COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-50194 | |
Entity Registrant Name | HMS HOLDINGS CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 11-3656261 | |
Entity Address, Address Line One | 5615 High Point Drive | |
Entity Address, City or Town | Irving | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75038 | |
City Area Code | 214 | |
Local Phone Number | 453-3000 | |
Title of 12(b) Security | Common Stock $0.01 par value | |
Trading Symbol | HMSY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 87,353,476 | |
Entity Central Index Key | 0001196501 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 268,677 | $ 178,946 |
Accounts receivable, net of allowance of $12,808 and $13,683, at June 30, 2019 and December 31, 2018, respectively | 199,932 | 206,772 |
Prepaid expenses | 20,348 | 19,970 |
Income tax receivable | 9,431 | 18,817 |
Deferred financing costs, net | 564 | 564 |
Other current assets | 225 | 240 |
Total current assets | 499,177 | 425,309 |
Property and equipment, net | 86,607 | 94,435 |
Goodwill | 487,617 | 487,617 |
Intangible assets, net | 62,463 | 67,140 |
Operating lease right-of-use assets | 18,940 | |
Deferred financing costs, net | 1,391 | 1,673 |
Other assets | 3,544 | 2,344 |
Total assets | 1,159,739 | 1,078,518 |
Current liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 71,330 | 74,902 |
Estimated liability for appeals | 2,948 | 21,723 |
Total current liabilities | 74,278 | 96,625 |
Long-term liabilities: | ||
Revolving credit facility | 240,000 | 240,000 |
Operating lease liabilities | 17,245 | |
Net deferred tax liabilities | 23,073 | 18,485 |
Other liabilities | 7,173 | 10,012 |
Total long-term liabilities | 287,491 | 268,497 |
Total liabilities | 361,769 | 365,122 |
Commitments and contingencies | ||
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;101,014,406 shares issued and 87,350,498 shares outstanding at June 30, 2019; 98,924,501 shares issued and 85,261,664 shares outstanding at December 31, 2018 | 1,010 | 989 |
Capital in excess of par value | 461,559 | 425,748 |
Retained earnings | 470,977 | 422,235 |
Treasury stock, at cost: 13,663,194 shares at June 30, 2019 and December 31, 2018 | (135,576) | (135,576) |
Total shareholders' equity | 797,970 | 713,396 |
Total liabilities and shareholders' equity | $ 1,159,739 | $ 1,078,518 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance of $12,808 and $13,683, at June 30, 2019 and December 31, 2018, respectively | $ 12,808 | $ 13,683 |
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) | 101,014,406 | 98,924,501 |
Common stock, shares outstanding (in shares) | 87,350,498 | 85,261,664 |
Treasury cost, shares (in shares) | 13,663,194 | 13,663,194 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 168,182 | $ 146,791 | $ 316,135 | $ 288,216 |
Cost of services: | ||||
Compensation | 58,322 | 55,188 | 115,775 | 111,267 |
Direct project and other operating expenses | 20,742 | 17,959 | 40,941 | 34,607 |
Information technology | 12,316 | 14,240 | 25,420 | 26,503 |
Occupancy | 4,052 | 4,014 | 8,131 | 8,397 |
Amortization of acquisition related software and intangible assets | 4,166 | 9,621 | 8,332 | 17,753 |
Total cost of services | 99,598 | 101,022 | 198,599 | 198,527 |
Selling, general and administrative expenses | 28,036 | 26,532 | 57,282 | 58,530 |
Settlement expense | 0 | 20,000 | 0 | 20,000 |
Total operating expenses | 127,634 | 147,554 | 255,881 | 277,057 |
Operating income/(loss) | 40,548 | (763) | 60,254 | 11,159 |
Interest expense | (2,853) | (3,034) | (5,702) | (5,682) |
Interest income | 966 | 188 | 2,080 | 308 |
Income/(loss) before income taxes | 38,661 | (3,609) | 56,632 | 5,785 |
Income taxes | 9,561 | (242) | 7,890 | 2,761 |
Net income/(loss) | $ 29,100 | $ (3,367) | $ 48,742 | $ 3,024 |
Basic income per common share: | ||||
Net income/(loss) per common share -- basic (in dollars per share) | $ 0.34 | $ (0.04) | $ 0.56 | $ 0.04 |
Diluted income per common share: | ||||
Net income/(loss) per common share -- diluted (in dollars per share) | $ 0.33 | $ (0.04) | $ 0.55 | $ 0.04 |
Weighted average shares: | ||||
Basic (in shares) | 85,956 | 83,231 | 86,524 | 83,222 |
Diluted (in shares) | 87,858 | 83,231 | 88,843 | 84,837 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock and paid-in capital | Retained earnings | Treasury stock | Shares issued |
Balance, beginning of period at Dec. 31, 2017 | $ 369,686 | $ 366,164 | $ (129,621) | ||
Balance, beginning of period (in shares) at Dec. 31, 2017 | 13,279,393 | 96,536,251 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | 2,390 | ||||
Stock-based compensation expense | 14,208 | ||||
Vesting of restricted stock units, net of shares withheld for employee tax | (2,684) | ||||
Net income/(loss) | $ 3,024 | 3,024 | |||
Purchase of treasury stock | $ (5,955) | ||||
Exercise of stock options (in shares) | 151,034 | 151,034 | |||
Vesting of restricted stock units, net of shares withheld for employee tax (in shares) | 363,823 | ||||
Purchase of treasury stock (in shares) | 383,801 | ||||
Balance, end of period (in shares) at Jun. 30, 2018 | 13,663,194 | 97,051,108 | |||
Balance, end of period at Jun. 30, 2018 | $ 618,639 | 383,600 | 370,615 | $ (135,576) | |
Balance, beginning of period at Mar. 31, 2018 | 376,737 | 373,982 | $ (135,576) | ||
Balance, beginning of period (in shares) at Mar. 31, 2018 | 13,663,194 | 96,876,154 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | 2,246 | ||||
Stock-based compensation expense | 4,714 | ||||
Vesting of restricted stock units, net of shares withheld for employee tax | (97) | ||||
Net income/(loss) | $ (3,367) | (3,367) | |||
Purchase of treasury stock | $ 0 | ||||
Exercise of stock options (in shares) | 87,230 | 141,991 | |||
Vesting of restricted stock units, net of shares withheld for employee tax (in shares) | 32,963 | ||||
Purchase of treasury stock (in shares) | 0 | ||||
Balance, end of period (in shares) at Jun. 30, 2018 | 13,663,194 | 97,051,108 | |||
Balance, end of period at Jun. 30, 2018 | $ 618,639 | 383,600 | 370,615 | $ (135,576) | |
Balance, beginning of period at Dec. 31, 2018 | 713,396 | 426,737 | 422,235 | $ (135,576) | |
Balance, beginning of period (in shares) at Dec. 31, 2018 | 13,663,194 | 98,924,501 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | 26,998 | ||||
Stock-based compensation expense | 15,781 | ||||
Vesting of restricted stock units, net of shares withheld for employee tax | (6,947) | ||||
Net income/(loss) | $ 48,742 | 48,742 | |||
Purchase of treasury stock | $ 0 | ||||
Exercise of stock options (in shares) | 1,686,408 | 1,686,408 | |||
Vesting of restricted stock units, net of shares withheld for employee tax (in shares) | 403,497 | ||||
Purchase of treasury stock (in shares) | 0 | ||||
Balance, end of period (in shares) at Jun. 30, 2019 | 13,663,194 | 101,014,406 | |||
Balance, end of period at Jun. 30, 2019 | $ 797,970 | 462,569 | 470,977 | $ (135,576) | |
Balance, beginning of period at Mar. 31, 2019 | 454,087 | 441,877 | $ (135,576) | ||
Balance, beginning of period (in shares) at Mar. 31, 2019 | 13,663,194 | 100,745,077 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | 3,859 | ||||
Stock-based compensation expense | 4,802 | ||||
Vesting of restricted stock units, net of shares withheld for employee tax | (179) | ||||
Net income/(loss) | $ 29,100 | 29,100 | |||
Purchase of treasury stock | $ 0 | ||||
Exercise of stock options (in shares) | 242,723 | 242,723 | |||
Vesting of restricted stock units, net of shares withheld for employee tax (in shares) | 26,606 | ||||
Purchase of treasury stock (in shares) | 0 | ||||
Balance, end of period (in shares) at Jun. 30, 2019 | 13,663,194 | 101,014,406 | |||
Balance, end of period at Jun. 30, 2019 | $ 797,970 | $ 462,569 | $ 470,977 | $ (135,576) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net income | $ 48,742 | $ 3,024 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property, equipment and software | 15,989 | 16,758 |
Amortization of intangible assets | 4,677 | 12,774 |
Amortization of deferred financing costs | 282 | 282 |
Stock-based compensation expense | 15,781 | 14,208 |
Deferred income taxes | 4,588 | (3,900) |
Noncash lease expense | 2,366 | |
Release of estimated liability for appeals, net | (10,478) | (8,436) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,062) | (3,654) |
Prepaid expenses | (378) | 63 |
Other current assets | 15 | 570 |
Other assets | (1,200) | (29) |
Income taxes receivable | 9,386 | (5,324) |
Accounts payable, accrued expenses and other liabilities | (7,235) | (2,546) |
Operating lease liabilities | (2,952) | |
Estimated liability for appeals | 605 | (99) |
Net cash provided by operating activities | 78,126 | 23,691 |
Investing activities: | ||
Purchases of property and equipment | (945) | (2,455) |
Investment in capitalized software | (7,465) | (10,173) |
Net cash used in investing activities | (8,410) | (12,628) |
Financing activities: | ||
Proceeds from exercise of stock options | 26,998 | 2,390 |
Payments of tax withholdings on behalf of employees for net-share settlements | (6,947) | (2,684) |
Payments on capital lease obligations | (36) | |
Purchases of treasury stock | 0 | (5,955) |
Net cash provided by/(used in) financing activities | 20,015 | (6,249) |
Net increase in cash and cash equivalents | 89,731 | 4,814 |
Cash and Cash Equivalents | ||
Cash and cash equivalents at beginning of year | 178,946 | 83,313 |
Cash and cash equivalents at end of period | 268,677 | 88,127 |
Supplemental disclosure of cash flow information: | ||
Cash (refunds received)/paid for income taxes, net of refunds | (6,509) | 11,472 |
Cash paid for interest | 5,524 | 4,916 |
Supplemental disclosure of non-cash activities: | ||
