Performant Healthcare (PHLT) 10-K 1 Apr 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 29, 2019	Jun. 30, 2018
Document Documentand Entity Information [Abstract]
Entity Registrant Name	Performant Financial Corporation
Trading Symbol	PFMT
Entity Central Index Key	0001550695
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		53,146,350
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 55,076,384

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 5,462	$ 21,731
Restricted cash	1,813	1,788
Trade accounts receivable, net of allowance for doubtful accounts of $22 and $35, respectively	20,879	12,494
Prepaid expenses and other current assets	3,420	12,678
Income tax receivable	179	6,839
Total current assets	31,753	55,530
Property, equipment, and leasehold improvements, net	22,255	20,944
Identifiable intangible assets, net	1,160	4,864
Goodwill	81,572	81,572
Deferred income taxes	0	468
Other assets	1,019	1,058
Total assets	137,759	164,436
Current liabilities:
Current maturities of notes payable to related party, net of unamortized discount and debt issuance costs of $126 and $171, respectively	2,224	2,029
Accrued salaries and benefits	5,759	4,569
Accounts payable	1,402	1,518
Other current liabilities	3,414	3,347
Deferred revenue	1,078	0
Estimated liability for appeals	210	18,817
Net payable to client	0	12,800
Total current liabilities	14,087	43,080
Notes payable to related party, net of current portion and unamortized discount and debt issuance costs of $2,345 and $3,245, respectively	41,105	38,555
Deferred income taxes	22	0
Earnout payable	1,936	0
Other liabilities	3,383	2,476
Total liabilities	60,533	84,111
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.0001 par value. Authorized, 500,000 shares at December 31, 2018 and 2017, respectively; issued and outstanding, 52,999 and 51,085 shares at December 31, 2018 and 2017, respectively	5	5
Additional paid-in capital	77,370	72,459
Retained earnings (accumulated deficit)	(149)	7,861
Total stockholders’ equity	77,226	80,325
Total liabilities and stockholders’ equity	$ 137,759	$ 164,436

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 22	$ 35
Current unamortized debt issuance costs	126	171
Noncurrent unamortized debt issuance costs	$ 2,345	$ 3,245
Common stock, par value (USD per share)	$ 0.0001	$ 0.0001
Common stock authorized (shares)	500,000,000	500,000,000
Common stock issued (shares)	52,999,000	51,085,000
Common stock outstanding (shares)	52,999,000	51,085,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Revenues	$ 155,668	$ 132,049	$ 141,360
Operating expenses:
Salaries and benefits	96,144	82,191	78,863
Other operating expenses	58,333	55,863	54,985
Impairment of goodwill and intangible assets	2,988	1,081	15,438
Total operating expenses	157,465	139,135	149,286
Loss from operations	(1,797)	(7,086)	(7,926)
Interest expense	(4,699)	(6,972)	(7,897)
Interest income	28	4	0
Loss before provision for (benefit from) income taxes	(6,468)	(14,054)	(15,823)
Provision for (benefit from) income taxes	1,542	(1,325)	(4,370)
Net loss	$ (8,010)	$ (12,729)	$ (11,453)
Net loss per share attributable to common shareholders (see Note 1)
Basic (USD per share)	$ (0.15)	$ (0.25)	$ (0.23)
Diluted (USD per share)	$ (0.15)	$ (0.25)	$ (0.23)
Weighted average shares (see Note 1)
Basic (shares)	52,064	50,688	50,038
Diluted (shares)	52,064	50,688	50,038

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (8,010)	$ (12,729)	$ (11,453)
Other comprehensive loss:
Foreign currency translation adjustment	(32)	(3)	21
Comprehensive loss	$ (8,042)	$ (12,732)	$ (11,432)

