817)	(26,201)
Financing activities:
Repayment of revolving credit facility			(35,000)
Proceeds from Stock Options Exercised	2,940	4,187	4,110
Payments of tax withholdings on behalf of employees for net-share settlement for stock-based compensation	(1,475)	(1,029)	(1,658)
Payments on capital lease obligations	(44)	(1,132)	(1,629)
Payments on contingent consideration			(428)
Purchases of treasury stock	(20,470)	(50,000)
Net cash used in financing activities	(19,049)	(47,974)	(34,605)
Net increase in cash and cash equivalents	30,389	12,494	39,750
Cash and cash equivalents at beginning of year	145,610	133,116	93,366
Cash and cash equivalents at end of year	175,999	145,610	133,116
Supplemental disclosure of cash flow information:
Cash paid for income taxes	20,326	22,878	21,144
Cash paid for interest	6,196	5,694	4,458
Supplemental disclosure of noncash activities:
Change in balance of accrued property and equipment purchases	$ 684	$ 729	$ 1,610

Note 1 - Business and Summary o

Note 1 - Business and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	1. Business and Summary of Significant Accounting Policies (a) Business HMS is a leading provider of cost containment solutions in the U.S. healthcare marketplace. Using innovative technology as well as extensive data services and powerful analytics, the Company delivers coordination of benefits, payment integrity and care management solutions through its operating subsidiaries to help healthcare payers improve performance and outcomes. The Company is managed and operates as one (b) Summary of Significant Accounting Policies (i) Principles of Consolidation The consolidated financial statements include the Company’s accounts and transactions and those of the Company’s wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. (ii) 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. (iii) Reclassifications In the 2015 2016 (iv) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three ( v) Concentration of Credit Risk 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 and cash equivalents in cash depository accounts with large financial institutions with a minimum credit rating of A1/P1 $250,000 not not 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 (vi) 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 which is typically five not Estimated useful lives are as follows: Property and Equipment Useful Life Equipment 2 - 3 Leasehold improvements 3 - 10 Furniture and fixtures 3 - 5 Capitalized software 3 - 10 Building and building improvements up to 39.5 Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not December 31, 2016, 2015 2014. (vii) Intangible assets The Company records assets acquired and liabilities assumed in a business combination based upon their acquisition date fair values. In most instances there is not not may Intangible Assets Useful Life Customer relationships 5 - 10 Restrictive covenants 3 - 7 Trade name 3 - 5 Intellectual property 5 Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not December 31, 2016, 2015 2014. (viii) Goodwill Goodwill is the excess of acquisition costs over the fair values of assets and liabilities of acquired businesses. During the measurement period, which is up to one may Goodwill is subject to a periodic assessment for impairment. HMS assesses goodwill for impairment on an annual basis as of June 30th not not not not two not first June 30, 2016 no no December 31, 2016, 2015 2014. (ix) 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 or expense in the period that includes the enactment date. A valuation allowance is provided against deferred tax assets to the extent their realization is not not. no not ( x 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. In addition, some of the Company’s contracts may not may (xi) Estimated Liability for Appeals Under the Company’s Recovery Audit Contractor (“RAC”) contract with Centers for Medicare and Medicaid Services (“CMS”), the Medicaid RAC contracts with various states, and similar contracts for commercial health plan customers, HMS recognizes revenue when findings are sent to the customer for offset against future claims payments. Providers have the right to appeal a finding and may first second third third first second $30.8 $33.1 December 31, 2016 2015, $17.3 $15.9 $11.1 $12.8 may (xii) Expense Classifications HMS cost of services is presented in the categories set forth below. Each category within cost of services excludes expenses relating to Selling, general and administrative expenses (“SG&A”) functions, which are presented separately as a component of total operating costs. A description of the primary expenses included in each category is as follows: Cost of Services: § Compensation: Salary, fringe benefits, bonus and stock-based compensation. § Data processing: Hardware, software and data communication costs. § Occupancy: Rent, utilities, depreciation, office equipment and repair and maintenance costs. § Direct project expense: Variable costs incurred from third § Other operating expense: Professional fees, temporary staffing, travel and entertainment, insurance and local and property tax costs. § Amortization of acquisition related software and intangible assets: Amortization of the cost of acquisition related software and intangible assets. SG&A: § Expenses related to general management, marketing and administration activities. (xiii) Estimating Valuation Allowances and Accrued Liabilities The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reported period. In particular, management must make estimates of the probability of collecting accounts receivable. When evaluating the adequacy of the accounts receivable allowance, management reviews the accounts receivables based on an analysis of historical revenue adjustments, bad debts, customer concentrations, customer credit-worthiness, current economic trends and changes in customer payment terms. As of December 31, 2016 2015, $173.6 $169.1 $10.8 $11.5 (xiv) Stock-Based Compensation Long-Term Incentive Award Plans The Company grants equity-based compensation awards, including stock options and restricted stock units, to HMS employees and non-employee directors under the 2016 June 23, 2016. 2016 2006 2011 2016 2016 one four 2016 may not may not ten Stock-Based Compensation Expense For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense equal to the grant date fair value of the award on a straight-line basis over the requisite service period, which is generally the vesting term. For the performance-based awards subject to market conditions, the Company recognizes stock-based compensation expense equal to the grant date fair value of the stock options on a straight-line basis over the requisite service period. The fair value of each option grant with service-based conditions is estimated using the Black-Scholes pricing model. The fair value of each option grant with market-based conditions is estimated using a Monte Carlo simulation model. The fair value of each restricted stock unit is calculated based on the closing sale price of the Company’s common stock on the grant date. The determination of the fair value of the stock options on the grant date using the models above is affected by the Company’s stock price, as well as assumptions regarding a number of complex and subjective variables. Certain key variables include: the Company’s expected stock price volatility over the expected term of the awards; a risk-free interest rate; and any expected dividends. The Company estimates stock price volatility based on the historical volatility of the Company’s common stock and estimates the expected term of the awards based on the Company’s historical option exercises for similar types of stock option awards. The assumed risk-free interest rate is based on the yield on the measurement date of a zero not zero (xv) Fair Value of Financial Instruments Financial instruments are categorized into a three three 1 3 not § 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 Financial 3 4 8. (xvi) 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. (xvii) Contingencies From time to time, HMS is involved in legal proceedings in the ordinary course of business. The Company assesses the likelihood of any adverse judgments or outcomes to these contingencies as well as potential ranges or probable losses and establish reserves accordingly. HMS records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonable estimated. Significant judgment is required to determine both probability and the estimated amount. HMS reviews these provisions at least quarterly and adjusts the provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and updated information. Litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond the Company’s control. The amount of reserves required may (xviii) Recent Accounting Guidance Recently Adopted Accounting Guidance In April 2015, 2015 05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350 40 2015 05” 2015 05 not 2015 05 December 15, 2015, not In November 2015, 2015 17, Income Taxes (Topic 740 2015 17” 2015 17 2015 17, December 15, 2016, fourth 2016. $7.5 December 31, 2015. In March 2016, No. 2016 09, Compensation – Stock Compensation (Topic 718 2016 09” no 2016 09 December 15, 2016, fourth 2016 January 1, 2016, 2016. no January 1, 2016, $1.6 $1.8 December 31, 2015 2014, $1.9 December 31, 2016. no Recent Accounting Guidance Not In May 2014, 2014 09, 606 2014 09” 2014 09 December 15, 2017, not January 1, 2018. two third 2017. In February 2016, 2016 02, Leases (Topic 842 2016 02” 2016 02 2016 02 December 15, 2018 not In August 2016, No. 2016 15, Statements of Cash Flows (Topic 230 2016 15” . not eight December 15, 2017, In January 2017, No. 2017 01, Business Combinations (Topic 805 2017 01” 2017 01 December 15, 2017, In January 2017, No. 2017 04, Goodwill and Other (Topic 350 2017 04” 2 2 1 2 not December 15, 2019. January 1, 2017. Other new pronouncements issued but not December 31, 2016, not