Change in balance of accrued property and equipment purchases | $ 250 | $ 1,082 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | Business and Summary of Significant Accounting Policies (a) Business The terms “HMS,” “Company,” “we,” “us,” and “our” refer to HMS Holdings Corp. and its consolidated subsidiaries unless the context clearly indicates otherwise. HMS is an industry-leading provider of cost containment solutions in the healthcare marketplace. We use healthcare data technology, analytics and engagement solutions, to deliver coordination of benefits, payment integrity and population health management solutions to help payers reduce costs, improve healthcare outcomes and enhance member experiences. We provide coordination of benefits services to government and commercial healthcare payers to ensure that the correct party pays the claim, and our payment integrity services promote accuracy by fighting fraud, waste and abuse. Our population health management solutions consist of population risk analytics and care management and consumer engagement services that provide risk-bearing organizations with reliable intelligence across their member populations to identify risks and improve patient engagement and outcomes. Together these various services help move the healthcare system forward for our customers. We currently operate as one business segment with a single management team that reports to the Chief Executive Officer. The Consolidated Financial Statements and accompanying Notes in this Form 10-Q are unaudited. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. These statements include all adjustments (which include only normal recurring adjustments, except as disclosed) that management considers necessary to present a fair statement of the Company’s results of operations, financial position and cash flows. The results reported in these unaudited Consolidated Financial Statements should not be regarded as necessarily indicative of results that may be expected for the entire year. It is suggested that these unaudited Consolidated Financial Statements be read in conjunction with the Company’s consolidated financial statements and notes thereto as of and for the year ended December 31, 2018 , which were filed with the SEC as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”). The consolidated balance sheet as of December 31, 2018 included herein was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The preparation of the Company’s unaudited Consolidated Financial Statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, primarily accounts receivable, intangible assets, fixed assets, accrued expenses, estimated liability for appeals, the disclosure of contingent liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting periods. The Company’s actual results could differ from those estimates. These unaudited Consolidated Financial Statements include HMS accounts and transactions and those of the Company’s wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. (b) Summary of Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies that are referenced in the 2018 Form 10-K other than as described below with respect to leases. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires most lessees to recognize a majority of the company’s leases on the balance sheet, which increases reported assets and liabilities. ASU 2016-02 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases ; and ASU No. 2018-11, Targeted Improvements . The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018 including interim periods within such annual reporting periods with early adoption permitted. The Company adopted this guidance on January 1, 2019, utilizing the optional transition method approach with an effective date of January 1, 2019. Consequently, financial information prior to the effective date was not updated and the disclosures required under the new standard are not provided for dates and periods prior to the effective date. There were no cumulative effect adjustments to retained earnings as part of adoption. The Company elected the available practical expedients, including the practical expedient to not separate lease and non-lease components of its leases and the short-term lease practical expedient. The Company’s internal control framework did not materially change, but existing internal controls were modified due to certain changes to business processes and systems to support the new leasing standard as necessary. As the Company previously disclosed, the standard had a material impact on its consolidated balance sheets, the most significant impact being the recognition of approximately $21.3 million of ROU assets and $26.3 million lease liabilities on the effective date, but there was no impact on its consolidated income statements. The Company continues to expect that any impact from its adoption of the new standard will be immaterial to its net income and its internal control framework for future periods. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting, (“ASU 2018-07”). ASU 2018-07 requires entities to apply similar accounting for share-based payment transactions with non-employees as with share-based payment transactions with employees. ASU 2018-07 is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this guidance on January 1, 2019. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”). ASU 2016-13 introduces the current expected credit losses methodology for estimating allowances for credit losses. ASU 2016-13 applies to all financial instruments carried at amortized cost and off-balance-sheet credit exposures not accounted for as insurance, including loan commitments, standby letters of credit, and financial guarantees. The new accounting standard does not apply to trading assets, loans held for sale, financial assets for which the fair value option has been elected, or loans and receivables between entities under common control. ASU 2016-13 is effective for public entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company continues to evaluate whether the adoption of this guidance will have any impact on the Company’s financial statements but does not expect that this guidance will have a material impact on the Company’s financial position, results of operations or internal control framework. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"). The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. ASU 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not been issued. Entities can choose to adopt the new guidance prospectively to eligible costs incurred on or after the date this guidance is first applied or retrospectively. This guidance is not expected to have a material impact on the Company’s financial position, results of operations or internal control framework. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company’s revenue disaggregated by solution for the three and six months ended June 30, 2019 and 2018 was as follows (in thousands) : Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Coordination of Benefits $ 105,094 $ 100,755 $ 210,945 $ 192,507 Payment Integrity 49,121 31,192 76,847 69,833 Population Health Management 13,967 14,844 28,343 25,876 Total $ 168,182 $ 146,791 $ 316,135 $ 288,216 Coordination of benefits revenue is derived from contracts with state governments and Medicaid managed care plans that can span years with the option to renew. Types of service contracts could include: (a) the identification of erroneously paid claims; (b) the delivery of verified commercial insurance coverage information; (c) the identification of paid claims where another third party is liable; and (d) the identification and enrollment of Medicaid members who have access to employer insurance. Most of these types of service contracts contain multiple promises, all of which are not distinct within the context of the contract. Therefore, the promises represent a single, distinct performance obligation for the types of services we offer. Revenue derived from these performance obligations is largely based on variable consideration where, based on the number of claims or amount of findings the Company identified, a contingent or fixed transaction price/recovery percentage is allocated to each distinct performance obligation. The Company utilizes the expected value method to estimate the variable consideration related to the transaction price for its service contracts. Key inputs and assumptions in determining variable consideration include identified pricing and expected recoveries and/or savings. The expected recoveries and/or savings are based on historical experience of information received from our customers. Revenue is primarily recognized at a point in time when our customers realize economic benefits from our services when our services are completed. However, we have a limited number of fixed fee arrangements where revenue is recognized over time as performance obligations are satisfied within one to three years . Generally, coordination of benefit contract payment terms are not standardized within the respective contract; however, payment is typically due on demand and there is a clear and distinct history of customers making consistent payments. Analytical services revenue consists of revenue for our payment integrity services and population health management solutions. Payment integrity services revenue is derived from contracts with federal and state governments, commercial health plans and other at-risk entities that can span years with the option to renew. Types of service contracts could include: (a) services designed to ensure that healthcare payments are accurate and appropriate; and (b) the identification of over/under payments or inaccurate charges based on a review of medical records. Most of these types of service contracts contain multiple promises, all of which are not distinct within the context of the contract. Therefore, the promises represent a single, distinct performance obligation for the types of services we offer. Revenue derived from these performance obligations is largely based on variable consideration where, based on the amount of recovery findings the Company identifies, a contingent or fixed transaction price/recovery percentage is allocated to each distinct performance obligation. The Company utilizes the expected value method to estimate the variable consideration related to the transaction price for its service contracts. Key inputs and assumptions in determining variable consideration include identified pricing and expected recoveries and/or savings. The expected recoveries and/or savings are based on historical experience of information received from our customers. Revenue is primarily recognized at a point in time when our customers realize economic benefits from our services when our services are completed. However, we have a limited number of fixed fee arrangements where revenue is recognized over time as performance obligations are satisfied within one to three years . Generally, payment integrity contract payment terms are not standardized within the respective contract; however, invoice payment is typically due on demand and there is a clear and distinct history of customers making consistent payments. Population health management revenue is derived from contracts with health plans and other risk-bearing entities that can span years with the option to renew. Types of service contracts could include: (a) programs designed to improve member engagement; and (b) outreach services designed to improve clinical outcomes. Most of these types of service contracts contain multiple promises, all of which are not distinct within the context of the contract. Therefore, the