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)
Balance at beginning of period (shares) at Dec. 31, 2015		49,479
Balance at beginning of period at Dec. 31, 2015	$ 93,856	$ 5	$ 61,808	$ 32,043
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued under stock plans, net of shares withheld for employee taxes (shares)		755
Common stock issued under stock plans, net of shares withheld for employee taxes	71		71
Stock-based compensation expense	4,713		4,713
Income tax (shortfall) from employee stock awards	(963)		(963)
Other comprehensive income	21		21
Net loss	(11,453)			(11,453)
Balance at end of period (shares) at Dec. 31, 2016		50,234
Balance at end of period at Dec. 31, 2016	86,245	$ 5	65,650	20,590
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued under stock plans, net of shares withheld for employee taxes (shares)		851
Common stock issued under stock plans, net of shares withheld for employee taxes	(230)		(230)
Stock-based compensation expense	3,740		3,740
Recognition of warrant issued in debt financing	3,302		3,302
Other comprehensive income	(3)		(3)
Net loss	(12,729)			(12,729)
Balance at end of period (shares) at Dec. 31, 2017		51,085
Balance at end of period at Dec. 31, 2017	80,325	$ 5	72,459	7,861
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued under stock plans, net of shares withheld for employee taxes (shares)		914
Common stock issued under stock plans, net of shares withheld for employee taxes	(476)		(476)
Stock-based compensation expense	2,750		2,750
Shares issued in conjunction with agreement to purchase Premiere Credit of North America, LLC. (shares)		1,000
Shares issued in conjunction with agreement to purchase Premiere Credit of North America, LLC.	2,420		2,420
Recognition of warrant issued in debt financing	249		249
Other comprehensive income	(32)		(32)
Net loss	(8,010)			(8,010)
Balance at end of period (shares) at Dec. 31, 2018		52,999
Balance at end of period at Dec. 31, 2018	$ 77,226	$ 5	$ 77,370	$ (149)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net loss	$ (8,010)	$ (12,729)	$ (11,453)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Loss on disposal of assets	44	67	12
Release of net payable to client related to contract termination	(9,860)	0	0
Release of estimated liability for appeals due to termination of contract	(18,531)	0	0
Derecognition of subcontractor receivable for appeals due to termination of contract	5,535	0	0
Derecognition of subcontractor receivable for overturned claims	1,536	0	0
Provision for doubtful account for subcontractor receivable	1,868	0	0
Impairment of goodwill and intangible assets	2,988	1,081	15,438
Depreciation and amortization	10,234	10,888	13,380
Deferred income taxes	490	3,733	(6,912)
Stock-based compensation	2,750	3,740	4,713
Interest expense from debt issuance costs	1,221	1,336	1,264
Earnout mark-to-market	(218)	0	0
Write-off of unamortized debt issuance costs	0	1,049	468
Interest expense paid in kind	0	331	0
Changes in operating assets and liabilities:
Trade accounts receivable	(6,695)	(1,010)	6,481
Prepaid expenses and other current assets	895	8	247
Income tax receivable	6,660	(4,812)	(2,027)
Other assets	69	(148)	(740)
Accrued salaries and benefits	220	254	(446)
Accounts payable	(445)	890	(301)
Deferred revenue and other current liabilities	(657)	(1,062)	(656)
Income taxes payable	0	0	(895)
Estimated liability for appeals	(76)	(488)	187
Net payable to client	(2,940)	(274)	(1,326)
Other liabilities	773	120	350
Net cash provided by (used in) operating activities	(12,149)	2,974	17,784
Cash flows from investing activities:
Purchase of property, equipment, and leasehold improvements	(7,645)	(7,259)	(7,866)
Premiere Credit of North America, LLC cash acquired	2,285	0	0
Net cash used in investing activities	(5,360)	(7,259)	(7,866)
Cash flows from financing activities:
Repayment of notes payable	(2,200)	(55,513)	(39,076)
Debt issuance costs paid	(27)	(934)	(1,181)
Taxes paid related to net share settlement of stock awards	(663)	(385)	(266)
Proceeds from exercise of stock options	187	155	337
Borrowings from notes payable	4,000	44,000	0
Income tax benefit from employee stock awards	0	0	103
Payment of purchase obligation	0	0	(554)
Net cash provided by (used in) financing activities	1,297	(12,677)	(40,637)
Effect of foreign currency exchange rate changes on cash	(32)	(3)	21
Net decrease in cash, cash equivalents and restricted cash	(16,244)	(16,965)	(30,698)
Cash, cash equivalents and restricted cash at beginning of year	23,519	40,484	71,182
Cash, cash equivalents and restricted cash at end of year	7,275	23,519	40,484
Non-cash investing activities:
Recognition of contingent consideration in acquisition	2,154	0	0
Non-cash financing activities:
Recognition of shares issued in acquisition	2,420	0	0
Recognition of warrant issued in debt financing	249	3,302	0
Supplemental disclosures of cash flow information:
Cash paid (received) for income taxes	(6,228)	(353)	5,273
Cash paid for interest	3,477	4,284	6,156
Reconciliation of the consolidated statements of cash flows to the consolidated balance sheets:
Total cash, cash equivalents and restricted cash at end of period	$ 23,519	$ 40,484	$ 71,182