Note 2 - Property and Equipment

Note 2 - Property and Equipment	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	2. Property and Equipment Property and equipment consisted of the following ( in thousands December 31, 2016 2015 Equipment $ 94,345 $ 90,496 Leasehold improvements 8,637 8,512 Building 8,624 8,624 Building improvements 12,671 11,367 Land 2,769 2,769 Furniture and fixtures 10,728 10,858 Capitalized software 110,696 104,266 248,470 236,892 Less: accumulated depreciation and amortization (156,303 ) (140,341 ) Property and equipment, net 92,167 96,551 December 31, (in millions) 2016 2015 2014 Depreciation and amortization expense related to property and equipment $ 24.9 $ 30.3 $ 32.9 Net capital leases included as part of equipment were approximately $4,000 $51,000 December 31, 2016 2015, $6.1 $6.0 December 31, 2016 2015. December 31, 2016, 2015 2014 $40,000, $1.2 $1.6

Note 3 - Intangible Assets

Note 3 - Intangible Assets	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	3. Intangible Assets Intangible assets consisted of the following ( in thousands Gross Accumulated Net Carrying December 31, 2016 Customer relationships $ 103,090 $ (71,914 ) $ 31,176 Trade name 15,936 (11,393 ) 4,543 Intellectual property 2,100 (140 ) 1,960 Restrictive covenants 133 (15 ) 118 Total $ 121,259 $ (83,462 ) $ 37,797 December 31, 2015 Customer relationships $ 101,806 $ (57,497 ) $ 44,309 Trade name 17,000 (10,221 ) 6,779 Restrictive covenants 16,800 (13,580 ) 3,220 Total $ 135,606 $ (81,298 ) $ 54,308 In 2016, $16.8 $1.2 Amortization expense of intangible assets is expected to approximate the following ( in thousands Year ending December 31, 2017 $ 17,306 2018 16,685 2019 2,245 2020 791 2021 463 Thereafter 307 For the years ended December 31, 2016, 2015 2014, $20.2 $20.3 $20.7

Note 4 - Acquisitions

Note 4 - Acquisitions	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Business Combination Disclosure [Text Block]	4. Acquisitions On September 2, 2016, $24.2 $21. 3 The Company allocated the purchase price, net of cash acquired, to a) at their acquisition date fair values, the following tangible assets: net deferred tax assets of $0.9 $0. 9 $2.1 $1.3 $0.1 $0.1 $18.2 not not $12.0 2017, 2018, 2019, fourth 2016, $1.1 $0.7 $0.2 may The acquisition was not December 31, 2015 not September 2, 2016 There were no December 31, 2015 2014.

Note 5 - Accounts Payable, Accr

Note 5 - Accounts Payable, Accrued Expenses and Other Liabilities	12 Months Ended
	Dec. 31, 2016
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 consisted of the following ( in thousands December 31, December 31, Accounts payable, trade $ 13,847 $ 7,790 Accrued compensation and other 28,507 21,948 Accrued operating expenses 17,048 21,923 Total accounts payable, accrued expenses and other liabilities $ 59,402 $ 51,661

Note 6 - Income Taxes

Note 6 - Income Taxes	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	6. Income Taxes Income tax expense is as follows ( in thousands December 31, 2016 2015 2014 Current tax expense: Federal $ 16,274 $ 25,852 $ 20,244 State 2,929 3,450 4,429 Total current tax expense: 19,203 29,302 24,673 Deferred tax expense (benefit): Federal (7,115 ) (12,571 ) (12,421 ) State (253 ) (1,449 ) 131 Total deferred tax benefit: (7,368 ) (14,020 ) (12,290 ) Total income tax expense $ 11,835 $ 15,282 $ 12,383 A reconciliation of the income tax expense calculated using the applicable federal statutory rate to the actual income tax expense is as follows ( in thousands December 31, 2016 % 2015 % 2014 % Computed at federal statutory rate $ 17,315 35.0 $ 13,934 35.0 $ 9,215 35.0 State and local tax expense, net of federal benefit 2,448 5.0 1,038 2.6 2,973 11.3 Net perm deduction and credit tax benefits from prior years (6,213 ) (12.6 ) - - - - Net perm deduction and credit tax benefits from current year (1,509 ) (3.1 ) - - - - Other, net (206 ) (0.4 ) 310 0.8 195 0.7 Total income tax expense $ 11,835 23.9 $ 15,282 38.4 $ 12,383 47.0 The Company’s effective tax rate decreased to 23.9% December 31, 2016 38.4% December 31, 2015, 199 As a result of an analysis performed during 2016 41 199 199. third 2016, 199 December 31, 2016 $2.2 $5.7 199 2012 2016. 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 are as follows (in thousands): December 31, 2016 2015 Deferred tax assets: Stock-based compensation $ 10,373 $ 9,059 Goodwill and intangible assets 10,711 10,449 Allowance for doubtful accounts 4,108 1,766 Deferred rent 1,120 1,119 Tenant improvements 1,226 1,392 Estimated liability for appeals 11,596 - Net operating loss carry-forwards 2,141 113 Property and equipment 79 - Accrued expenses and other 7,811 6,298 Total deferred tax assets 49,165 30,196 Deferred tax liabilities: Goodwill and intangible assets 52,729 56,790 Section 481(a) adjustment 14,757 - Property and equipment - 894 Capitalized software cost 4,396 3,473 Total deferred tax liabilities 71,882 61,157 Total net deferred tax liabilities $ 22,717 $ 30,961 Included in Other liabilities on the Consolidated Balance Sheets, are the total amount of unrecognized tax benefits of approximately $7.4 $1.3 December 31, 2016 2015, $0.6 $0.4 December 31, 2016 2015, December 31, 2016, 2015 2014 $0.2 $0.6 $0.4 may $0.9 2017, A reconciliation of the beginning and ending amounts of unrecognized tax benefits are as follows (in thousands) December 31, 2016 2015 Unrecognized tax benefits at January 1 $ 1,329 $ 1,329 Additions for tax positions taken during prior periods 763 565 Additions for tax positions taken during current period including amended prior years 5,931 - Reductions related to the expiration of statutes of limitations (590 ) (565 ) Unrecognized tax benefits at December 31 $ 7,433 $ 1,329 The Company increased the provision for unrecognized tax benefits by $5.9 December 31, 2016, 199 At December 31, 2016, $13.8 not 2020 2036.The no 2012. 2013 2014.

Note 7 - Credit Agreement

Note 7 - Credit Agreement	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	7. Credit Agreement During the years ended December 31, 2016 2015, no $197.8 May 2018. The Credit Agreement provides for an initial $500 one not $75 not $25 no 2.5:1.0. 100% The Credit Agreement requires the Company to comply with certain principal financial covenants and other covenants, including a maximum consolidated leverage ratio reducing from 3.50:1.00 3.25:1.00 five 3.00:1.00. 14 8. 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% 2.25% b) a base rate (which is equal to the greatest of (i) Citibank’s prime rate, (ii) the federal funds effective rate plus 0.50% one 1.00% 0.50% 1.25% HMS pays an unused commitment fee on the revolving credit facility during the term of the Credit Agreement ranging from 0.375% 0.50% Interest expense and the commitment fees on the unused portion of the Company’s revolving credit facility are as follows ( in thousands December 31, 2016 2015 2014 Interest expense $ 4,837 $ 4,117 $ 4,186 Commitment fees $ 1,518 $ 1,513 $ 1,465 At December 31, 2016 2015, $2.8 $4.9 $2.1 December 31, 2016, 2015 2014, As part of a contractual agreement with a customer, the Company has an outstanding irrevocable letter of credit for $3.0 May 1, 2017, April 26, 2018.