promises represent a single, distinct performance obligation for the types of services we offer. Revenue derived from these services is largely based on consideration associated with prices per order/transfer and PMPM/PMPY fees. The Company believes the output method is a reasonable measure of progress for the satisfaction of our performance obligations, which are satisfied over time, as it provides a faithful depiction of (1) our performance toward complete satisfaction of the performance obligation under the contract and (2) the value transferred to the customer of the services performed under the contract. The Company has elected the right to invoice practical expedient for recognition of revenue related to its performance obligations when the amount we have the right to invoice the customer corresponds directly with the value to the customer. Additionally, certain population health management contracts have distinct performance obligations related to software license and implementation fees which have historically been recognized as revenue ratably over the life of the contract. Lastly, we have a limited number of fixed fee arrangements where revenue is recognized over time as performance obligations are satisfied within one to three years . Upon adoption of ASC 606, revenue for software licenses is recognized at the beginning of the license period when control is transferred as the license is installed and revenue for implementation fees is recognized when control is transferred over time as the implementation is being performed. As the performance obligation is deemed to have been satisfied and control transferred to our customers for software licenses and implementation fees on or before December 31, 2017, the Company recorded a decrease to deferred revenue and an increase to opening retained earnings of $1.1 million , net of tax, as of January 1, 2018 for the cumulative adoption of ASC 606. Generally, population health management contract payment terms are stated within the contract and are due within an explicitly stated time period (e.g., 30, 45, 60 days) from the date of invoice. A portion of the payment received may relate to future performance obligations and will result in an increase to deferred revenue until the obligation has been met. In connection with coordination of benefits and certain payment integrity services, lockboxes and their associated bank accounts are setup to support recoveries and remittances. Generally, these bank accounts are for the benefit of the Company’s customers. Customer cash held in Company bank accounts for the benefit of the customer was approximately $4.9 million as of June 30, 2019 . This amount is included in cash and cash equivalents and other current liabilities on the accompanying consolidated balance sheet. The Company’s revenue disaggregated by market for the three and six months ended June 30, 2019 and 2018 was as follows ( in thousands ): Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Commercial $ 79,044 $ 80,493 $ 155,303 $ 152,278 State 65,180 58,815 126,922 113,435 Federal 23,958 7,483 33,910 22,503 Total $ 168,182 $ 146,791 $ 316,135 $ 288,216 A portion of the Company’s services are deferred and revenue is recognized at a later time. Deferred revenue was approximately $5.9 million and $5.6 million as of June 30, 2019 and December 31, 2018 , respectively, and is included in Accounts payable, accrued expenses and other liabilities in the Consolidated Balance Sheets. Approximately $2.8 million of the December 31, 2018 balance was recognized in revenue during the quarter ended June 30, 2019 . Contract modifications are routine in nature and often done to account for changes in the contract specifications or requirements. In most instances, contract modifications are for services that are not distinct, and, therefore, modifications are accounted for as part of the existing contract. The Company has elected to use the practical expedient to expense the incremental costs of obtaining a contract if the amortization period of the asset that the Company would have otherwise recognized is one year or less. |
Accounts Receivable and Account
Accounts Receivable and Accounts Receivable Allowance | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable and Accounts Receivable Allowance | Accounts Receivable and Accounts Receivable Allowance The Company’s accounts receivable, net, consisted of the following (in thousands) : June 30, December 31, Accounts receivable $ 212,740 $ 220,455 Allowance (12,808 ) (13,683 ) Accounts receivable, net $ 199,932 $ 206,772 We record an accounts receivable allowance based on historical patterns of billing adjustments, length of operating and collection cycle and customer negotiations, behaviors and payment patterns. Changes in these estimates are recorded to revenue in the period of change. The following is a summary of the activity in the accounts receivable allowance (in thousands) June 30, December 31, Balance--beginning of period $ 13,683 $ 14,799 Provision 7,717 20,453 Charge-offs (8,592 ) (21,569 ) Balance--end of period $ 12,808 $ 13,683 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets consisted of the following ( in thousands, except for weighted average amortization period ): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period in Years June 30, 2019 Customer relationships $ 68,290 $ (18,936 ) $ 49,354 12.5 Intellectual property 21,700 (8,606 ) 13,094 3.7 Trade names 136 (128 ) 8 0.2 Restrictive covenants 133 (126 ) 7 0.2 Total $ 90,259 $ (27,796 ) $ 62,463 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period in Years December 31, 2018 Customer relationships $ 156,790 $ (104,740 ) $ 52,050 12.8 Intellectual property 21,700 (6,670 ) 15,030 4.1 Trade names 16,246 (16,215 ) 31 0.7 Restrictive covenants 263 (234 ) 29 0.7 Total $ 194,999 $ (127,859 ) $ 67,140 Amortization expense of intangible assets is expected to approximate the following (in thousands): Year ending December 31, Amortization 2019 (excluding the six months ended June 30, 2019) $ 4,568 2020 7,613 2021 7,197 2022 7,197 2023 4,822 Thereafter 31,066 Total $ 62,463 For the three months ended June 30, 2019 and 2018 , amortization expense related to intangible assets was $2.3 million and $6.7 million , respectively. For the six months ended June 30, 2019 and 2018 , amortization expense related to intangible assets was $4.7 million and $12.8 million , respectively. There was no change in the carrying amount of goodwill for the six months ended June 30, 2019 . |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Expenses and Other Liabilities Accounts payable, accrued expenses and other liabilities consisted of the following (in thousands) : June 30, December 31, Accounts payable, trade $ 11,774 $ 12,394 Accrued compensation and other 26,735 42,833 Accrued operating expenses 26,301 19,675 Current portion of lease liabilities 6,520 — Total accounts payable, accrued expenses and other liabilities $ 71,330 $ 74,902 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate decreased to 13.9% for the six months ended June 30, 2019 from 47.7% for the six months ended June 30, 2018 . The effective tax rate for the six months ended June 30, 2019 includes discrete tax benefits related to net equity compensation deductions offset by interest on uncertain tax benefits. For the six months ended June 30, 2019 , the differences between the federal statutory rate and our effective tax rate are tax expense items related to state taxes, equity compensation impacts, unrecognized tax benefits, including interest, officer compensation deduction limits, research and development tax credits, and other permanent differences. Included in Other liabilities on the Consolidated Balance Sheets, are the total amount of unrecognized tax benefits (net of the federal benefit for state issues) of approximately $5.3 million and $4.8 million , as of June 30, 2019 and December 31, 2018 , respectively, that, if recognized, would favorably affect the Company’s future effective tax rate. Also included in Other liabilities on the Consolidated Balance Sheets, are accrued liabilities for interest expense and penalties related to unrecognized tax benefits of $1.0 million and $0.7 million as of June 30, 2019 and December 31, 2018 , respectively. HMS includes interest expense and penalties in the provision for income taxes in the unaudited Consolidated Statements of Income. The amount of interest expense (net of federal and state income tax benefits) and penalties in the unaudited Consolidated Statements of Income for the six months ended June 30, 2019 and 2018 was $0.3 million and $0.3 million , respectively. The Company believes it is reasonably possible that the amount of unrecognized tax benefits may decrease by $1.8 million over the next twelve months, due to the expiration of the statute of limitations in federal and various state jurisdictions. HMS files income tax returns with the U.S. Federal government and various state and local jurisdictions. HMS is no longer subject to U.S. Federal income tax examinations for years before 2013 . HMS operates in a number of state and local jurisdictions. Accordingly, HMS is subject to state and local income tax examinations based on the various statutes of limitations in each jurisdiction. |
Estimated Liability for Appeals