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies (a) Organization and Nature of Business Performant Financial Corporation (the "Company" or "we") is a leading provider of technology-enabled recovery and analytics services in the United States. The Company's services help identify, restructure and recover delinquent or defaulted assets and improper payments for both government and private clients in a broad range of markets. Clients of the Company typically operate in complex and regulated environments and contract for their recovery needs in order to reduce losses on defaulted student loans, improper healthcare payments and delinquent state tax and federal treasury receivables. The Company generally provides our services on an outsourced basis; handling many or all aspects of the clients’ recovery processes. The Company’s consolidated financial statements include the operations of Performant Financial Corporation (Performant), its wholly-owned subsidiaries Premiere Credit of North America, LLC (Premiere) and Performant Business Services, Inc., and its wholly-owned subsidiaries Performant Recovery, Inc. (Recovery), Performant Technologies, Inc., and Performant Europe Ltd. Effective August 13, 2012, we changed the name of our wholly-owned subsidiary from DCS Business Services, Inc. (DCSBS) to Performant Business Services, Inc., and DCSBS’ wholly-owned subsidiaries from Diversified Collection Services, Inc. (DCS), and Vista Financial, Inc. (VFI), to Performant Recovery, Inc., and Performant Technologies, Inc., respectively. Performant is a Delaware corporation headquartered in California and was formed in 2003. Premiere is an Indiana limited liability company acquired by Performant on August 31, 2018. Performant Business Services, Inc. is a Nevada corporation founded in 1997. Recovery is a California corporation founded in 1976. Performant Technologies, Inc. is a California corporation that was formed in 2004. The Company is managed and operated as one business, with a single management team that reports to the Chief Executive Officer. (b) Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. The Company consolidates entities in which it has controlling financial interest, and as of December 31, 2018 , all of the Company’s subsidiaries are 100% owned. All significant intercompany balances and transactions have been eliminated in consolidation. (c) Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of the consolidated financial statements in conformity with U.S. GAAP, requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, primarily accounts receivable, intangible assets, goodwill, estimated liability for appeals, earnout payable, other liabilities, deferred income taxes and income tax expense, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Our actual results could differ from those estimates. (d) Acquisition of Premiere Credit of North America On August 31, 2018, the Company completed its acquisition of Premiere. Premiere is a leading provider of recovery services to government, student loan and commercial clients with approximately 330 employees located in Indianapolis and Nashville. As part of the transaction, Performant has expanded its existing commercial relationship with the ECMC Group (“ECMC”) which was the former parent of Premiere. ECMC is also the lender under our existing credit agreement. The Company funded the acquisition with issuance of 1,000,000 Performant shares to ECMC and additional shares over the five -year period following the closing based on revenue associated with Premiere’s business in each year. At closing, Performant entered into a long-term agreement to be ECMC’s primary student loan recovery vendor. In addition, Performant also executed an amendment to its existing credit agreement with ECMC as discussed in Note 4. Consideration: After the September 30, 2018 financial statements were filed in the Form 10-Q, the Company received a final valuation report from a third-party valuation firm. After considering the results of that valuation report, the Company has estimated that the fair value of the earn-out consideration to be $2.2 million instead of the preliminary value of $1.9 million , an increase of $0.3 million . The estimated consideration of $4.3 million has been revised as follows: Preliminary Final (In thousands except per share amount) Initial shares consideration 1,000 1,000 Closing stock price per share $ 2.42 $ 2.42 2,420 2,420 Earn-out consideration 1,876 2,154 Total consideration $ 4,296 $ 4,574 The contingent earn-out consideration was valued based on a Monte Carlo simulation. Purchase price allocation: In accordance with U.S. GAAP, the total purchase price has been allocated to the tangible and intangible assets acquired based on management’s estimates of their fair values. The Company has adjusted the provisional amount of certain assets and liabilities as follows: Cash of $2.3 million increased by $0.6 million . The amount of $1.7 million presented in the September 30, 2018 financial statements initially netted a $0.6 million payment made to the seller shortly after the close against cash of $2.3 million . The increase in cash is offset by a corresponding $0.6 million increase in other current liabilities. In addition, Property, equipment and leasehold improvements increased $0.3 million from $2.9 million to $3.2 million . The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The purchase price allocation of $4.3 million at August 31, 2018 and the revised price, were as follows: Preliminary Final (In thousands) Cash and cash equivalents $ 1,669 $ 2,285 Trade accounts receivable, net 1,690 1,690 Other current assets 576 576 Property, equipment, and leasehold improvements, net 2,896 3,174 Customer relationship intangible asset 50 50 Other assets 34 34 Total identifiable assets acquired 6,915 7,809 Accounts Payable (328 ) (328 ) Accrued salaries and benefits (970 ) (970 ) Other current liabilities (1,186 ) (1,802 ) Other liabilities (135 ) (135 ) Net assets acquired $ 4,296 $ 4,574 The estimated fair value and useful life for the customer relationship intangible asset is as follows: Estimated Fair Value Estimated Useful Life (In thousands) (In years) Customer Relationships $ 50 4 The fair value of the customer relationship and the amortization method were determined using the excess earnings method that relies on projected future net cash flows including key assumptions for the customer attrition rate and discount rate. The estimated weighted average useful life reflects the time period and pattern that Performant expects for projected benefits. The Company recorded $0.2 million of acquisition-related costs in other operating expenses. The results of Premiere have been included in the Company’s consolidated financial statements from the date of acquisition. Revenues from Premiere included in the Company’s results for the twelve months ended December 31, 2018 were $7.0 million . Net loss for Premiere included in the Company’s results for the twelve months ended December 31, 2018 was $1.4 million . Pro forma information: The following table presents selected unaudited pro forma information for the Company assuming the acquisition of Premiere had occurred as of January 1, 2017. This pro forma information does not purport to present what the Company’s actual results would have been if the acquisition occurred as of the date indicated or what such results would be for any future periods. Unaudited Year Ended December 31, 2018 2017 (In thousands, except per share amounts) Total revenues $ 170,893 $ 160,759 Net loss $ (12,672 ) $ (15,200 ) Earnings per share: Basic $ (0.24 ) $ (0.30 ) Diluted $ (0.24 ) $ (0.30 ) (e) Cash and Cash Equivalents Cash and cash equivalents include demand deposits and highly liquid debt investments with original maturities of three months or less when purchased. These investments can include money market funds that invest in U.S. government and agency obligations, certificates of deposit, bankers’ acceptances, and commercial paper. The Company collects monies on behalf of its clients. Cash is often held on behalf of the clients in various trust accounts and is subsequently remitted to the clients based on contractual agreements. Cash held in these trust accounts for contracting agencies is not included in the Company’s assets (Note 11(a)). (f) Restricted Cash At December 31, 2018 and 2017 , restricted cash included in current assets on our consolidated balance sheet was $1.8 million and $ 1.8 million , respectively. In May 2017, the Company paid $7.5 million to the lenders and deposited $6.0 million into a segregated deposit account. On August 3, 2017, all of this $6.0 million of restricted cash was paid to the administrative agent for the benefit of the lenders under our prior credit agreement. In November 2017, the Company deposited $1.8 million in restricted cash as collateral for new letters of credit issued to replace letters of credit terminated under our prior credit agreement. (g) Property, Equipment, and Leasehold Improvements Property, equipment, and leasehold improvements are stated at cost, net of accumulated depreciation. Furniture and equipment are depreciated using the straight-line method over estimated useful lives ranging from 5 to 7 years. Buildings are depreciated using the straight-line method over 31.5 years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated life of the asset or the remaining term of the lease. Computer software and computer hardware are depreciated using the straight-line method over 3 years and 5 years, respectively. Maintenance and repairs are charged to expense as incurred. Improvements that extend