Note 8 - Equity

Note 8 - Equity	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	8. Equity (a) Share Repurchase On July 30, 2015, $75 July 30, 2017, may may 10b5 1 December 31, 2016, $20 10b5 1 Following are the Company’s monthly stock repurchases for the fourth 2016, Period Total Number of Average Total Number of (1) Approximate October 1, 2016 to October 31, 2016 — $ — — $ — November 1, 2016 to November 30, 2016 570,717 17.61 570,717 15,000,000 December 1, 2016 to December 31, 2016 569,615 18.25 569,615 5,000,000 October 1, 2016 to December 31, 2016 1,140,332 $ 17.93 1,140,332 $ 5,000,000 ( 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 may December 31, 2016, no

Note 9 - Employee Benefit Plan

Note 9 - Employee Benefit Plan	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Compensation and Employee Benefit Plans, Other than Share-based Compensation [Text Block]	9. Employee Benefit Plan The Company sponsors the 401 90 401 may 401 60% not 401 2016, 2015 2014 100% first 3% 50% 2% not For the years ended December 31, 2016, 2015 2014, $4.8 $4.8 $5.0 401

Note 10 - Stock-based Compensat

Note 10 - Stock-based Compensation	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	10. Stock-Based Compensation Stock-Based Compensation Expense Total stock-based compensation expense in the Company’s Consolidated Statements of Income related to the Company’s long-term incentive award plans was as follows (in thousands) December 31, 2016 2015 2014 Cost of services-compensation $ 3,805 $ 6,242 $ 5,075 Selling, general and administrative 9,472 8,055 8,280 Total $ 13,277 $ 14,297 $ 13,355 Stock Options Stock-based compensation expense related to stock options was approximately $6.9 $6.4 $7.6 December 31, 2016, 2015 2014, Presented below is a summary of stock option activity for the year ended December 31, 2016 ( in thousands except for weighted average exercise price and weighted average remaining contractual terms Shares Weighted Weighted Aggregate Outstanding at December 31, 2015 5,030 $ 17.37 Granted 1,078 14.07 Exercised (511 ) 7.03 Forfeitures (67 ) 17.76 Expired (339 ) 22.67 Outstanding at December 31, 2016 5,191 17.35 5.00 $ 12,854 Expected to vest at December 31, 2016 2,207 15.22 5.72 7,219 Exercisable at December 31, 2016 2,150 $ 20.25 4.02 $ 3,042 The weighted-average grant-date fair value per share of the stock options granted during the years ended December 31, 2016, 2015 2014 $5.55, $5.37 $7.59, December 31, 2016 2015 2014 Expected dividend yield 0 % 0 % 0 % Risk-free interest rate 1.20 % 1.54 % 1.57 % Expected volatility 44.01 % 40.62 % 38.18 % Expected life (years) 4.90 4.89 4.82 During the years ended December 31, 2016, 2015 2014, 510,512, 577,559 516,552 $2.9 $4.2 $4.1 December 31, 2016, 2015 2014 $6.3 $5.9 $6.5 As of December 31, 2016, was approximately $12.7 1.05 December 31, 2016, 2015 2014 $1.9 $1.6 $1.8 Restricted Stock Units Stock-based compensation expense related to restricted stock units was $6.4 $7.9 $5.7 December 31, 2016, 2015 2014, Presented below is a summary of restricted stock units activity for the year ended December 31, 2016 (in thousands, except for weighted average grant date fair value per unit): Number of Weighted Average Outstanding balance at December 31, 2015 1,154 $ 18.85 Granted 637 14.26 Vesting of restricted stock units, net of units withheld for taxes (193 ) 18.64 Units withheld for taxes (102 ) 18.64 Forfeitures (83 ) 16.95 Outstanding balance at December 31, 2016 1,413 $ 16.44 As of December 31, 2016, 1,231,736 remained unvested and there was approximately $14.1 0.92

Note 11 - Earnings Per Share

Note 11 - Earnings Per Share	12 Months Ended
	Dec. 31, 2016
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 (in thousands, except per share data) Years ended December 31, 2016 2015 2014 Net income $ 37,636 $ 24,527 $ 13,947 Weighted average common shares outstanding-basic 84,221 87,881 87,673 Plus: net effect of dilutive stock options and restricted common shares 2,766 480 491 Weighted average common shares outstanding-diluted 86,987 88,361 88,164 Net income per common share-basic $ 0.45 $ 0.28 $ 0.16 Net income per common share-diluted $ 0.43 $ 0.28 $ 0.16 For the years ended December 31, 2016, 2015 2014, 2,070,771, 3,480,458 2,442,628 not December 31, 2016, 2015 2014, 46,651, 305,999 90,905 not

Note 12 - Commitments and Conti

Note 12 - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	12. 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. December 31, 2016, 2015 2014 $5.0 $5.4 $6.9 $27,000, $25,000 $42,000 December 31, 2016, 2015 2014, 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 December 31 in thousands Capital Lease Payments Operating Lease Payments 2017 $ 4 $ 16,077 2018 - 6,304 2019 - 4,294 2020 - 3,815 2021 - 3,226 Thereafter - 4,852 Total 4 $ 38,568 Less: Interest - Total $ 4 (b) Litigation Dennis Demetre and Lori Lewis July 2012, second two one Kern Health Systems v. AMG, Dennis Demetre and Lori Lewis , . September 2014 not June 2016, . In January 2016, not June 22, 2016. not not Shareholder Proceedings March 3, 2017, Danahar v. HMS Holdings Corp., et al March 2, 2017 2016 10 10 December 31, 2015 10 January 1, 2016 September 30, 2016 May 19, 2017, not From time to time, HMS may not may may may 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 not .

Note 13 - Customer Concentratio

Note 13 - Customer Concentration	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	13. Customer Concentration (a) Geographic Information The Company operates within the United States. (b) Major Customers For the years ended December 31, 2016, 2015 2014 no one 10% (c) Concentration of Revenue The composition of the Company’s ten December 31, 2016, 2015 2014, ten 40.6%, 44.0% 40.1% ten 2017 2020. may may

Note 14 - Subsequent Events

Note 14 - Subsequent Events	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	14. Subsequent Events (a) Credit Agreement On March 8, 2017, No. 1 90 180 December 31, 2016. (b) Eliza Holding Corp. Acquisition On April 17, 2017, March 10, 2017 ( $172.0 75% 25% The Merger Agreement was entered into by and among the Company, Echo Acquisition Sub, Inc., a Delaware corporation and an indirect wholly owned subsidiary of the Company (the “Merger Sub”), Eliza, and Parthenon Investors III, L.P., a Delaware limited partnership, solely in its capacity as the representative for equity holders of Eliza. Under the terms of the Merger Agreement, the Merger Sub merged with and into Eliza (the “Merger”) and Eliza continued as the surviving corporation becoming an indirect wholly owned subsidiary of the Company. The Merger Agreement contains customary representations, warranties and covenants. The Merger Agreement also contains indemnification provisions that are subject to specified limitations, including recourse to a representation and warranty insurance policy for certain losses. 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, other than the events above, there are no

Note 15 - Quarterly Financial D

Note 15 - Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Quarterly Financial Information [Text Block]	15. Quarterly Financial Data (Unaudited) The table below summarizes the Company’s unaudited quarterly operating results for the last two in thousands, except per share amounts Year ended December 31, 2016 First Second Third Fourth Revenue $ 119,763 $ 123,550 $ 124,604 $ 125,590 Operating income $ 9,909 $ 16,352 $ 12,650 $ 18,758 Net income $ 4,560 $ 8,566 $ 13,508 $ 11,002 Net income per common share - basic $ 0.05 $ 0.10 $ 0.16 $ 0.14 Net income per common share - diluted $ 0.05 $ 0.10 $ 0.16 $ 0.12 Revenue, as reported $ 119,763 $ 123,550 $ 124,604 $ 125,590 Revenue, as revised $ 119,758 $ 121,512 $ 122,860 Selling, general and administrative expenses, as reported $ 22,930 $ 22,227 $ 24,875 $ 23,136 Selling, general and administrative expenses, as revised $ 22,925 $ 20,189 $ 23,131 During the fourth 2016, March 31, 2016 $5,050, June 30, 2016 $2,038,000, September 30, 2016 $1,744,244. 2016 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

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2016
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, 2016, 2015 2014 Accounts receivable allowance and Estimated liability for appeals as of December 31, 2016, 2015 2014 Accounts receivable allowance (in thousands) Balance at Provision Recoveries Charge-offs Balance at Year ended December 31, 2014 $ 15,899 12,861 (17 ) (19,384 ) $ 9,359 Year ended December 31, 2015 $ 9,359 8,046 (100 ) (5,841 ) $ 11,464 Year ended December 31, 2016 $ 11,464 21,583 108 (22,383 ) $ 10,772 Estimated liability for appeals (in thousands) Balance at Beginning of Year Provision Appeals found in providers favor Balance at End of Year Year ended December 31, 2014 $ 19,853 1,459 (1,998 ) $ 19,314 Year ended December 31, 2015 $ 19,314 2,610 (9,123 ) $ 12,801 Year ended December 31, 2016 $ 12,801 721 (2,396 ) $ 11,126 The above chart represents the CMS estimated reserve liability only. See Note 1 8.