Estimated Liability for Appeals | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Estimated Liability for Appeals | Estimated Liability For Appeals Under the Company’s contracts with certain commercial health plan customers and its Medicare Recovery Audit Contractor (“RAC”) contract with the Centers for Medicare & Medicaid Services (“CMS”) (included within the Company’s payment integrity services revenue), providers have the right to appeal HMS claim findings and to pursue additional appeals if the initial appeal is found in favor of HMS’s customer. The appeal process established under the Medicare RAC contracts with CMS includes five levels of appeals, and resolution of appeals can take substantial time to resolve. HMS records (a) a liability for findings which have been previously adjudicated in favor of providers and (b) an estimated liability based on the amount of revenue that is subject to appeals and which are probable of being adjudicated in favor of providers following their successful appeal. The Company’s estimate is based on the Company’s historical experience. To the extent the amount to be returned to providers following a successful appeal exceeds or is less than the amount recorded, revenue in the applicable period would be reduced or increased by such amount. Any future changes or modifications to the Company's Medicare RAC contract or commercial health plan customer contracts may force the Company to apply different assumptions, which could materially affect both the Company’s revenue and estimated liability for appeals in future periods. The following roll-forward summarizes the activity in Estimated liability for appeals ( in thousands ): Original RAC contract RAC 4 contract Commercial contracts Total Balance at December 31, 2018 $ 19,380 $ 20 $ 2,323 $ 21,723 Provision — 604 5,135 5,739 Appeals found in providers favor — (309 ) (4,825 ) (5,134 ) Release of liability (19,380 ) — — (19,380 ) Balance at June 30, 2019 $ — $ 315 $ 2,633 $ 2,948 The Company’s original Medicare RAC contract with CMS expired on January 31, 2018. As a result of the original contract expiration, which historically had net settlement terms, the Company’s contractual obligation with respect to any appeals resolved in favor of providers subsequent to the expiration date ceased, and the Company released its estimated liability and increased revenue by $8.4 million during the first quarter of 2018 . The Company has determined, based on communications, that there is no further contractual obligation to CMS with respect to the original Medicare RAC contract as of June 30, 2019. Accordingly, the Company released its remaining estimated liability of $19.4 million and net receivables. As a result of the release, there was a $10.5 |
Credit Agreement
Credit Agreement | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Credit Agreement In December 2017 , the Company entered into an amendment to its Amended and Restated Credit Agreement, as amended (the “Credit Agreement”) which, among other things, extended the maturity of its then existing $500 million revolving credit facility by five years to December 2022 (the “Amended Revolving Facility”). The availability of funds under the Amended Revolving Facility includes sublimits for (a) up to $50 million for the issuance of letters of credit and (b) up to $25 million for swingline loans. In addition, the Company may increase the commitments under the Amended Revolving Facility and/or add one or more incremental term loan facilities, provided that such incremental facilities do not exceed in the aggregate the sum of (i) the greater of $120 million and 100% of Consolidated EBITDA (as defined in the Credit Agreement) and (ii) an additional amount so long as our first lien leverage ratio (as defined in the Credit Agreement) on a pro forma basis is not greater than 3.00 :1.00, subject to obtaining commitments from lenders therefore and meeting certain other conditions. As of June 30, 2019 and December 31, 2018 , the outstanding principal balance due on the Amended Revolving Facility was $240 million . No principal payments were made against the Amended Revolving Facility during the six months ended June 30, 2019 . Borrowings under the Amended Revolving Facility bear interest at a rate equal to, at the Company’s election (except with respect to swingline borrowings, which will accrue interest based only at the base rate), either: ▪ a base rate determined by reference to the greatest of (a) the prime or base commercial lending rate of the administrative agent as in effect on the relevant date, (b) the federal funds effective rate plus 0.50% and (c) the one-month London Interbank Offered Rate (or any successor rate determined in accordance with the Credit Agreement) (“LIBO Rate”) plus 1.00% , plus an interest margin ranging from 0.50% to 1.00% based on the Company’s consolidated leverage ratio for the applicable period; or ▪ an adjusted LIBO Rate, equal to the LIBO Rate for the applicable interest period multiplied by the statutory reserve rate (equal to (x) one divided by (y) one minus the aggregate of the maximum reserve percentage (including any marginal, special, emergency or supplemental reserves) established by the Board of Governors of the Federal Reserve System of the United States), plus an interest margin ranging from 1.50% to 2.00% based on the Company’s consolidated leverage ratio for the applicable period. In addition to paying interest on the outstanding principal, the Company is required to pay unused commitment fees on the Amended Revolving Facility during the term of the Credit Agreement ranging from 0.375% to 0.250% per annum based on the Company’s consolidated leverage ratio and letter of credit fees equal to 0.125% per annum on the aggregate face amount of each letter of credit, as well as customary agency fees. As part of a contractual agreement with a customer, the Company has an outstanding irrevocable letter of credit for $6.5 million , which is issued against its revolving credit facility and expires June 30, 2020. The Amended Revolving Facility is secured, subject to certain customary carve-outs and exceptions, by a first priority lien and security interest in substantially all tangible and intangible assets of the Company and certain subsidiaries of the Company. The Amended Revolving Facility contains certain restrictive covenants, which affect, among other things, the ability of the Company and its subsidiaries to incur indebtedness, create liens, make investments, sell or otherwise dispose of assets, engage in mergers or consolidations with other entities, and pay dividends or repurchase stock. The Company is also required to comply, on a quarterly basis, with two financial covenants: (i) a minimum interest coverage ratio of 3 :00:1:00, and (ii) a maximum consolidated leverage ratio of 4.75 :1.00 through December 2019 and 4.25 :1.00 from and after January 2020. The consolidated leverage ratio is subject to a step-up to 5.25 :1.00 for four full consecutive fiscal quarters following a permitted acquisition or similar investment. As of June 30, 2019 , the Company was in compliance with all terms of the Credit Agreement. Interest expense and the commitment fees on the unused portion of the Company’s Amended Revolving Facility were as follows ( in thousands ): Three Months Ended Six Months Ended 2019 2018 2019 2018 Interest expense $ 2,524 $ 2,627 $ 5,050 $ 4,697 Commitment fees 160 239 316 477 As of June 30, 2019 and December 31, 2018 , the unamortized balance of deferred origination fees and debt issuance costs was $2.0 million and $2.2 million , respectively. For the six month periods ended June 30, 2019 and 2018 , HMS amortized $0.3 million and $0.3 million , respectively, of interest expense related to the Company’s deferred origination fees and debt issue costs. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles the basic to diluted weighted average common shares outstanding using the treasury stock method (in thousands, except per share amounts) : Three Months Ended Six Months Ended 2019 2018 2019 2018 Net income/(loss) $ 29,100 $ (3,367 ) $ 48,742 $ 3,024 Weighted average common shares outstanding-basic 85,956 83,231 86,524 83,222 Plus: net effect of dilutive stock options and restricted stock units 1,902 — 2,319 1,615 Weighted average common shares outstanding-diluted 87,858 83,231 88,843 84,837 Net income/(loss) per common share -- basic $ 0.34 $ (0.04 ) $ 0.56 $ 0.04 Net income/(loss) per common share -- diluted $ 0.33 $ (0.04 ) $ 0.55 $ 0.04 For the three months ended June 30, 2019 , 588,379 stock options and restricted stock units representing 227,604 shares of the Company's common stock were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. For the three months ended June 30, 2018 , the Company incurred a net loss. As a result, there was no difference between the Company's basic and diluted earnings per share and 2,552,862 stock options and restricted stock units representing 626,341 shares of the Company's common stock were excluded from consideration in the calculation of diluted net loss per share because the effect would have been anti-dilutive. For the six months ended June 30, 2019 and 2018 , (i) 394,886 and 2,738,783 stock options, respectively, and (ii) restricted stock units representing 151,279 and 106,501 shares of common stock, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation (a) Long-Term Incentive Award Plans The Company grants stock options and restricted stock units to HMS employees and non-employee directors of the Company under the HMS Holdings Corp. 2019 Omnibus Incentive Plan (the “2019 Omnibus Plan”), as approved by the Company’s shareholders on May 22, 2019. The 2019 Omnibus Plan replaces and supersedes the HMS Holdings Corp. 2016 Omnibus Incentive Plan. Awards granted under the 2019 Omnibus Plan generally vest over one to four years. Subject to certain exceptions, the exercise price of stock options granted under the 2019 Omnibus Plan may not be less than the fair market value of a share of stock on the grant date, which is determined based on the closing price of the Company’s common stock reported on the Nasdaq Global Select Market on that date, and the term of a stock option may not exceed ten years. (b) Stock-Based Compensation Expense Total stock-based compensation expense in the Company’s unaudited Consolidated Statements of Income related to the Company’s long-term incentive award plans was as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Cost of services-compensation $ 2,720 $ 1,673 $ 6,843 $ 4,236 Selling, general and administrative 2,082 3,041 8,938 9,972 Total $ 4,802 $ 4,714 $ 15,781 $ 14,208 (c) Stock Options For the three months ended June 30, 2019 and 2018 , stock-based compensation expense related to stock options was approximately $2.0 million and $2.1 million , respectively. For the six months ended June 30, 2019 and 2018 , stock-based compensation expense related to stock options was approximately $6.8 million and $6.1 million, respectively. Presented below is a summary of stock option activity for the six months ended June 30, 2019 ( in thousands, except for weighted average exercise price and weighted average remaining contractual terms ): Number of Options Weighted Average Exercise Price Weighted Average- Remaining Contractual Terms Aggregate Intrinsic Value Outstanding balance at December 31, 2018 4,402 $ 17.07 Granted 622 38.72 Exercised (1,686 ) 16.01 Forfeitures (140 ) 19.31 Expired — — Outstanding balance at June 30, 2019 3,198 $ 21.79 6.86 $ 37,514 Expected to vest at June 30, 2019 1,045 $ 28.12 8.98 $ 7,507 Exercisable at June 30, 2019 1,728 $ 16.91 5.13 $ 26,745 During the three months ended June 30, 2019 and 2018 , the Company received proceeds of $3.9 million and $2.2 million , respectively, for the issuance of 242,723 and 87,230 shares of common stock upon the exercise of outstanding stock options, respectively. The total intrinsic value of stock options exercised during the three months ended June 30, 2019 and 2018 was $3.7 million and $0.8 million , respectively. During the six months ended June 30, 2019 and 2018 , the Company received proceeds of $27.0 million and $2.4 million , respectively, for the issuance of 1,686,408 and 151,034 shares of common stock upon the exercise of outstanding stock options, respectively. The total intrinsic value of stock options exercised during the six months ended June 30, 2019 and 2018 was $29.4 million and $0.8 million , respectively. As of June 30, 2019 , there was approximately $6.4 million of total unrecognized compensation cost related to stock options outstanding, which is expected to be recognized over a weighted average period of 1.3 years . The weighted-average grant date fair value per share of the stock options granted during the six months ended June 30, 2019 and 2018 was $13.82 and $7.52 , respectively. HMS estimated the fair value of each stock option grant on the date of grant using a Black-Scholes option pricing model and weighted–average assumptions set forth in the following table: Six Months Ended 2019 2018 Expected dividend yield 0 % 0 % Risk-free interest rate 2.5 % 2.7 % Expected volatility 40.9 % 42.4 % Expected life (years) 6.35 6.00 The total tax benefits recognized on stock-based compensation related to stock options for the six months ended June 30, 2019 and 2018 was $12.4 million and $2.5 million , respectively. (d) Restricted Stock Units For the three months ended June 30, 2019 and 2018 , stock-based compensation expense related to restricted stock units was approximately $2.8 million and $2.6 million , respectively. For the six months ended June 30, 2019 and 2018 , stock-based compensation expense related to restricted stock units was approximately $8.9 million and $8.1 million , respectively. Presented below is a summary of restricted stock units activity for the six months ended June 30, 2019 (in thousands, except for weighted average grant date fair value per unit): Number of Units Weighted Average Grant Date Fair Value per Unit Outstanding balance at December 31, 2018 1,488 $ 17.60 Granted 460 34.10 Vesting of restricted stock units, net of units withheld for taxes (403 ) 16.49 Units withheld for taxes (200 ) 16.49 Forfeitures (82 ) 18.92 Outstanding balance at June 30, 2019 1,263 $ 25.74 For the three months ended June 30, 2019 and 2018 , HMS granted 51,546 and 62,259 restricted stock units, respectively, with an aggregate fair market value of $1.6 million and $0.9 million, respectively. For the six months ended June 30, 2019 and 2018 , HMS granted 459,985 and 761,083 restricted stock units, respectively, with an aggregate fair market value of $15.7 million and $12.7 million, respectively. As of June 30, 2019 , 1,003,051 restricted stock units remained unvested and there was approximately $14.3 million of unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted average vesting period of 1.38 years. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are reported on the Company’s consolidated balance sheet within Operating lease right-of-use assets, Operating lease liabilities and Accounts payable, accrued expenses and other liabilities. Finance leases are reported on the Company’s consolidated balance sheets within Other assets, Other liabilities and Accounts payable, accrued expenses and other liabilities. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, we use the Company’s incremental borrowing rate based on the information available at the lease’s commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For certain real estate and equipment leases, the Company has lease agreements with lease and non-lease components, which are generally accounted for as a single component. The Company primarily leases real estate, information technology equipment and data centers on terms that expire on various dates through 2026, some of which include options to extend the lease for up to 10 years . We evaluate whether to include the option period in the calculation of the ROU asset and lease liability on a lease-by-lease basis. As of June 30, 2019 , all operating and finance leases that create significant rights and obligations for the Company have commenced. The components of lease expense for the three and six months ended June 30, 2019 were as follows ( in thousands ): Three Months Ended Six Months Ended Operating lease cost $ 1,658 $ 3,314 Finance lease cost: Amortization of right-of-use assets $ 30 $ 38 Interest on lease liabilities $ 4 $ 5 Total finance lease cost $ 34 $ 43 Supplemental cash flow and other information related to leases for the six months ended June 30, 2019 were as follows ( in thousands ): Six Months Ended Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 3,700 Operating cash flows from finance leases $ 4 Financing cash flows from finance leases $ 36 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 163 Finance leases $ 331 Supplemental balance sheet information related to leases as of June 30, 2019 consisted of the following ( in thousands ): June 30, 2019 Operating Leases Operating lease right-of-use assets $ 18,940 Other current liabilities $ 6,301 Operating lease liabilities $ 17,245 Total operating lease liabilities $ 23,546 Finance Leases Other Assets $ 656 Other current liabilities $ 219 Other long-term liabilities $ 440 Total finance leases liabilities $ 659 As of June 30, 2019, the weighted-average remaining lease term for operating and finance leases was 4.5 years and 3 years , respectively. As of June 30, 2019, the weighted-average discount rates were 5.7% and 5.0% for operating and finance leases, respectively. Sublease income for the six months ended June 30, 2019 and 2018 was $1.1 million and $0.8 million , respectively. Maturities of lease liabilities were as follows ( in thousands ): Year ended December 31, Operating Leases Finance Leases 2019 (excluding the six months ended June 30, 2019) $ 3,728 $ 123 2020 7,308 245 2021 5,605 245 2022 3,313 91 2023 3,073 — Thereafter 3,578 — Total lease payments 26,605 704 Less: Imputed interest 3,059 45 Total lease obligation $ 23,546 $ 659 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In July 2012, Dennis Demetre and Lori Lewis (the “Plaintiffs”), filed an action in the Supreme Court of the State of New York against HMS Holdings Corp., claiming an undetermined amount of damages alleging that various actions by HMS unlawfully deprived the Plaintiffs of the acquisition earn-out portion of the purchase price for Allied Management Group Special Investigation Unit, Inc. (“AMG”) under the applicable Stock Purchase Agreement (the “SPA”) and that HMS had breached certain contractual provisions under the SPA. The Plaintiffs filed a second amended complaint with two causes of action for breach of contract and one cause of action for breach of implied covenant of good faith and fair dealing. HMS asserted a counterclaim against Plaintiffs for breach of contract based on contractual indemnification costs, including attorneys’ fees arising out of the Company’s defense of AMG in Kern Health Systems v. AMG, Dennis Demetre and Lori Lewis (the “California Action”), which are recoverable under the SPA. In June 2016, Kern Health Systems and AMG entered into a settlement agreement that resolved all claims in the California Action. In July 2017, the Court issued a decision on the Company’s motion for partial summary judgment and granted the motion in part, dismissing one of Plaintiffs’ breach of contract causes of action against HMS. On November 3, 2017, following a jury trial, a verdict was returned in favor of the Plaintiffs on a breach of contract claim, and the jury awarded $60 million in damages to the Plaintiffs. On March 14, 2018, the Court held a hearing on the Company’s post-trial motion for an order granting it judgment notwithstanding the verdict or, alternatively, setting aside the jury’s award of damages. On June 27, 2018, prior to the Court issuing a decision on the motion, the Company entered into a Settlement Agreement (the “Settlement Agreement”) with the Plaintiffs, John Alfred Lewis and Christopher Brandon Lewis. Pursuant to the terms of the Settlement Agreement, the Company paid $20 million to resolve all matters in controversy pertaining to the lawsuit. On July 5, 2018, the Court entered an order to discontinue the lawsuit pursuant to the Stipulation of Discontinuance with Prejudice filed by the parties. In February 2018, the Company received a Civil Investigative Demand (“CID”) from the Texas Attorney General, purporting to investigate possible unspecified violations of the Texas Medicaid Fraud Prevention Act. In March 2018, the Company provided certain documents and information in response to the CID. HMS has not received any further requests for information in connection with this CID. In September 2018, a former employee filed an action in the New York County Supreme Court entitled Christopher Frey v. Health Management Systems, Inc. alleging retaliation under New York law. The complaint seeks recovery of an unspecified amount of monetary damages, including back pay and other compensatory and equitable relief. The Company has moved to dismiss the complaint. On May 2, 2019, the Court held a hearing on the Company’s motion to dismiss. The Company continues to believe that this claim is without merit and intends to vigorously defend this matter. From time to time, HMS may be subject to investigations, legal proceedings and other disputes arising in the ordinary course of the Company’s business, including but not limited to regulatory audits, billing and contractual disputes, employment-related matters and post-closing disputes related to acquisitions. Due to the Company’s contractual relationships, including those with federal and state government entities, HMS’s operations, billing and business practices are subject to scrutiny and audit by those entities and other multiple agencies and levels of government, as well as to frequent transitions and changes in the personnel responsible for oversight of the Company’s contractual performance. HMS may have contractual disputes with its customers arising from differing interpretations of contractual provisions that define the Company’s rights, obligations, scope of work or terms of payment, and with associated claims of liability for inaccurate or improper billing for reimbursement of contract fees, or for sanctions or damages for alleged performance deficiencies. Resolution of such disputes may involve litigation or may require that HMS accept some amount of loss or liability in order to avoid customer abrasion, negative marketplace perceptions and other disadvantageous results that could affect the Company’s business, financial condition, results of operations and cash flows. HMS records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not both probable and estimable, HMS does not establish an accrued liability. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events As of June 30, 2019, the Company held common stock of InstaMed Holdings, Inc. On July 24, 2019, JP Morgan Chase & Co acquired one hundred percent of InstaMed Holdings, Inc., resulting in the sale of the Company's investment. As a result, the Company received proceeds of $9.8 million for the sale of the investment in the subsequent period. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The Consolidated Financial Statements and accompanying Notes in this Form 10-Q are unaudited. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. These statements include all adjustments (which include only normal recurring adjustments, except as disclosed) that management considers necessary to present a fair statement of the Company’s results of operations, financial position and cash flows. The results reported in these unaudited Consolidated Financial Statements should not be regarded as necessarily indicative of results that may be expected for the entire year. It is suggested that these unaudited Consolidated Financial Statements be read in conjunction with the Company’s consolidated financial statements and notes thereto as of and for the year ended December 31, 2018 , which were filed with the SEC as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”). The consolidated balance sheet as of December 31, 2018 included herein was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. |