the useful lives of assets are capitalized. When property is sold or retired, the cost and the related accumulated depreciation are removed from the consolidated balance sheet and any gain or loss from the transaction is included in the consolidated statements of operations. (h) Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price and related costs over the fair value assigned to the net assets of businesses acquired. Goodwill is not amortized, but instead is reviewed for impairment at least annually. Impairment is the condition that exists when the carrying amount of goodwill is not recoverable and its carrying amount exceeds its fair value. The Company performs its assessment of whether it is more likely than not that goodwill fair value is less than its carrying amount in November of each year to allow the Company additional time to evaluate its assessment prior to reporting its results. The Company performed a quantitative impairment assessment of whether it is more likely than not that goodwill fair value is less than its carrying amount as of November 30, 2018, and concluded that there was no need to impair goodwill. During the second quarter of 2017, the Company decided to wind down the activity of Performant Europe Ltd. Based on this decision, the Company concluded that the fair value of Performant Europe Ltd. was more likely than not less than its carrying amount. Accordingly, the goodwill balance related to the healthcare audit acquisition was $0.9 million , and we recognized a goodwill impairment loss of this amount as of June 30, 2017. The Company performed a qualitative assessment of whether it is more likely than not that goodwill fair value is less than its carrying amount as of November 30, 2017, and concluded that there was no need to perform an impairment test. Identifiable intangible assets consist of customer contracts and related relationships, a perpetual license, and covenants not to compete. Customer contracts and related relationships are amortized over their estimated useful life of 4 to 20 years. The perpetual license is amortized over its estimated useful life of 5 years. (i) Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets or intangibles may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. (j) System Developments The Company follows the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Subtopic 350-40, Internal-Use Software , which specifies that costs incurred during the application stage of development should be capitalized. All other costs are expensed as incurred. During 2018 , 2017 and 2016 , costs of $5.5 million , $5.1 million and $6.9 million respectively, were capitalized for projects in the application stage of development. Depreciation expense for completed projects during 2018, 2017 and 2016 were $6.8 million , $6.7 million and $5.8 million , respectively. (k) Debt Issuance Costs Debt issuance costs represent loan and legal fees paid in connection with the issuance of long-term debt. Debt issuance costs are deducted from current and non-current notes payable and are amortized to interest expense under the effective interest method in accordance with key terms of the notes as amended. (l) Revenues, Accounts Receivable, and Estimated Liability for Appeals The Company derives its revenues primarily from providing recovery services. Revenues are recognized when control of these services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company determines revenue recognition through the following steps: • Identification of the contract with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the performance obligations are satisfied The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company’s contracts generally contain a single performance obligation, delivered over time as a series of services that are substantially the same and have the same pattern of transfer to the client, as the promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For contracts with multiple performance obligations, the Company would allocate the contract’s transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct service in the contract. The Company determines the standalone selling prices by taking into consideration the value of the services being provided, the client type and how similar services are priced in other contracts on a standalone basis. The Company’s contracts are composed primarily of variable consideration. Fees earned under the Company’s recovery service contracts consist primarily of contingency fees based on a specified percentage of the amount the Company enables its clients to recover. The contingency fee percentage for a particular recovery depends on the type of recovery or claim facilitated. In certain contracts the Company can earn additional performance-based consideration determined based on its performance relative to the client’s other contractors providing similar services. Revenue from contingency fees earned upon recovery of funds is generally recognized as amounts are invoiced based on either the ‘as-invoiced’ practical expedient when such amounts reflect the value of the services completed to-date, or an output measure based on milestones which is used to measure progress of the satisfaction of its performance obligation. The Company estimates any performance-based variable consideration and recognizes such revenue over the performance period only if it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Under certain contracts, consideration can include periodic performance-based bonuses which can be awarded based on the Company’s performance under the specific contract. These performance-based awards are considered variable and may be constrained by the Company until there is not a risk of a material reversal. For contracts that contain a refund right, these amounts are considered variable consideration and the Company estimates its refund liability for each claim and recognizes revenue net of such estimate. The following table presents revenue disaggregated by category (in thousands) for the year ended December 31, 2018, 2017 and 2016. Year Ended December 31, 2018 2017 2016 (in thousands) Student Lending: Great Lakes Higher Education Guaranty Corporation $ 26,702 $ 46,090 $ 36,956 All Other Guaranty Agencies 39,796 48,215 72,609 Total of Student Lending 66,498 94,305 109,565 Healthcare: CMS RAC and MSP CRC (1) 41,859 1,437 5,733 Commercial 14,088 8,549 5,662 Total of Healthcare 55,947 9,986 11,395 Other (2) 33,223 27,758 20,400 Total Revenues $ 155,668 $ 132,049 $ 141,360 (1) Includes $ 28.4 million related to the termination of the 2009 CMS Region A contract (2) Represents outsource services, tax, and IRS The Company generally either applies the as-invoiced practical expedient where its right to consideration corresponds directly to its right to invoice its clients, or the variable consideration allocation exception where the variable consideration is attributable to one or more, but not all, of the services promised in a series of distinct services that form part of a single performance obligation. As such the Company has elected the optional exemptions related to the as-invoiced practical expedient and the variable consideration allocation exception whereby the disclosure of the amount of transaction price allocated to the remaining performance obligations is not required. The Company has applied the as-invoiced practical expedient or the variable consideration allocation exception to contracts with performance obligations that have an average remaining duration of less than a year. Revenue is recognized upon the collection of defaulted loan and debt payments. Loan rehabilitation revenue is recognized when the rehabilitated loans are sold (funded) by clients. Incentive revenue is recognized upon receipt of official notification of incentive award from customers. Under the Company’s Medicare Secondary Payer (MSP), Commercial Payment Center (CPC) contract with Centers for Medicare and Medicaid Services (CMS), the Company recognizes revenues when insurance companies or other responsible parties remit payment to reimburse CMS for claims for which they are responsible, and the remittance has been applied in the CMS database. Under the Company’s Medicare Recovery Audit Contractor (RAC), contract with CMS, the Company recognizes revenues when the healthcare provider has paid CMS for a given claim or has agreed to an offset against other claims by the provider. Under other healthcare contracts, the Company may recognize revenue upon delivering the results of claims audits, when sufficient reliable information is available to the Company for estimating the variable consideration earned, as it is a reasonable measure of the Company’s progress toward complete satisfaction of our performance obligation. Healthcare providers have the right to appeal a claim and may pursue additional appeals if the initial appeal is found in favor of CMS or other healthcare clients. Total estimated liability for appeals was $0.2 million and $18.8 million as of December 31, 2018 and 2017, respectively. This represents the Company’s best estimate of the probable amount of losses related to appeals of claims for which commissions were previously collected. As a result of the termination of the 2009 CMS Region A contract on January 31, 2018, the estimated liability for appeals related to CMS was $0.0 million as of December 31, 2018 as compared to $18.5 million as of December 31, 2017. For the year ended December 31, 2018 , the Company had 3 clients whose individual revenues exceeded 10% of the Company’s total revenues. The dollar amount and percent of total revenue of each of the 3 clients is summarized in the table below (in thousands): Rank 2018 Revenue Percent of 1 $41,859 26.9% 2 $26,908 17.3% 3 $26,702 17.2% For the year ended December 31, 2017 , the Company had 2 clients whose individual revenues exceeded 10% of the Company’s total revenues. The dollar amount and percent of total revenue of each of the 2 clients is summarized in the table below (in thousands): Rank 2017 Revenue Percent of 1 $43,189 32.7% 2 $27,367 20.7% For the year ended December 31, 2016 , the Company had 3 clients whose individual revenues exceeded 10% of the Company’s total revenues. The dollar amount and percent of total revenue of each of the 3 clients is summarized in the table below (in thousands): Rank 2016 Revenue Percent of 1 $33,243 23.5% 2 $23,196 16.4% 3 $21,949 15.5% Revenue from the largest three customers was 61% , 63% and 55% of total revenue in 2018 , 2017 and 2016 , respectively. Accounts receivable due from these three customers were 62% , 31% and 57% of total trade receivables at December 31, 2018 , 2017 and 2016 , respectively. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by (used in) operating activities in the consolidated statements of cash flows. The Company determines the allowance for doubtful accounts by specific identification. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts was $0.02 million and $0.04 million for December 31, 2018 and December 31, 2017 , respectively. The Company determined that it does not have any costs related to obtaining or fulfilling a contract that are recoverable and as such, these contract costs are expensed as incurred Contract assets are included in trade accounts receivable in the consolidated balance sheets. The Company has contract assets of $3.0 million and $1.6 million as of December 31, 2018 and December 31, 2017, respectively. The contract assets relate to the Company’s rights to consideration for services completed during the year ended December 31, 2018, and December 31, 2017, but not invoiced at the reporting date. Contract assets are recorded to accounts receivable when the rights become unconditional and amounts are invoiced. Contract liabilities are included in Deferred revenue in the consolidated balance sheets. The Company has contract liabilities of $1.1 million as of December 31, 2018 and none as of December 31, 2017. The Company’s contract liability relates to an advance recovery commission payment received from a customer during the first quarter of 2018, for which the Company anticipates revenue to be recognized as services are delivered. (m) Net Payable to Client The Company nets outstanding accounts receivable invoices from an audit and recovery contract against payables for overturned audits. The overturned audits are netted against current fees due on the invoice to the client when they are processed by the client’s system. As a result of the termination of the 2009 CMS Region A contract on January 31, 2018, the net payable to client balance was $0.0 million as of December 31, 2018. The net payable to client balance of $12.8 million at December 31, 2017, represents the excess of payables for overturned audits. (n) Prepaid Expenses and Other Current Assets The Company employed subcontractors to audit claims as part of the 2009 CMS Region A contract, and to the extent that audits by these subcontractors were overturned on appeal, the fees associated with such claims were contractually refundable to the Company. At December 31, 2018 , the receivable from subcontractor fees associated with estimated future overturns and for already overturned subcontractor audits was $0.0 million as a result of the termination of the 2009 CMS Region A contract on January 31, 2018. By comparison, at December 31, 2017 , the receivable associated with the estimated future overturns of subcontractor audits was $5.6 million , and the receivable for subcontractor fees for already overturned audits refundable to the Company once the Company refunds its fees to the client as prime contractor was $3.7 million . (o) Legal Expenses The Company recognizes legal fees related to litigation as they are incurred. (p) Comprehensive Income (Loss) The Company has a single component of comprehensive income (loss) on the consolidated statements of comprehensive income (Loss) related to foreign currency translation adjustments for its subsidiary Performant Europe Ltd. for the years ended December 31, 2018 , 2017 and 2016 . (q) Fair Value of Financial Instruments The Company’s consolidated financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, short-term debt and long-term debt. The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair values based on or due to their short-term maturities. The carrying values of short-term debt and long-term debt approximate fair value, in which their variable interest rates approximate market rates. (r) Income Taxes The Company accounts for income taxes under the asset-and-liability method. Deferred income tax assets and liabilities are recognized for future tax consequences attributable to differences between the carrying value of assets and liabilities for financial reporting purposes and for taxation purposes. Deferred income tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred income tax assets and liabilities is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Interest expense and penalties related to unrecognized tax benefits are recorded in income tax expense. (s) Stock Options The Company accounts for its employee stock-based compensation awards in accordance with FASB ASC Topic 718, Compensation – Stock Compensation . FASB ASC Topic 718 requires that all employee stock-based compensation is recognized as a cost in the consolidated financial statements and that for equity-classified awards, such cost is measured at the grant date fair value of the award. The Company estimates grant date fair value using the Black-Scholes-Merton option-pricing model. FASB ASC Topic 718 also requires that excess tax benefits recognized in equity related to stock option exercises are reflected as financing cash inflows. The Company recognized an income tax benefit resulting from the exercise of stock options in 2018 , 2017 and 2016 of $ 0.0 million , $ 0.0 million and $ 0.1 million , respectively. (t) Loss per Share For the years ended December 31, 2018 , 2017 , and 2016 , basic loss per share is calculated by dividing net loss attributable to common shareholders by the sum of the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares and dilutive common shares equivalents outstanding during the period. The Company’s common share equivalents consist of stock options, restricted stock units(RSUs), and performance stock units. When there is a loss in the period, dilutive common share equivalents are excluded from the calculation of diluted earnings per share, as their effect would be anti-dilutive. The following table reconciles the basic to diluted weighted average shares outstanding using the treasury stock method (shares in thousands): Years Ended December 31, 2018 2017 2016 Weighted average shares outstanding – basic 52,064 50,688 50,038 Dilutive effect of stock options — — — Weighted average shares outstanding – diluted 52,064 50,688 50,038 The following table shows the number of shares of common stock subject to options and restricted stock awards that were outstanding for the years ended December 31, 2018 , 2017 and 2016 , which were not included in the net loss per diluted share calculation because to do so would have been anti-dilutive: Years Ended December 31, 2018 2017 2016 Number of shares 4,828,278 4,604,218 3,996,701 (u) New Accounting Pronouncements Recently Adopted Accounting Standards In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” which provides guidance on the presentation of certain cash receipts and cash payments in the statement of cash flows in order to reduce diversity in existing practice. This new guidance was effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2017, and early adoption was permitted. This new standard required retrospective adoption, with a provision for impracticability. The Company adopted this guidance on January 1, 2018 and it did not have any impact on our consolidated financial statements. In May 2014, the FASB issued an ASU that amends the FASB ASC by creating a new Topic 606, "Revenue from Contracts with Customers". The new guidance supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition", and most industry-specific guidance on revenue recognition throughout the Industry Topics of the Codification. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply a five-step model for recognizing and measuring revenue from contracts with customers. In addition, an entity should disclose sufficient qualitative and quantitative information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Topic 606 as of January 1, 2018, utilizing the full retrospective method of transition. The Company applied Topic 606 retrospectively for all reporting periods presented before January 1, 2018, the date of the initial application. There was no impact of adopting Topic 606 on the Company’s 2017 and 2016 consolidated financial statements. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, “Leases”, which requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC Topic 840 Leases. The guidance is effective for our fiscal year beginning January 1, 2019 and should be applied using a modified retrospective approach. Early adoption is permitted. The Company plans to adopt this new standard in the first quarter of our fiscal 2019 with the cumulative effect of adoption recognized to retained earni