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	(i) Principles of Consolidation The consolidated financial statements include the Company’s accounts and transactions and those of the Company’s wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	(ii) 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.
Reclassification, Policy [Policy Text Block]	(iii) Reclassifications In the 2015 2016
Cash and Cash Equivalents, Policy [Policy Text Block]	(iv) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three
Concentration Risk, Credit Risk, Policy [Policy Text Block]	( v) Concentration of Credit Risk 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 and cash equivalents in cash depository accounts with large financial institutions with a minimum credit rating of A1/P1 $250,000 not not 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
Property, Plant and Equipment, Policy [Policy Text Block]	(vi) 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 which is typically five not Estimated useful lives are as follows: Property and Equipment Useful Life Equipment 2 - 3 Leasehold improvements 3 - 10 Furniture and fixtures 3 - 5 Capitalized software 3 - 10 Building and building improvements up to 39.5 Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not December 31, 2016, 2015 2014.
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]	(vii) Intangible assets The Company records assets acquired and liabilities assumed in a business combination based upon their acquisition date fair values. In most instances there is not not may Intangible Assets Useful Life Customer relationships 5 - 10 Restrictive covenants 3 - 7 Trade name 3 - 5 Intellectual property 5 Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not December 31, 2016, 2015 2014.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]	(viii) Goodwill Goodwill is the excess of acquisition costs over the fair values of assets and liabilities of acquired businesses. During the measurement period, which is up to one may Goodwill is subject to a periodic assessment for impairment. HMS assesses goodwill for impairment on an annual basis as of June 30th not not not not two not first June 30, 2016 no no December 31, 2016, 2015 2014.
Income Tax, Policy [Policy Text Block]	(ix) 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 or expense in the period that includes the enactment date. A valuation allowance is provided against deferred tax assets to the extent their realization is not not. no not
Revenue Recognition, Policy [Policy Text Block]	( x 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. In addition, some of the Company’s contracts may not may
Estimated Liability for Appeals [Policy Text Block]	(xi) Estimated Liability for Appeals Under the Company’s Recovery Audit Contractor (“RAC”) contract with Centers for Medicare and Medicaid Services (“CMS”), the Medicaid RAC contracts with various states, and similar contracts for commercial health plan customers, HMS recognizes revenue when findings are sent to the customer for offset against future claims payments. Providers have the right to appeal a finding and may first second third third first second $30.8 $33.1 December 31, 2016 2015, $17.3 $15.9 $11.1 $12.8 may
Cost of Sales and Selling General and Administrative Expense [Policy Text Block]	(xii) Expense Classifications HMS cost of services is presented in the categories set forth below. Each category within cost of services excludes expenses relating to Selling, general and administrative expenses (“SG&A”) functions, which are presented separately as a component of total operating costs. A description of the primary expenses included in each category is as follows: Cost of Services: § Compensation: Salary, fringe benefits, bonus and stock-based compensation. § Data processing: Hardware, software and data communication costs. § Occupancy: Rent, utilities, depreciation, office equipment and repair and maintenance costs. § Direct project expense: Variable costs incurred from third § Other operating expense: Professional fees, temporary staffing, travel and entertainment, insurance and local and property tax costs. § Amortization of acquisition related software and intangible assets: Amortization of the cost of acquisition related software and intangible assets. SG&A: § Expenses related to general management, marketing and administration activities.
Estimating Valuation Allowances and Accrued Liabilities, Such as Bad Debt, Policy [Policy Text Block]	(xiii) Estimating Valuation Allowances and Accrued Liabilities The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reported period. In particular, management must make estimates of the probability of collecting accounts receivable. When evaluating the adequacy of the accounts receivable allowance, management reviews the accounts receivables based on an analysis of historical revenue adjustments, bad debts, customer concentrations, customer credit-worthiness, current economic trends and changes in customer payment terms. As of December 31, 2016 2015, $173.6 $169.1 $10.8 $11.5
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	(xiv) Stock-Based Compensation Long-Term Incentive Award Plans The Company grants equity-based compensation awards, including stock options and restricted stock units, to HMS employees and non-employee directors under the 2016 June 23, 2016. 2016 2006 2011 2016 2016 one four 2016 may not may not ten Stock-Based Compensation Expense For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense equal to the grant date fair value of the award on a straight-line basis over the requisite service period, which is generally the vesting term. For the performance-based awards subject to market conditions, the Company recognizes stock-based compensation expense equal to the grant date fair value of the stock options on a straight-line basis over the requisite service period. The fair value of each option grant with service-based conditions is estimated using the Black-Scholes pricing model. The fair value of each option grant with market-based conditions is estimated using a Monte Carlo simulation model. The fair value of each restricted stock unit is calculated based on the closing sale price of the Company’s common stock on the grant date. The determination of the fair value of the stock options on the grant date using the models above is affected by the Company’s stock price, as well as assumptions regarding a number of complex and subjective variables. Certain key variables include: the Company’s expected stock price volatility over the expected term of the awards; a risk-free interest rate; and any expected dividends. The Company estimates stock price volatility based on the historical volatility of the Company’s common stock and estimates the expected term of the awards based on the Company’s historical option exercises for similar types of stock option awards. The assumed risk-free interest rate is based on the yield on the measurement date of a zero not zero
Fair Value of Financial Instruments, Policy [Policy Text Block]	(xv) Fair Value of Financial Instruments Financial instruments are categorized into a three three 1 3 not § 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 Financial 3 4 8.
Lessee, Leases [Policy Text Block]	(xvi) 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.
Commitments and Contingencies, Policy [Policy Text Block]	(xvii) Contingencies From time to time, HMS is involved in legal proceedings in the ordinary course of business. The Company assesses the likelihood of any adverse judgments or outcomes to these contingencies as well as potential ranges or probable losses and establish reserves accordingly. HMS records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonable estimated. Significant judgment is required to determine both probability and the estimated amount. HMS reviews these provisions at least quarterly and adjusts the provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and updated information. Litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond the Company’s control. The amount of reserves required may
New Accounting Pronouncements, Policy [Policy Text Block]	(xviii) Recent Accounting Guidance Recently Adopted Accounting Guidance In April 2015, 2015 05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350 40 2015 05” 2015 05 not 2015 05 December 15, 2015, not In November 2015, 2015 17, Income Taxes (Topic 740 2015 17” 2015 17 2015 17, December 15, 2016, fourth 2016. $7.5 December 31, 2015. In March 2016, No. 2016 09, Compensation – Stock Compensation (Topic 718 2016 09” no 2016 09 December 15, 2016, fourth 2016 January 1, 2016, 2016. no January 1, 2016, $1.6 $1.8 December 31, 2015 2014, $1.9 December 31, 2016. no Recent Accounting Guidance Not In May 2014, 2014 09, 606 2014 09” 2014 09 December 15, 2017, not January 1, 2018. two third 2017. In February 2016, 2016 02, Leases (Topic 842 2016 02” 2016 02 2016 02 December 15, 2018 not In August 2016, No. 2016 15, Statements of Cash Flows (Topic 230 2016 15” . not eight December 15, 2017, In January 2017, No. 2017 01, Business Combinations (Topic 805 2017 01” 2017 01 December 15, 2017, In January 2017, No. 2017 04, Goodwill and Other (Topic 350 2017 04” 2 2 1 2 not December 15, 2019. January 1, 2017. Other new pronouncements issued but not December 31, 2016, not