Use of Estimates | The preparation of the Company’s unaudited Consolidated Financial Statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, primarily accounts receivable, intangible assets, fixed assets, accrued expenses, estimated liability for appeals, the disclosure of contingent liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting periods. The Company’s actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires most lessees to recognize a majority of the company’s leases on the balance sheet, which increases reported assets and liabilities. ASU 2016-02 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases ; and ASU No. 2018-11, Targeted Improvements . The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018 including interim periods within such annual reporting periods with early adoption permitted. The Company adopted this guidance on January 1, 2019, utilizing the optional transition method approach with an effective date of January 1, 2019. Consequently, financial information prior to the effective date was not updated and the disclosures required under the new standard are not provided for dates and periods prior to the effective date. There were no cumulative effect adjustments to retained earnings as part of adoption. The Company elected the available practical expedients, including the practical expedient to not separate lease and non-lease components of its leases and the short-term lease practical expedient. The Company’s internal control framework did not materially change, but existing internal controls were modified due to certain changes to business processes and systems to support the new leasing standard as necessary. As the Company previously disclosed, the standard had a material impact on its consolidated balance sheets, the most significant impact being the recognition of approximately $21.3 million of ROU assets and $26.3 million lease liabilities on the effective date, but there was no impact on its consolidated income statements. The Company continues to expect that any impact from its adoption of the new standard will be immaterial to its net income and its internal control framework for future periods. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting, (“ASU 2018-07”). ASU 2018-07 requires entities to apply similar accounting for share-based payment transactions with non-employees as with share-based payment transactions with employees. ASU 2018-07 is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this guidance on January 1, 2019. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”). ASU 2016-13 introduces the current expected credit losses methodology for estimating allowances for credit losses. ASU 2016-13 applies to all financial instruments carried at amortized cost and off-balance-sheet credit exposures not accounted for as insurance, including loan commitments, standby letters of credit, and financial guarantees. The new accounting standard does not apply to trading assets, loans held for sale, financial assets for which the fair value option has been elected, or loans and receivables between entities under common control. ASU 2016-13 is effective for public entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company continues to evaluate whether the adoption of this guidance will have any impact on the Company’s financial statements but does not expect that this guidance will have a material impact on the Company’s financial position, results of operations or internal control framework. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"). The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. ASU 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not been issued. Entities can choose to adopt the new guidance prospectively to eligible costs incurred on or after the date this guidance is first applied or retrospectively. This guidance is not expected to have a material impact on the Company’s financial position, results of operations or internal control framework. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company’s revenue disaggregated by solution for the three and six months ended June 30, 2019 and 2018 was as follows (in thousands) : Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Coordination of Benefits $ 105,094 $ 100,755 $ 210,945 $ 192,507 Payment Integrity 49,121 31,192 76,847 69,833 Population Health Management 13,967 14,844 28,343 25,876 Total $ 168,182 $ 146,791 $ 316,135 $ 288,216 The Company’s revenue disaggregated by market for the three and six months ended June 30, 2019 and 2018 was as follows ( in thousands ): Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Commercial $ 79,044 $ 80,493 $ 155,303 $ 152,278 State 65,180 58,815 126,922 113,435 Federal 23,958 7,483 33,910 22,503 Total $ 168,182 $ 146,791 $ 316,135 $ 288,216 |
Accounts Receivable and Accou_2
Accounts Receivable and Accounts Receivable Allowance (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, Net | The Company’s accounts receivable, net, consisted of the following (in thousands) : June 30, December 31, Accounts receivable $ 212,740 $ 220,455 Allowance (12,808 ) (13,683 ) Accounts receivable, net $ 199,932 $ 206,772 |
Activity in Allowance for Doubtful Accounts | The following is a summary of the activity in the accounts receivable allowance (in thousands) June 30, December 31, Balance--beginning of period $ 13,683 $ 14,799 Provision 7,717 20,453 Charge-offs (8,592 ) (21,569 ) Balance--end of period $ 12,808 $ 13,683 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets consisted of the following ( in thousands, except for weighted average amortization period ): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period in Years June 30, 2019 Customer relationships $ 68,290 $ (18,936 ) $ 49,354 12.5 Intellectual property 21,700 (8,606 ) 13,094 3.7 Trade names 136 (128 ) 8 0.2 Restrictive covenants 133 (126 ) 7 0.2 Total $ 90,259 $ (27,796 ) $ 62,463 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period in Years December 31, 2018 Customer relationships $ 156,790 $ (104,740 ) $ 52,050 12.8 Intellectual property 21,700 (6,670 ) 15,030 4.1 Trade names 16,246 (16,215 ) 31 0.7 Restrictive covenants 263 (234 ) 29 0.7 Total $ 194,999 $ (127,859 ) $ 67,140 |
Amortization Expense of Intangible Assets | Amortization expense of intangible assets is expected to approximate the following (in thousands): Year ending December 31, Amortization 2019 (excluding the six months ended June 30, 2019) $ 4,568 2020 7,613 2021 7,197 2022 7,197 2023 4,822 Thereafter 31,066 Total $ 62,463 |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses, and Other Liabilities | Accounts payable, accrued expenses and other liabilities consisted of the following (in thousands) : June 30, December 31, Accounts payable, trade $ 11,774 $ 12,394 Accrued compensation and other 26,735 42,833 Accrued operating expenses 26,301 19,675 Current portion of lease liabilities 6,520 — Total accounts payable, accrued expenses and other liabilities $ 71,330 $ 74,902 |
Estimated Liability for Appea_2
Estimated Liability for Appeals (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Activity in the Estimated Liability for Appeals | The following roll-forward summarizes the activity in Estimated liability for appeals ( in thousands ): Original RAC contract RAC 4 contract Commercial contracts Total Balance at December 31, 2018 $ 19,380 $ 20 $ 2,323 $ 21,723 Provision — 604 5,135 5,739 Appeals found in providers favor — (309 ) (4,825 ) (5,134 ) Release of liability (19,380 ) — — (19,380 ) Balance at June 30, 2019 $ — $ 315 $ 2,633 $ 2,948 |
Credit Agreement (Tables)
Credit Agreement (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Expense and Commitment Fees | Interest expense and the commitment fees on the unused portion of the Company’s Amended Revolving Facility were as follows ( in thousands ): Three Months Ended Six Months Ended 2019 2018 2019 2018 Interest expense $ 2,524 $ 2,627 $ 5,050 $ 4,697 Commitment fees 160 239 316 477 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table reconciles the basic to diluted weighted average common shares outstanding using the treasury stock method (in thousands, except per share amounts) : Three Months Ended Six Months Ended 2019 2018 2019 2018 Net income/(loss) $ 29,100 $ (3,367 ) $ 48,742 $ 3,024 Weighted average common shares outstanding-basic 85,956 83,231 86,524 83,222 Plus: net effect of dilutive stock options and restricted stock units 1,902 — 2,319 1,615 Weighted average common shares outstanding-diluted 87,858 83,231 88,843 84,837 Net income/(loss) per common share -- basic $ 0.34 $ (0.04 ) $ 0.56 $ 0.04 Net income/(loss) per common share -- diluted $ 0.33 $ (0.04 ) $ 0.55 $ 0.04 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Total Stock-Based Compensation Expense | Total stock-based compensation expense in the Company’s unaudited Consolidated Statements of Income related to the Company’s long-term incentive award plans was as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Cost of services-compensation $ 2,720 $ 1,673 $ 6,843 $ 4,236 Selling, general and administrative 2,082 3,041 8,938 9,972 Total $ 4,802 $ 4,714 $ 15,781 $ 14,208 |