Property, Equipment, and Leaseh

Property, Equipment, and Leasehold Improvements	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Property, Equipment, and Leasehold Improvements	Property, Equipment, and Leasehold Improvements Property, equipment, and leasehold improvements consist of the following at December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Land $ 1,943 $ 1,122 Building and leasehold improvements 8,076 6,410 Furniture and equipment 6,248 5,763 Computer hardware and software 78,743 72,044 95,010 85,339 Less accumulated depreciation and amortization (72,755 ) (64,395 ) Property, equipment and leasehold improvements, net $ 22,255 $ 20,944 Depreciation and amortization expense of property, equipment and leasehold improvements was $9.5 million , $10 million and $9.6 million for the years ended December 31, 2018 , 2017 and 2016 , respectively.

Identifiable Intangible Assets

Identifiable Intangible Assets	12 Months Ended
	Dec. 31, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Identifiable Intangible Assets	Identifiable Intangible Assets Identifiable intangible assets consist of the following at December 31, 2018 and 2017 (in thousands): December 31, 2018 Gross Amounts Accumulated Amortization Net Amortizable intangibles: Customer contracts and related relationships $ 25,378 $ (24,264 ) $ 1,114 Less: Impairment of customer contracts and related relationships (2,988 ) 2,988 — Add: Customer relationship intangible asset 50 (4 ) 46 Perpetual license 3,250 (3,250 ) — Total intangible assets $ 25,690 $ (24,530 ) $ 1,160 December 31, 2017 Gross Amounts Accumulated Amortization Net Amortizable intangibles: Customer contracts and related relationships $ 23,209 $ (18,345 ) $ 4,864 Less: Impairment of customer contracts and related relationships (1,081 ) 1,081 — Perpetual license 3,250 (3,250 ) — Total intangible assets $ 25,378 $ (20,514 ) $ 4,864 For the years ended December 31, 2018 , 2017 and 2016 , amortization expense related to intangible assets amounted to $0.8 million , $0.9 million and $3.7 million , respectively. For the year ended December 31, 2018, an impairment expense of $3.0 million was recognized relating to the Great Lakes Higher Education Guaranty Corporation customer relationship and has been presented as a separate caption in the consolidated statements of operations. For the year ended December 31, 2017, an impairment expense of $0.1 million was recognized to account for the impairment charge in Performant Europe Ltd. due to the Company's decision to wind down this subsidiary. For the year ended December 31, 2016, an impairment expense of $15.4 million was recognized relating to the Department of Education customer relationship. The estimated aggregate amortization expense for each of the five following fiscal years is as follows (in thousands): Year Ending December 31, Amount 2019 $ 235 2020 235 2021 235 2022 232 2023 223 Thereafter — Total $ 1,160