Note 1 - Business and Summary24

Note 1 - Business and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Property and Equipment, Estimated Useful Life [Table Text Block]	Property and Equipment Useful Life Equipment 2 - 3 Leasehold improvements 3 - 10 Furniture and fixtures 3 - 5 Capitalized software 3 - 10 Building and building improvements up to 39.5
Useful Lives of Intangible Assets [Table Text Block]	Intangible Assets Useful Life Customer relationships 5 - 10 Restrictive covenants 3 - 7 Trade name 3 - 5 Intellectual property 5

Note 2 - Property and Equipme25

Note 2 - Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Property, Plant and Equipment [Table Text Block]	December 31, 2016 2015 Equipment $ 94,345 $ 90,496 Leasehold improvements 8,637 8,512 Building 8,624 8,624 Building improvements 12,671 11,367 Land 2,769 2,769 Furniture and fixtures 10,728 10,858 Capitalized software 110,696 104,266 248,470 236,892 Less: accumulated depreciation and amortization (156,303 ) (140,341 ) Property and equipment, net 92,167 96,551 December 31, (in millions) 2016 2015 2014 Depreciation and amortization expense related to property and equipment $ 24.9 $ 30.3 $ 32.9

Note 3 - Intangible Assets (Tab

Note 3 - Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Gross Accumulated Net Carrying December 31, 2016 Customer relationships $ 103,090 $ (71,914 ) $ 31,176 Trade name 15,936 (11,393 ) 4,543 Intellectual property 2,100 (140 ) 1,960 Restrictive covenants 133 (15 ) 118 Total $ 121,259 $ (83,462 ) $ 37,797 December 31, 2015 Customer relationships $ 101,806 $ (57,497 ) $ 44,309 Trade name 17,000 (10,221 ) 6,779 Restrictive covenants 16,800 (13,580 ) 3,220 Total $ 135,606 $ (81,298 ) $ 54,308
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Year ending December 31, 2017 $ 17,306 2018 16,685 2019 2,245 2020 791 2021 463 Thereafter 307

Note 5 - Accounts Payable, Ac27

Note 5 - Accounts Payable, Accrued Expenses and Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	December 31, December 31, Accounts payable, trade $ 13,847 $ 7,790 Accrued compensation and other 28,507 21,948 Accrued operating expenses 17,048 21,923 Total accounts payable, accrued expenses and other liabilities $ 59,402 $ 51,661

Note 6 - Income Taxes (Tables)

Note 6 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	December 31, 2016 2015 2014 Current tax expense: Federal $ 16,274 $ 25,852 $ 20,244 State 2,929 3,450 4,429 Total current tax expense: 19,203 29,302 24,673 Deferred tax expense (benefit): Federal (7,115 ) (12,571 ) (12,421 ) State (253 ) (1,449 ) 131 Total deferred tax benefit: (7,368 ) (14,020 ) (12,290 ) Total income tax expense $ 11,835 $ 15,282 $ 12,383
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	December 31, 2016 % 2015 % 2014 % Computed at federal statutory rate $ 17,315 35.0 $ 13,934 35.0 $ 9,215 35.0 State and local tax expense, net of federal benefit 2,448 5.0 1,038 2.6 2,973 11.3 Net perm deduction and credit tax benefits from prior years (6,213 ) (12.6 ) - - - - Net perm deduction and credit tax benefits from current year (1,509 ) (3.1 ) - - - - Other, net (206 ) (0.4 ) 310 0.8 195 0.7 Total income tax expense $ 11,835 23.9 $ 15,282 38.4 $ 12,383 47.0
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	December 31, 2016 2015 Deferred tax assets: Stock-based compensation $ 10,373 $ 9,059 Goodwill and intangible assets 10,711 10,449 Allowance for doubtful accounts 4,108 1,766 Deferred rent 1,120 1,119 Tenant improvements 1,226 1,392 Estimated liability for appeals 11,596 - Net operating loss carry-forwards 2,141 113 Property and equipment 79 - Accrued expenses and other 7,811 6,298 Total deferred tax assets 49,165 30,196 Deferred tax liabilities: Goodwill and intangible assets 52,729 56,790 Section 481(a) adjustment 14,757 - Property and equipment - 894 Capitalized software cost 4,396 3,473 Total deferred tax liabilities 71,882 61,157 Total net deferred tax liabilities $ 22,717 $ 30,961
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]	December 31, 2016 2015 Unrecognized tax benefits at January 1 $ 1,329 $ 1,329 Additions for tax positions taken during prior periods 763 565 Additions for tax positions taken during current period including amended prior years 5,931 - Reductions related to the expiration of statutes of limitations (590 ) (565 ) Unrecognized tax benefits at December 31 $ 7,433 $ 1,329

Note 7 - Credit Agreement (Tabl

Note 7 - Credit Agreement (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Interest Expense and Commitment Fees on Debt Instrument [Table Text Block]	December 31, 2016 2015 2014 Interest expense $ 4,837 $ 4,117 $ 4,186 Commitment fees $ 1,518 $ 1,513 $ 1,465

Note 8 - Equity (Tables)

Note 8 - Equity (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Class of Treasury Stock [Table Text Block]	Period Total Number of Average Total Number of (1) Approximate October 1, 2016 to October 31, 2016 — $ — — $ — November 1, 2016 to November 30, 2016 570,717 17.61 570,717 15,000,000 December 1, 2016 to December 31, 2016 569,615 18.25 569,615 5,000,000 October 1, 2016 to December 31, 2016 1,140,332 $ 17.93 1,140,332 $ 5,000,000

Note 10 - Stock-based Compens31

Note 10 - Stock-based Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]	December 31, 2016 2015 2014 Cost of services-compensation $ 3,805 $ 6,242 $ 5,075 Selling, general and administrative 9,472 8,055 8,280 Total $ 13,277 $ 14,297 $ 13,355
Share-based Compensation, Stock Options, Activity [Table Text Block]	Shares Weighted Weighted Aggregate Outstanding at December 31, 2015 5,030 $ 17.37 Granted 1,078 14.07 Exercised (511 ) 7.03 Forfeitures (67 ) 17.76 Expired (339 ) 22.67 Outstanding at December 31, 2016 5,191 17.35 5.00 $ 12,854 Expected to vest at December 31, 2016 2,207 15.22 5.72 7,219 Exercisable at December 31, 2016 2,150 $ 20.25 4.02 $ 3,042
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	December 31, 2016 2015 2014 Expected dividend yield 0 % 0 % 0 % Risk-free interest rate 1.20 % 1.54 % 1.57 % Expected volatility 44.01 % 40.62 % 38.18 % Expected life (years) 4.90 4.89 4.82
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	Number of Weighted Average Outstanding balance at December 31, 2015 1,154 $ 18.85 Granted 637 14.26 Vesting of restricted stock units, net of units withheld for taxes (193 ) 18.64 Units withheld for taxes (102 ) 18.64 Forfeitures (83 ) 16.95 Outstanding balance at December 31, 2016 1,413 $ 16.44

Note 11 - Earnings Per Share (T

Note 11 - Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Years ended December 31, 2016 2015 2014 Net income $ 37,636 $ 24,527 $ 13,947 Weighted average common shares outstanding-basic 84,221 87,881 87,673 Plus: net effect of dilutive stock options and restricted common shares 2,766 480 491 Weighted average common shares outstanding-diluted 86,987 88,361 88,164 Net income per common share-basic $ 0.45 $ 0.28 $ 0.16 Net income per common share-diluted $ 0.43 $ 0.28 $ 0.16

Note 12 - Commitments and Con33

Note 12 - Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Future Minimum Lease Payments for Leases [Table Text Block]	Capital Lease Payments Operating Lease Payments 2017 $ 4 $ 16,077 2018 - 6,304 2019 - 4,294 2020 - 3,815 2021 - 3,226 Thereafter - 4,852 Total 4 $ 38,568 Less: Interest - Total $ 4