Summary of Stock Option Activity | ly. Presented below is a summary of stock option activity for the six months ended June 30, 2019 ( in thousands, except for weighted average exercise price and weighted average remaining contractual terms ): Number of Options Weighted Average Exercise Price Weighted Average- Remaining Contractual Terms Aggregate Intrinsic Value Outstanding balance at December 31, 2018 4,402 $ 17.07 Granted 622 38.72 Exercised (1,686 ) 16.01 Forfeitures (140 ) 19.31 Expired — — Outstanding balance at June 30, 2019 3,198 $ 21.79 6.86 $ 37,514 Expected to vest at June 30, 2019 1,045 $ 28.12 8.98 $ 7,507 Exercisable at June 30, 2019 1,728 $ 16.91 5.13 $ 26,745 |
Schedule of Estimated Fair Value of Stock Option Grants | HMS estimated the fair value of each stock option grant on the date of grant using a Black-Scholes option pricing model and weighted–average assumptions set forth in the following table: Six Months Ended 2019 2018 Expected dividend yield 0 % 0 % Risk-free interest rate 2.5 % 2.7 % Expected volatility 40.9 % 42.4 % Expected life (years) 6.35 6.00 |
Summary of Restricted Stock Units Activity | Presented below is a summary of restricted stock units activity for the six months ended June 30, 2019 (in thousands, except for weighted average grant date fair value per unit): Number of Units Weighted Average Grant Date Fair Value per Unit Outstanding balance at December 31, 2018 1,488 $ 17.60 Granted 460 34.10 Vesting of restricted stock units, net of units withheld for taxes (403 ) 16.49 Units withheld for taxes (200 ) 16.49 Forfeitures (82 ) 18.92 Outstanding balance at June 30, 2019 1,263 $ 25.74 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the three and six months ended June 30, 2019 were as follows ( in thousands ): Three Months Ended Six Months Ended Operating lease cost $ 1,658 $ 3,314 Finance lease cost: Amortization of right-of-use assets $ 30 $ 38 Interest on lease liabilities $ 4 $ 5 Total finance lease cost $ 34 $ 43 |
Supplemental Cash Flow and Other Information Related to Leases | Supplemental cash flow and other information related to leases for the six months ended June 30, 2019 were as follows ( in thousands ): Six Months Ended Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 3,700 Operating cash flows from finance leases $ 4 Financing cash flows from finance leases $ 36 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 163 Finance leases $ 331 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases as of June 30, 2019 consisted of the following ( in thousands ): June 30, 2019 Operating Leases Operating lease right-of-use assets $ 18,940 Other current liabilities $ 6,301 Operating lease liabilities $ 17,245 Total operating lease liabilities $ 23,546 Finance Leases Other Assets $ 656 Other current liabilities $ 219 Other long-term liabilities $ 440 Total finance leases liabilities $ 659 |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows ( in thousands ): Year ended December 31, Operating Leases Finance Leases 2019 (excluding the six months ended June 30, 2019) $ 3,728 $ 123 2020 7,308 245 2021 5,605 245 2022 3,313 91 2023 3,073 — Thereafter 3,578 — Total lease payments 26,605 704 Less: Imputed interest 3,059 45 Total lease obligation $ 23,546 $ 659 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)Segment | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of business segments | Segment | 1 | |
Operating lease right-of-use assets | $ 18,940,000 | |
Total operating lease liabilities | $ 23,546,000 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption | $ 0 | |
Operating lease right-of-use assets | 21,300,000 | |
Total operating lease liabilities | $ 26,300,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Increase to opening retained earnings | $ 470,977 | $ 470,977 | $ 422,235 | |
Customer cash held in company bank accounts | 4,900 | 4,900 | ||
Deferred revenue | (5,900) | $ (5,900) | $ (5,600) | |
Revenue recognized | $ 2,800 | |||
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Term, Contracts With Customers | 1 year | |||
Amortization period | 1 year | 1 year | ||
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Term, Contracts With Customers | 3 years | |||
Accounting Standards Update 2014-09 | ||||
Disaggregation of Revenue [Line Items] | ||||
Increase to opening retained earnings | $ 1,100 | |||
Deferred revenue | $ 1,100 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues Disaggregated by Revenue Source and Market (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 168,182 | $ 146,791 | $ 316,135 | $ 288,216 |
Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 79,044 | 80,493 | 155,303 | 152,278 |
State | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 65,180 | 58,815 | 126,922 | 113,435 |
Federal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 23,958 | 7,483 | 33,910 | 22,503 |
Coordination of Benefits | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 105,094 | 100,755 | 210,945 | 192,507 |
Payment Integrity | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 49,121 | 31,192 | 76,847 | 69,833 |
Population Health Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 13,967 | $ 14,844 | $ 28,343 | $ 25,876 |
Accounts Receivable and Accou_3
Accounts Receivable and Accounts Receivable Allowance - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | |||
Accounts receivable | $ 212,740 | $ 220,455 | |
Allowance | (12,808) | (13,683) | $ (14,799) |
Accounts receivable, net | $ 199,932 | $ 206,772 |
Accounts Receivable and Accou_4
Accounts Receivable and Accounts Receivable Allowance - Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance--beginning of period | $ 12,808 | $ 13,683 | $ 14,799 |
Provision | 7,717 | 20,453 | |
Charge-offs | (8,592) | (21,569) | |
Balance--end of period | $ 12,808 | $ 13,683 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 90,259 | $ 194,999 |
Accumulated Amortization | (27,796) | (127,859) |
Net Carrying Amount | 62,463 | 67,140 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 68,290 | 156,790 |
Accumulated Amortization | (18,936) | (104,740) |
Net Carrying Amount | $ 49,354 | $ 52,050 |
Weighted Average Amortization Period in Years | 12 years 6 months | 12 years 9 months 18 days |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 21,700 | $ 21,700 |
Accumulated Amortization | (8,606) | (6,670) |
Net Carrying Amount | $ 13,094 | $ 15,030 |
Weighted Average Amortization Period in Years | 3 years 8 months 12 days | 4 years 1 month 6 days |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 136 | $ 16,246 |
Accumulated Amortization | (128) | (16,215) |
Net Carrying Amount | $ 8 | $ 31 |
Weighted Average Amortization Period in Years | 2 months 12 days | 8 months 12 days |
Restrictive covenants | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 133 | $ 263 |
Accumulated Amortization | (126) | (234) |
Net Carrying Amount | $ 7 | $ 29 |
Weighted Average Amortization Period in Years | 2 months 12 days | 8 months 12 days |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2019 (excluding the six months ended June 30, 2019) | $ 4,568 | |
2020 | 7,613 | |
2021 | 7,197 | |
2022 | 7,197 | |
2023 | 4,822 | |
Thereafter | 31,066 | |
Total | $ 62,463 | $ 67,140 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 2,300,000 | $ 6,700,000 | $ 4,677,000 | $ 12,774,000 |
Change in carrying amount of goodwill | $ 0 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities - Summary of Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accounts payable, trade | $ 11,774 | $ 12,394 |
Accrued compensation and other | 26,735 | 42,833 |
Accrued operating expenses | 26,301 | 19,675 |
Current portion of lease liabilities | 6,520 | |
Total accounts payable, accrued expenses and other liabilities | $ 71,330 | $ 74,902 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate, percent | 13.90% | 47.70% | |
Unrecognized tax benefits that would impact effective tax rate | $ 5.3 | $ 4.8 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 1 | $ 0.7 | |
Unrecognized tax benefits, income tax penalties and interest expense | 0.3 | $ 0.3 | |
Possible decrease in unrecognized tax benefits | $ 1.8 |
Estimated Liability for Appea_3
Estimated Liability for Appeals - Activity in Estimated Liability for Appeals (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Estimated Liability for Appeals [Roll Forward] | ||||
Balance at December 31, 2018 | $ 21,723 | |||
Provision | 5,739 | |||
Appeals found in providers favor | (5,134) | |||
Release of liability | $ (10,500) | $ (8,400) | (10,478) | $ (8,436) |
Balance at June 30, 2019 | 2,948 | 2,948 | ||
Original RAC contract | ||||
Estimated Liability for Appeals [Roll Forward] | ||||
Balance at December 31, 2018 | 19,380 | |||
Provision | 0 | |||
Appeals found in providers favor | 0 | |||
Release of liability | (19,400) | (19,380) | ||
Balance at June 30, 2019 | 0 | 0 | ||
RAC 4 contract | ||||
Estimated Liability for Appeals [Roll Forward] | ||||
Balance at December 31, 2018 | 20 | |||
Provision | 604 | |||
Appeals found in providers favor | (309) | |||
Release of liability | 0 | |||
Balance at June 30, 2019 | 315 | 315 | ||
Commercial contracts | ||||
Estimated Liability for Appeals [Roll Forward] | ||||
Balance at December 31, 2018 | 2,323 | |||
Provision | 5,135 | |||
Appeals found in providers favor | (4,825) | |||
Release of liability | 0 | |||
Balance at June 30, 2019 | $ 2,633 | $ 2,633 |
Estimated Liability for Appea_4
Estimated Liability for Appeals (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Product Liability Contingency [Line Items] | ||||
Release of liability | $ 10,500 | $ 8,400 | $ 10,478 | $ 8,436 |
Original RAC Contract | ||||
Product Liability Contingency [Line Items] | ||||
Release of liability | $ 19,400 | $ 19,380 |
Credit Agreement (Details)
Credit Agreement (Details) | 1 Months Ended | 6 Months Ended | ||
Dec. 31, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||||
Letters of credit outstanding, amount | $ 6,500,000 | |||
Amortization of interest expense | 282,000 | $ 282,000 | ||
Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||
Line of credit facility, expiration period | 5 years | |||
Debt agreement, maximum borrowing capacity | $ 120,000,000 | |||
Debt agreement, maximum borrowing capacity percent of consolidated EBITDA | 100.00% | |||
Credit Agreement | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.125% | |||
Credit Agreement | Swingline Loans | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 | |||
Credit Agreement | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, covenant, interest coverage ratio | 5.25 | |||
Long-term line of credit, total | 240,000,000 | $ 240,000,000 | ||