Credit Agreement

Credit Agreement	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Credit Agreement	Credit Agreement On August 7, 2017, we, through our wholly-owned subsidiary Performant Business Services, Inc. (the "Borrower"), entered into a credit agreement with ECMC Group, Inc. (as amended, the “Credit Agreement”). Before the amendment described below, the Credit Agreement provided for a term loan facility in the initial amount of $44 million (the “Initial Term Loan”) and for up to $15 million of additional term loans (“Additional Term Loans”; and together with the Initial Term Loan, the “Loans”) which original Additional Term Loans were initially able to be drawn until the second anniversary of the funding of the Initial Term Loans, subject to the satisfaction of customary conditions. On August 11, 2017, the Initial Term Loan was advanced (the "Closing Date") and the proceeds were applied to repay all outstanding amounts under our prior credit agreement with Madison Capital Funding LLC as administrative agent ("the Prior Credit Agreement"). On August 31, 2018, we entered into Amendment No. 2 to the Credit Agreement to among other things (i) extend the maturity date of the Initial Term Loan and any Additional Term Loans by one year to August 2021, (ii) expand the Additional Term Loans commitment from $15 million to $25 million , (iii) extend the period during which Additional Term Loans can be borrowed by one year to August 2020, and (iv) relieve the Borrower from its obligation to comply with the financial covenants in the Credit Agreement during the six fiscal quarters following the Premiere acquisition. On October 15, 2018, the Company borrowed $4 million of the $25 million available as Additional Term Loans under the Credit Agreement. As of December 31, 2018, $45.8 million was outstanding under the Credit Agreement. On March 21, 2019, we entered into Amendment No. 3 to the Credit Agreement to among other things relieve the Borrower from its obligation to comply with the financial covenants in the Credit Agreement until the quarter ending June 30, 2020. We have the option to extend the maturity of the Loans for two additional one year periods, subject to the satisfaction of customary conditions. The Loans bear interest at the one-month LIBOR rate (subject to a 1% per annum floor) plus a margin which may vary from 5.5% per annum to 10.0% per annum based on our total debt to EBITDA ratio. Our annual interest rate at December 31, 2018, was 8.0% , and at December 31, 2017 was 8.6% . We are required to pay 5% of the original principal balance of the Loans annually in quarterly installments and to make mandatory prepayments of the Loans with a percentage of our excess cash flow which may vary between 75% and 0% depending on our total debt to EBITDA ratio and from the net cash proceeds of certain asset dispositions and debt not otherwise permitted under the Credit Agreement, in each case, subject to the lender's right to decline to receive such payments. The Loans may be voluntarily prepaid at any time, together with a prepayment premium of 1% for all voluntary prepayments prior to August 11, 2019. The Credit Agreement contains certain restrictive financial covenants which are not effective until the quarter ending June 30, 2020, at which point, we will be required to (1) achieve a minimum fixed charge coverage ratio of 1.0 to 1.0 through December 31, 2020, 1.25 to 1.0 through June 30, 2021, and 1.25 to 1.0 through June 30, 2022 if the maturity date of the Loans is extended until the fifth anniversary of the Closing Date and (2) maintain a maximum total debt to EBITDA ratio of 6.00 to 1.00 . The Credit Agreement also contains covenants that restrict the Company and its subsidiaries’ ability to incur certain types or amounts of indebtedness, incur liens on certain assets, make material changes in corporate structure or the nature of its business, dispose of material assets, engage in a change in control transaction, make certain foreign investments, enter into certain restrictive agreements, or engage in certain transactions with affiliates. The Credit Agreement also contains various customary events of default, including with respect to change of control of the Company or its ownership of the Borrower. The obligations under the Credit Agreement are secured by substantially all of our United States domestic subsidiaries' assets and are guaranteed by the Company and its United States domestic subsidiaries, other than the Borrower. As a result of our entry into our Credit Agreement, and the repayment of all amounts owed under our Prior Credit Agreement, we wrote off debt issuance costs related to our Prior Credit Agreement of approximately $1.0 million in August 2017. Scheduled payments under the Credit Agreement for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Amount 2019 $ 2,350 2020 2,400 2021 41,050 2022 — Total $ 45,800 The Company made principal payments of $2.2 million for the year ended December 31, 2018. In consideration for, and concurrently with, the extension of the Initial Term Loan in accordance with the terms of the Credit Agreement, we issued a warrant to the lender to purchase up to an aggregate of 3,863,326 shares of the Company’s common stock (representing approximately up to 7.5% of our diluted common stock as calculated using the “treasury stock” method as defined under U.S. GAAP for the most recent fiscal quarter), with an exercise price of $1.92 per share (the "Exercise Price"). In connection with the October 15, 2018 Additional Term Loan borrowing of $4 million , we were required to, and did, issue a warrant to the lender to purchase an aggregate of 309,066 shares of the Company's common stock at the same Exercise Price of $1.92 per share. Upon any further borrowing of the Additional Term Loans, we will be required to issue additional warrants at the same Exercise Price to purchase up to an aggregate of 77,267 additional shares of common stock (which represents approximately 0.15% of our diluted common stock calculated using the “treasury stock” method as defined under U.S. GAAP for the fiscal quarter ended June 30, 2017) for each $1.0 million of such Additional Term Loans. Similarly, upon our election to extend the maturity of the Loans for additional one year periods, we will be required to issue additional warrants at the same Exercise Price to purchase up to an aggregate of 515,110 additional shares of common stock for the first year's extension, and to purchase up to an aggregate of 772,665 additional shares of common stock for the second year's extension (which represent approximately 1.0% and 1.5% of our diluted common stock for the first and second years, respectively, calculated using the “treasury stock” method as defined under U.S. GAAP for the fiscal quarter ended June 30, 2017). The Company has accounted for these warrants as equity instruments since the warrants are indexed to the Company’s common shares and meet the criteria for classification in shareholders’ equity. The relative fair value of the warrants issued on August 11, 2017 and October 15, 2018, were approximately $3.3 million and $0.2 million , respectively, and were treated as a discount to the associated debt. These amounts are being amortized to interest expense under the effective interest method over the life of the loans. The Company estimated the value of the warrants using the Black-Scholes-Merton model. The key assumptions used to value the warrants are as follows: August 2017 Issuance October 2018 Issuance Exercise price $1.92 $1.92 Share price on date of issuance $1.85 $1.93 Volatility 50.0% 55.0% Risk-free interest rate 1.83% 3.01% Expected dividend yield —% —% Contractual term (in years) 5 5 In addition, at the closing of the Initial Term Loan, the Company paid transaction costs of $0.6 million , which were recorded as a discount on the debt and are being amortized to interest expense using the effective interest method over the life of the Loans, which is a period of 48 months . Outstanding debt obligations are as follows (in thousands): December 31, 2018 Principal amount $ 45,800 Less: unamortized discount and debt issuance costs (2,471 ) Loan payable, net of unamortized discount and debt issuance costs 43,329 Less: current maturities (2,224 ) Long-term loan payable, net of current maturities $ 41,105