Note 15 - Quarterly Financial34

Note 15 - Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Quarterly Financial Information [Table Text Block]	Year ended December 31, 2016 First Second Third Fourth Revenue $ 119,763 $ 123,550 $ 124,604 $ 125,590 Operating income $ 9,909 $ 16,352 $ 12,650 $ 18,758 Net income $ 4,560 $ 8,566 $ 13,508 $ 11,002 Net income per common share - basic $ 0.05 $ 0.10 $ 0.16 $ 0.14 Net income per common share - diluted $ 0.05 $ 0.10 $ 0.16 $ 0.12 Revenue, as reported $ 119,763 $ 123,550 $ 124,604 $ 125,590 Revenue, as revised $ 119,758 $ 121,512 $ 122,860 Selling, general and administrative expenses, as reported $ 22,930 $ 22,227 $ 24,875 $ 23,136 Selling, general and administrative expenses, as revised $ 22,925 $ 20,189 $ 23,131 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

Schedule II - Valuation and Q35

Schedule II - Valuation and Qualifying Accounts (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Valuation and Qualifying Accounts Disclosure [Table Text Block]	Balance at Provision Recoveries Charge-offs Balance at Year ended December 31, 2014 $ 15,899 12,861 (17 ) (19,384 ) $ 9,359 Year ended December 31, 2015 $ 9,359 8,046 (100 ) (5,841 ) $ 11,464 Year ended December 31, 2016 $ 11,464 21,583 108 (22,383 ) $ 10,772 Balance at Beginning of Year Provision Appeals found in providers favor Balance at End of Year Year ended December 31, 2014 $ 19,853 1,459 (1,998 ) $ 19,314 Year ended December 31, 2015 $ 19,314 2,610 (9,123 ) $ 12,801 Year ended December 31, 2016 $ 12,801 721 (2,396 ) $ 11,126

Note 1 - Business and Summary36

Note 1 - Business and Summary of Significant Accounting Policies (Details Textual)	3 Months Ended	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Number of Businesses	1	1
Maximum Balance Per Bank Account Insured by Federal Deposit Insurance Corporation	$ 250,000	$ 250,000
Tangible Asset Impairment Charges		0	$ 0	$ 0
Impairment of Intangible Assets (Excluding Goodwill)		0	0	0
Accounts Receivable, Net, Current	173,582,000	173,582,000	169,146,000
Allowance for Doubtful Accounts Receivable, Current	10,772,000	$ 10,772,000	11,464,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		0.00%
Goodwill, Impairment Loss		$ 0	0	$ 0
Estimated Liability for Appeals	30,755,000	30,755,000	33,078,000
Estimated Liability for Appeals, Amount Adjudicated	17,300,000	17,300,000	15,900,000
Estimated Liability for Appeals, Amount Probable of Being Returned	11,100,000	11,100,000	$ 12,800,000
Decrease to Total Current Assets and Total Long-term Liabilities [Member] | Year Ended December 31, 2015 [Member]
Prior Period Reclassification Adjustment	7,500,000
Increase to Net Cash From Operations and Net Cash Used in Financing [Member] | Year Ended December 31, 2015 [Member]
Prior Period Reclassification Adjustment	1,600,000
Increase to Net Cash From Operations and Net Cash Used in Financing [Member] | Year Ended December 31, 2014 [Member]
Prior Period Reclassification Adjustment	$ 1,800,000
Recognition of Net Excess Tax Benefits in the Provision for Income Taxes Rather Than Paid-in Capital [Member]
Current Period Reclassification Adjustment		$ 1,900,000
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%
The 2016 Omnibus Plan [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
The 2016 Omnibus Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		1 year
The 2016 Omnibus Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life		5 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

Note 1 - Business and Summary37

Note 1 - Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2016
Leasehold Improvements [Member]
Equipment (Year)	5 years
Building and Building Improvements [Member]
Equipment (Year)	39 years 182 days
Minimum [Member] | Equipment [Member]
Equipment (Year)	2 years
Minimum [Member] | Leasehold Improvements [Member]
Equipment (Year)	3 years
Minimum [Member] | Furniture and Fixtures [Member]
Equipment (Year)	3 years
Minimum [Member] | Software and Software Development Costs [Member]
Equipment (Year)	3 years
Maximum [Member] | Equipment [Member]
Equipment (Year)	3 years
Maximum [Member] | Leasehold Improvements [Member]
Equipment (Year)	10 years
Maximum [Member] | Furniture and Fixtures [Member]
Equipment (Year)	5 years
Maximum [Member] | Software and Software Development Costs [Member]
Equipment (Year)	10 years

Note 1 - Business and Summary38

Note 1 - Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2016
Customer Relationships [Member] | Minimum [Member]
Customer relationships (Year)	5 years
Customer Relationships [Member] | Maximum [Member]
Customer relationships (Year)	10 years
Restrictive Covenant [Member] | Minimum [Member]
Customer relationships (Year)	3 years
Restrictive Covenant [Member] | Maximum [Member]
Customer relationships (Year)	7 years
Trade Names [Member] | Minimum [Member]
Customer relationships (Year)	3 years
Trade Names [Member] | Maximum [Member]
Customer relationships (Year)	5 years
Intellectual Property [Member]
Customer relationships (Year)	5 years

Note 2 - Property and Equipme39

Note 2 - Property and Equipment (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Capital Leases, Balance Sheet, Assets by Major Class, Net	$ 4,000	$ 51,000
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	6,100,000	6,000,000
Capital Leases, Income Statement, Amortization Expense	$ 40,000	$ 1,200,000	$ 1,600,000

Note 2 - Property and Equipme40

Note 2 - Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property and equipment, gross	$ 248,470	$ 236,892
Less: accumulated depreciation and amortization	(156,303)	(140,341)
Property and equipment, net	92,167	96,551
Depreciation and amortization of property and equipment	24,882	30,328	$ 32,864
Equipment [Member]
Property and equipment, gross	94,345	90,496
Leasehold Improvements [Member]
Property and equipment, gross	8,637	8,512
Building [Member]
Property and equipment, gross	8,624	8,624
Building Improvements [Member]
Property and equipment, gross	12,671	11,367
Land [Member]
Property and equipment, gross	2,769	2,769
Furniture and Fixtures [Member]
Property and equipment, gross	10,728	10,858
Software and Software Development Costs [Member]
Property and equipment, gross	$ 110,696	$ 104,266

Note 3 - Intangible Assets (Det

Note 3 - Intangible Assets (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Amortization of Intangible Assets	$ 20,164	$ 20,270	$ 20,734
Restrictive Covenant [Member]
Finite-lived Intangible Assets, Gross, Write-off	16,800
Trade Names [Member]
Finite-lived Intangible Assets, Gross, Write-off	$ 1,200

Note 3 - Intangible Assets - Su

Note 3 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Net Carrying Amount	$ 37,797	$ 54,308
Gross Carrying Amount	121,259	135,606
Accumulated Amortization	(83,462)	(81,298)
Customer Relationships [Member]
Net Carrying Amount	31,176	44,309
Gross Carrying Amount	103,090	101,806
Accumulated Amortization	(71,914)	(57,497)
Trade Names [Member]
Net Carrying Amount	4,543	6,779
Gross Carrying Amount	15,936	17,000
Accumulated Amortization	(11,393)	(10,221)
Intellectual Property [Member]
Net Carrying Amount	1,960
Gross Carrying Amount	2,100
Accumulated Amortization	(140)
Restrictive Covenant [Member]
Net Carrying Amount	118	3,220
Gross Carrying Amount	133	16,800
Accumulated Amortization	$ (15)	$ (13,580)

Note 3 - Intangible Assets - Es

Note 3 - Intangible Assets - Estimated Amortization Expense of Intangible Assets (Details) $ in Thousands	Dec. 31, 2016USD ($)
2,017	$ 17,306
2,018	16,685
2,019	2,245
2,020	791
2,021	463
Thereafter	$ 307