Repayments of long-term lines of credit | 0 | |||
Debt issuance costs, net | 2,000,000 | $ 2,200,000 | ||
Amortization of interest expense | $ 300,000 | $ 300,000 | ||
Credit Agreement | Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Credit Agreement | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Credit Agreement | Revolving Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.375% | |||
Debt instrument, secured leverage ratio | 3 | |||
Credit Agreement | Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Credit Agreement | Revolving Credit Facility | Minimum | One-month LIBOR Rate | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.50% | |||
Credit Agreement | Revolving Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, covenant, interest coverage ratio | 3 | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |||
Credit Agreement | Revolving Credit Facility | Maximum | Through December 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, covenant, interest coverage ratio | 4.75 | |||
Credit Agreement | Revolving Credit Facility | Maximum | From and After January 2020 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, covenant, interest coverage ratio | 4.25 | |||
Credit Agreement | Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Credit Agreement | Revolving Credit Facility | Maximum | One-month LIBOR Rate | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.00% |
Credit Agreement - Summary of I
Credit Agreement - Summary of Interest Expense and Commitment Fees on Unused Portion of Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 2,524 | $ 2,627 | $ 5,050 | $ 4,697 |
Commitment fees | $ 160 | $ 239 | $ 316 | $ 477 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 29,100 | $ (3,367) | $ 48,742 | $ 3,024 |
Weighted average common shares outstanding-basic (in shares) | 85,956 | 83,231 | 86,524 | 83,222 |
Plus: net effect of dilutive stock options and restricted stock units (in shares) | 1,902 | 0 | 2,319 | 1,615 |
Weighted average common shares outstanding-diluted (in shares) | 87,858 | 83,231 | 88,843 | 84,837 |
Net income/(loss) per common share-basic (in dollars per share) | $ 0.34 | $ (0.04) | $ 0.56 | $ 0.04 |
Net income/(loss) per common share -- diluted (in dollars per share) | $ 0.33 | $ (0.04) | $ 0.55 | $ 0.04 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 588,379 | 2,552,862 | 394,886 | 2,738,783 |
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 227,604 | 626,341 | 151,279 | 106,501 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 4,802 | $ 4,714 | $ 15,781 | $ 14,208 |
Shares issued upon exercise of stock options | 242,723 | 87,230 | 1,686,408 | 151,034 |
Proceeds from stock options exercised | $ 3,900 | $ 2,200 | $ 26,998 | $ 2,390 |
Total intrinsic value of stock options exercised | 3,700 | 800 | 29,400 | $ 800 |
Unrecognized compensation cost related to stock options outstanding | 6,400 | $ 6,400 | ||
Recognition period for compensation cost related to stock options outstanding | 1 year 3 months 18 days | |||
Weighted-average grant date fair value per share of stock options | $ 13.82 | $ 7.52 | ||
Total income tax benefits | $ 9,561 | $ (242) | $ 7,890 | $ 2,761 |
Restricted stock units granted (in shares) | 51,546 | 62,259 | 459,985 | 761,083 |
Fair market value of restricted stock units | $ 1,600 | $ 900 | $ 15,700 | $ 12,700 |
Share-based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2,000 | 2,100 | 6,800 | 6,100 |
Total income tax benefits | 12,400 | 2,500 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,800 | $ 2,600 | $ 8,900 | $ 8,100 |
Recognition period for compensation cost related to stock options outstanding | 1 year 4 months 17 days | |||
Restricted stock units granted (in shares) | 460,000 | |||
Number of unvested restricted stock units | 1,003,051 | 1,003,051 | ||
Unrecognized compensation cost related to restricted stock units | $ 14,300 | $ 14,300 | ||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted vesting period | 1 year | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted vesting period | 4 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 4,802 | $ 4,714 | $ 15,781 | $ 14,208 |
Cost of services-compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2,720 | 1,673 | 6,843 | 4,236 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2,082 | 3,041 | 8,938 | 9,972 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,800 | $ 2,600 | $ 8,900 | $ 8,100 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Options | ||||
Number of options, outstanding, beginning balance (in shares) | 4,402,000 | |||
Number of options, granted (in shares) | 622,000 | |||
Number of options, exercised (in shares) | (242,723) | (87,230) | (1,686,408) | (151,034) |
Number of options, forfeitures (in shares) | (140,000) | |||
Number of options, expired (in shares) | 0 | |||
Number of options, outstanding, ending balance (in shares) | 3,198,000 | 3,198,000 | ||
Number of options, expected to vest (in shares) | 1,045,000 | 1,045,000 | ||
Number of options, exercisable (in shares) | 1,728,000 | 1,728,000 | ||
Weighted Average Exercise Price | ||||
Weighted average exercise price outstanding, beginning balance (in dollars per share) | $ 17.07 | |||
Weighted average exercise price, granted (in dollars per share) | 38.72 | |||
Weighted average exercise price, exercised (in dollars per share) | 16.01 | |||
Weighted average exercise price, forfeitures (in dollars per share) | 19.31 | |||
Weighted average exercise price, expired (in dollars per share) | 0 | |||
Weighted average exercise price outstanding, beginning balance (in dollars per share) | $ 21.79 | 21.79 | ||
Weighted average exercise price, expected to vest (in dollars per share) | 28.12 | 28.12 | ||
Weighted average exercise price, exercisable (in dollars per share) | $ 16.91 | $ 16.91 | ||
Weighted Average- Remaining Contractual Terms | ||||
Weighted average contractual life outstanding, ending balance | 6 years 10 months 9 days | |||
Weighted average contractual life, vested and expected to vest | 8 years 11 months 23 days | |||
Weighted average contractual life, vested and exercisable | 5 years 1 month 17 days | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value outstanding, ending balance | $ 37,514 | $ 37,514 | ||
Aggregate intrinsic value, vested and expected to vest | 7,507 | 7,507 | ||
Aggregate intrinsic value, vested and exercisable | $ 26,745 | $ 26,745 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions Used in Valuation of Stock Options (Details) - Black Scholes Model - Share-based Payment Arrangement, Option | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 2.50% | 2.70% |
Expected volatility | 40.90% | 42.40% |
Expected life (years) | 6 years 4 months 6 days | 6 years |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Units (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Units | ||||
Granted (in shares) | 51,546 | 62,259 | 459,985 | 761,083 |
Restricted Stock Units (RSUs) | ||||
Number of Units | ||||
Outstanding, beginning balance (in shares) | 1,488,000 | |||
Granted (in shares) | 460,000 | |||
Vesting of restricted stock units, net of units withheld for taxes (in shares) | (403,000) | |||
Units withheld for taxes (in shares) | (200,000) | |||
Forfeitures (in shares) | (82,000) | |||
Outstanding, ending balance (in shares) | 1,263,000 | 1,263,000 | ||
Weighted Average Grant Date Fair Value per Unit | ||||
Outstanding, beginning balance (in dollars per share) | $ 17.60 | |||
Granted (in dollars per share) | 34.10 | |||
Vesting of restricted stock units, net of units withheld for taxes (in dollars per share) | 16.49 | |||
Units withheld for taxes (in dollars per share) | 16.49 | |||
Forfeitures (in dollars per share) | 18.92 | |||
Outstanding, ending balance (in dollars per share) | $ 25.74 | $ 25.74 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, weighted average remaining lease term | 4 years 6 months | |
Finance lease, weighted average remaining lease term | 3 years | |
Operating lease, weighted average discount rate, percent | 5.70% | |
Finance lease, weighted average discount rate, percent | 5.00% | |
Sublease income | $ 1.1 | $ 0.8 |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, renewal term | 10 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,658 | $ 3,314 |
Finance least cost: Amortization of right-of-use assets | 30 | 38 |
Finance lease cost: Interest on lease liabilities | 4 | 5 |
Total finance lease cost | $ 34 | $ 43 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow and Other Information Related to Leases (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 3,700 |
Financing cash flows from finance leases | 4 |
Financing cash flows from finance leases | 36 |
Right-of-use assets obtained in exchange for new lease liabilities: | |
Operating leases | 163 |
Finance leases | $ 331 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases | |
Operating lease right-of-use assets | $ 18,940 |
Other current liabilities | 6,301 |
Operating lease liabilities | 17,245 |
Total operating lease liabilities | 23,546 |
Finance Leases | |
Other Assets | 656 |
Other current liabilities | 219 |
Other long-term liabilities | 440 |
Total finance leases liabilities | $ 659 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases | |
2019 (excluding the six months ended June 30, 2019) | $ 3,728 |
2020 | 7,308 |
2021 | 5,605 |
2022 | 3,313 |
2023 | 3,073 |
Thereafter | 3,578 |
Total lease payments | 26,605 |
Less: Imputed interest | 3,059 |
Total operating lease liabilities | 23,546 |
Finance Leases | |
2019 (excluding the six months ended June 30, 2019) | 123 |
2020 | 245 |
2021 | 245 |
2022 | 91 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 704 |
Less: Imputed interest | 45 |
Total finance leases liabilities | $ 659 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) $ in Millions | Nov. 03, 2017USD ($) | Jul. 31, 2012cause_of_action | Jun. 30, 2019USD ($) |
Loss Contingencies [Line Items] | |||
Loss contingency, damages awarded, value | $ | $ 60 | ||
Payments for legal settlements | $ | $ 20 | ||
Breach of Contract | |||
Loss Contingencies [Line Items] | |||
Causes of action | 2 | ||
Breach of Implied Covenant | |||
Loss Contingencies [Line Items] | |||
Causes of action | 1 | ||
Dismissed | Breach of Contract | |||
Loss Contingencies [Line Items] | |||
Causes of action | 1 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Details) - Subsequent Event $ in Millions | Jul. 24, 2019USD ($) |
Subsequent Event [Line Items] | |
Proceeds from sale of investment | $ 9.8 |
InstaMed Holdings, Inc. | |
Subsequent Event [Line Items] | |
Percentage acquired | 100.00% |
Uncategorized Items - hmsy-2019
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,427,000 |