Note 4 - Acquisitions (Details

Note 4 - Acquisitions (Details Textual) - USD ($)	Sep. 02, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016
Goodwill		$ 361,468,000		$ 379,716,000
Goodwill, Period Increase (Decrease)		$ 0	$ 0
Essette, Inc. [Member]
Business Combination, Consideration Transferred	$ 24,200,000
Cash Acquired from Acquisition	21,000,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets, Current	900,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	0
Goodwill	18,200,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	12,000,000
Goodwill, Purchase Accounting Adjustments	1,100,000
Other Net Assets, Purchase Accounting Adjustments	700,000
Essette, Inc. [Member] | Intellectual Property [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	2,100,000
Essette, Inc. [Member] | Customer Relationships [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	1,300,000
Finite-Lived Intangible Assets, Purchase Accounting Adjustments	200,000
Essette, Inc. [Member] | Restrictive Covenant [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	100,000
Essette, Inc. [Member] | Trade Names [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 100,000

Note 5 - Accounts Payable, Ac45

Note 5 - Accounts Payable, Accrued Expenses and Other Liabilities - Summary of Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts payable, trade	$ 13,847	$ 7,790
Accrued compensation and other	28,507	21,948
Accrued operating expenses	17,048	21,923
Total accounts payable, accrued expenses and other liabilities	$ 59,402	$ 51,661

Note 6 - Income Taxes (Details

Note 6 - Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Effective Income Tax Rate Reconciliation, Percent	23.90%	38.40%	47.00%
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount	$ 2,200
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Amount	5,700
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	7,400	$ 1,300
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	600	400
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	200	600	$ 400
Decrease in Unrecognized Tax Benefits is Reasonably Possible	900
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	5,931
Operating Loss Carryforwards	$ 13,800

Note 6 - Income Taxes - Summary

Note 6 - Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current tax expense:
Federal	$ 16,274	$ 25,852	$ 20,244
State	2,929	3,450	4,429
Total current tax expense:	19,203	29,302	24,673
Deferred tax expense (benefit):
Federal	(7,115)	(12,571)	(12,421)
State	(253)	(1,449)	131
Total deferred tax benefit:	(7,368)	(14,020)	(12,290)
Total income tax expense	$ 11,835	$ 15,282	$ 12,383

Note 6 - Income Taxes - Reconci

Note 6 - Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Total income tax expense, percentage	23.90%	38.40%	47.00%
Computed at federal statutory rate	$ 17,315	$ 13,934	$ 9,215
Computed at federal statutory rate, percentage	35.00%	35.00%	35.00%
State and local tax expense, net of federal benefit	$ 2,448	$ 1,038	$ 2,973
State and local tax expense, net of federal benefit, percentage	5.00%	2.60%	11.30%
Net perm deduction and credit tax benefits from prior years	$ (6,213)
Net perm deduction and credit tax benefits from prior years, percentage	(12.60%)
Net perm deduction and credit tax benefits from current year	$ (1,509)
Net perm deduction and credit tax benefits from current year, percentage	(3.10%)
Other, net	$ (206)	$ 310	$ 195
Other, net, percentage	(0.40%)	0.80%	0.70%
Total income tax expense	$ 11,835	$ 15,282	$ 12,383

Note 6 - Income Taxes - Summa49

Note 6 - Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Stock-based compensation	$ 10,373	$ 9,059
Goodwill and intangible assets	10,711	10,449
Allowance for doubtful accounts	4,108	1,766
Deferred rent	1,120	1,119
Tenant improvements	1,226	1,392
Estimated liability for appeals	11,596
Net operating loss carry-forwards	2,141	113
Property and equipment	79
Accrued expenses and other	7,811	6,298
Total deferred tax assets	49,165	30,196
Deferred tax liabilities:
Goodwill and intangible assets	52,729	56,790
Section 481(a) adjustment	14,757
Property and equipment		894
Capitalized software cost	4,396	3,473
Total deferred tax liabilities	71,882	61,157
Total net deferred tax liabilities	$ 22,717	$ 30,961

Note 6 - Income Taxes - Recon50

Note 6 - Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Unrecognized tax benefits at January 1	$ 1,329	$ 1,329
Additions for tax positions taken during prior periods	763	565
Additions for tax positions taken during current period including amended prior years	5,931
Reductions related to the expiration of statutes of limitations	(590)	(565)
Unrecognized tax benefits at December 31	$ 7,433	$ 1,329

Note 7 - Credit Agreement (Deta

Note 7 - Credit Agreement (Details Textual) $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2013USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Amortization of Debt Issuance Costs		$ 2,083	$ 2,084	$ 2,084
Repayments of Long-term Lines of Credit				35,000
Long-term Line of Credit, Noncurrent		197,796	197,796
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] | The 2013 Credit Agreement [Member]
Debt Issuance Costs, Net		2,800	4,900
Amortization of Debt Issuance Costs		2,100	2,100	$ 2,100
Letters of Credit Outstanding, Amount		3,000
Repayments of Long-term Lines of Credit		0	$ 0
Long-term Line of Credit, Noncurrent		$ 197,800
Line of Credit Facility, Maximum Borrowing Capacity	$ 500,000
Line of Credit Facility, Amount of Incremental Credit Facilities Under Specified Circumstances	$ 75,000
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] | Minimum [Member]
Debt Instrument, Covenant, Interest Coverage Ratio	3
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.375%
Line of Credit Facility, Additional Amount of Incremental Credit Facilities Under Specified Circumstances	$ 25,000
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] | 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
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.50%
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%

Note 7 - Credit Agreement - Sum

Note 7 - Credit Agreement - Summary of Interest Expense and Commitment Fees on Unused Portion of Revolving Credit Facility (Details) - Revolving Credit Facility [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Interest expense	$ 4,837	$ 4,117	$ 4,186
Commitment fees	$ 1,518	$ 1,513	$ 1,465

Note 8 - Equity (Details Textua

Note 8 - Equity (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jul. 30, 2015
Stock Repurchase Program, Authorized Amount				$ 75,000
Payments for Repurchase of Common Stock	$ 20,470	$ 50,000
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0

Note 8 - Equity - Summary of Re

Note 8 - Equity - Summary of Repurchases of Common Stock (Details) - USD ($)		1 Months Ended			3 Months Ended
		Dec. 31, 2016	Nov. 30, 2016	Oct. 31, 2016	Dec. 31, 2016
Maximum Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program		$ 5,000,000	$ 15,000,000		$ 5,000,000
Average Price Paid Per Share (in dollars per share)		$ 18.25	$ 17.61		$ 17.93
Total Number of Shares Purchased (in shares)		569,615	570,717		1,140,332
Publicly Announced Share Repurchase Program [Member]
Total Number of Shares Purchased (in shares)	[1]	569,615	570,717		1,140,332
[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, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	60.00%
Defined Contribution Plan, Cost	$ 4.8	$ 4.8	$ 5
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%

Note 10 - Stock-based Compens56

Note 10 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 6,300	$ 5,900	$ 6,500
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	12,700
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation		1,569	1,795
Allocated Share-based Compensation Expense	$ 13,277	$ 14,297	$ 13,355
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 5.55	$ 5.37	$ 7.59
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	510,512	577,559	516,552
Proceeds from Stock Options Exercised	$ 2,940	$ 4,187	$ 4,110
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 18 days
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation	$ 1,900	1,600	1,800
Allocated Share-based Compensation Expense	$ 6,900	6,400	7,600
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	1,231,736
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 14,100
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	335 days
Allocated Share-based Compensation Expense	$ 6,400	$ 7,900	$ 5,700

Note 10 - Stock-based Compens57

Note 10 - Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allocated Share-based Compensation Expense	$ 13,277	$ 14,297	$ 13,355
Cost of Sales [Member]
Allocated Share-based Compensation Expense	3,805	6,242	5,075
Selling, General and Administrative Expenses [Member]
Allocated Share-based Compensation Expense	$ 9,472	$ 8,055	$ 8,280

Note 10 - Stock-based Compens58

Note 10 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Beginning Balance, Shares (in shares)	5,030,000
Beginning Balance, Weighted Average Exercise Price (in dollars per share)	$ 17.37
Ending Balance, Weighted Average Remaining Contractual Terms (Year)	5 years
Ending Balance, Aggregate Intrinsic Value	$ 12,854
Expected to Vest, Shares (in shares)	2,207,000
Expected to Vest, Weighted Average Exercise Price (in dollars per share)	$ 15.22
Expected to Vest, Weighted Average Remaining Contractual Terms (Year)	5 years 262 days
Expected to Vest, Aggregate Intrinsic Value	$ 7,219
Exercisable, Shares (in shares)	2,150,000
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 20.25
Exercisable, Weighted Average Remaining Contractual Terms (Year)	4 years 7 days
Granted, Shares (in shares)	1,078,000
Granted, Weighted Average Exercise Price (in dollars per share)	$ 14.07
Exercised, Shares (in shares)	(510,512)	(577,559)	(516,552)
Exercised, Weighted Average Exercise Price (in dollars per share)	$ 7.03
Exercisable, Aggregate Intrinsic Value	$ 3,042
Forfeitures, Shares (in shares)	(67,000)
Forfeitures, Weighted Average Exercise Price (in dollars per share)	$ 17.76
Expired, Shares (in shares)	(339,000)
Expired, Weighted Average Exercise Price (in dollars per share)	$ 22.67
Ending Balance, Shares (in shares)	5,191,000	5,030,000
Ending Balance, Weighted Average Exercise Price (in dollars per share)	$ 17.35	$ 17.37

Note 10 - Stock-based Compens59

Note 10 - Stock-based Compensation - Weighted Average Assumptions Used in Valuation of Stock Options (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Expected dividend yield	0.00%
Employee Stock Option [Member]
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	1.20%	1.54%	1.57%
Expected volatility	44.01%	40.62%	38.18%
Expected life (years) (Year)	4 years 328 days	4 years 324 days	4 years 299 days

Note 10 - Stock-based Compens60

Note 10 - Stock-based Compensation - Summary of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Beginning balance, shares (in shares) | shares	1,154
Beginning balance, weighted average grant date fair value per unit (in dollars per share) | $ / shares	$ 18.85
Granted, shares (in shares) | shares	637
Granted, weighted average grant date fair value per unit (in dollars per share) | $ / shares	$ 14.26
Vesting of restricted stock units, net of units withheld for taxes (in shares) | shares	(193)
Vesting of restricted stock units, net of units withheld for taxes, weighted average grant date fair value per unit (in dollars per share) | $ / shares	$ 18.64
Units withheld for taxes (in shares) | shares	(102)
Units withheld for taxes, weighted average grant date fair value per unit (in dollars per share) | $ / shares	$ 18.64
Forfeitures, shares (in shares) | shares	(83)
Forfeitures, weighted average grant date fair value per unit (in dollars per share) | $ / shares	$ 16.95
Ending balance, shares (in shares) | shares	1,413
Ending balance, weighted average grant date fair value per unit (in dollars per share) | $ / shares	$ 16.44

Note 11 - Earnings Per Share (D

Note 11 - Earnings Per Share (Details Textual) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,070,771	3,480,458	2,442,628
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	46,651	305,999	90,905

Note 11 - Earnings Per Share -

Note 11 - Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income	$ 11,002	$ 13,508	$ 8,566	$ 4,560	$ 8,725	$ 6,862	$ 5,418	$ 3,522	$ 37,636	$ 24,527	$ 13,947
Basic (in shares)									84,221	87,881	87,673
Plus: net effect of dilutive stock options and restricted common shares (in shares)									2,766	480	491
Weighted average common shares outstanding-diluted (in shares)									86,987	88,361	88,164
Net income (loss) per common share - basic (in dollars per share)	$ 0.14	$ 0.16	$ 0.10	$ 0.05	$ 0.10	$ 0.08	$ 0.06	$ 0.04	$ 0.45	$ 0.28	$ 0.16
Net income (loss) per common share - diluted (in dollars per share)	$ 0.12	$ 0.16	$ 0.10	$ 0.05	$ 0.10	$ 0.08	$ 0.06	$ 0.04	$ 0.43	$ 0.28	$ 0.16

Note 12 - Commitments and Con63

Note 12 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Leases, Rent Expense	$ 14,000,000	$ 15,766,000	$ 16,950,000
Operating Leases, Rent Expense, Sublease Rentals	27,000	25,000	42,000
Lease Expense Exclusive of Sublease Income [Member]
Operating Leases, Rent Expense	$ 5,000,000	$ 5,400,000	$ 6,900,000

Note 12 - Commitments and Con64

Note 12 - Commitments and Contingencies - Minimum Annual Lease Payments (Details) $ in Thousands	Dec. 31, 2016USD ($)
Capital lease payments, 2017	$ 4
Operating lease payments, 2017	16,077
Capital lease payments, 2018
Operating lease payments, 2018	6,304
Capital lease payments, 2019
Operating lease payments, 2019	4,294
Capital lease payments, 2020
Operating lease payments, 2020	3,815
Capital lease payments, 2021
Operating lease payments, 2021	3,226
Capital lease payments, Thereafter
Operating lease payments, Thereafter	4,852
Total	4
Total	38,568
Capital lease payments, Less: Interest
Total	$ 4

Note 13 - Customer Concentrat65

Note 13 - Customer Concentration (Details Textual)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Ten Largest Customers [Member]
Concentration Risk, Percentage	40.60%	44.00%	40.10%

Note 14 - Subsequent Events (De

Note 14 - Subsequent Events (Details Textual) - Eliza Holding Corp [Member] - Subsequent Event [Member] $ in Millions	Apr. 17, 2017USD ($)
Payments to Acquire Businesses, Gross	$ 172
Business Combination, Consideration Transferred, Cash on Hand, Percentage	75.00%
Business Combination, Consideration Transferred, Borrowing, Percentage	25.00%

Note 15 - Quarterly Financial67

Note 15 - Quarterly Financial Data (Unaudited) (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016
Immaterial Error Correction, Overstatements of Revenue and of Selling, General and Administrative Expenses	$ 1,744,244	$ 2,038,000	$ 5,050

Note 15 - Quarterly Financial68

Note 15 - Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating income (loss)	$ 18,758	$ 12,650	$ 16,352	$ 9,909	$ 14,823	$ 13,016	$ 11,752	$ 7,981	$ 57,669	$ 47,572	$ 34,204
Net income	$ 11,002	$ 13,508	$ 8,566	$ 4,560	$ 8,725	$ 6,862	$ 5,418	$ 3,522	$ 37,636	$ 24,527	$ 13,947
Net income (loss) per common share - basic (in dollars per share)	$ 0.14	$ 0.16	$ 0.10	$ 0.05	$ 0.10	$ 0.08	$ 0.06	$ 0.04	$ 0.45	$ 0.28	$ 0.16
Net income (loss) per common share - diluted (in dollars per share)	$ 0.12	$ 0.16	$ 0.10	$ 0.05	$ 0.10	$ 0.08	$ 0.06	$ 0.04	$ 0.43	$ 0.28	$ 0.16
Revenue	$ 125,590	$ 124,604	$ 123,550	$ 119,763	$ 128,514	$ 118,444	$ 116,934	$ 110,324	$ 489,720	$ 474,216	$ 443,225
Selling, general and administrative expenses	23,136	24,875	22,227	22,930					$ 89,381	$ 83,121	$ 81,071
Pro Forma [Member] | Immaterial Error Correction [Member]
Revenue		122,860	121,512	119,758
Selling, general and administrative expenses		$ 23,131	$ 20,189	$ 22,925

Schedule II - Valuation and Q69

Schedule II - Valuation and Qualifying Accounts - Summary of Allowance for Doubtful Accounts and Estimated Liability for Appeals (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for Doubtful Accounts [Member]
Balance at Beginning of Year	$ 11,464	$ 9,359	$ 15,899
Provision	21,583	8,046	12,861
Recoveries	108	(100)	(17)
Charge-offs	(22,383)	(5,841)	(19,384)
Balance at End of Year	10,772	11,464	9,359
Estimated Liability for Appeals and Estimated Allowance for Appeals [Member]
Balance at Beginning of Year	12,801	19,314	19,853
Provision	721	2,610	1,459
Appeals found in providers favor	(2,396)	(9,123)	(1,998)
Balance at End of Year	$ 11,126	$ 12,801	$ 19,314