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions As discussed in Note 1(d), in August of 2018, the Company purchased Premiere from ECMC, with the purchase consideration including the issuance of 1,000,000 shares of Company common stock to ECMC and a commitment to issue ECMC additional shares of common stock as part of an earn-out agreement. Additionally, as discussed in Note 4, since August 2017, ECMC has served as a lender to the Company with a Credit Agreement initially funded in August 2017 at $44 million , and a balance outstanding of $45.8 million at December 31, 2018. In connection with the Credit Agreement, the Company has issued ECMC warrants to purchase 4,172,392 shares of common stock through December 31, 2018, and ECMC’s beneficial ownership percentage on that date was approximately 9.0% . The Company has a relationship with ECMC as a customer, with revenues of $15.5 million in 2018. Given the breadth of ECMC’s involvement with the Company as of December 31, 2018, we have concluded that ECMC is a related party for purposes of financial statement presentation and disclosure.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company has entered into various non-cancelable operating lease agreements for certain of the Company's office facilities and equipment with original lease periods expiring between 2018 and 2025. Certain of these arrangements have free rent periods and /or escalating rent payment provisions, and the Company recognizes rent expense under such arrangements on a straight-line basis. In October 2017, the Company renewed our lease agreements for office space for approximately 50,000 square feet in Livermore, California. In December 2017, the Company entered two new lease agreements for office space for approximately 26,000 square feet in San Angelo, Texas and 32,000 square feet in Sunrise, Florida. Future minimum rental commitments under non-cancelable leases as of December 31, 2018 are as follows (in thousands): Year Ending December 31, Amount 2019 $ 3,427 2020 3,393 2021 2,514 2022 1,901 2023 800 Thereafter 1,390 Total $ 13,425 Lease expense was $3.9 million , $2.7 million and $2.8 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Deferred rent is included in other liabilities on the consolidated balance sheets and was $1.2 million and $0.7 million as of December 31, 2018 and 2017, respectively.

Capital Stock

Capital Stock	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Capital Stock	Capital Stock Since August 15, 2012, the authorized common stock has been 500,000,000 shares and the authorized preferred stock has been 50,000,000 shares.

Stock-based Compensation

Stock-based Compensation	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock-based Compensation (a) Stock Options Under the terms of the Performant Financial Corporation 2007 Stock Option Plan (2007 Plan), incentive and nonqualified stock options may be granted for up to 4,000,000 shares of the Company’s authorized but unissued common stock. Options granted under the 2007 Plan generally vest over a five -year period. The 2007 Plan was terminated on the completion of its initial public offering in August 2012. No shares of the Company's common stock are available under our 2007 Plan other than for satisfying exercises of stock options granted under this plan prior to termination. The terms of the Performant Financial Corporation 2012 Stock Incentive Plan (2012 Plan) provide for the granting of incentive stock options within the meaning of Section 422 of the Internal Revenue Code (the Code) to employees and the granting of nonstatutory stock options, restricted stock, stock appreciation rights, stock unit awards and cash-based awards to employees, non-employee directors and consultants. The Company has reserved 10,550,000 shares of common stock under the 2012 Plan. Options granted under the 2012 Plan generally vest over periods of four or five years. The exercise price of incentive stock options shall generally not be less than 100% of the fair market value of the common stock subject to the option on the date that the option is granted. The exercise price of nonqualified stock options shall generally not be less than 85% of the fair market value of the common stock subject to the option on the date that the option is granted. Options issued under the two plans have a maximum term of 10 years and vest over schedules determined by the Company's Board of Directors. Total stock-based compensation expense charged as salaries and benefits expense in the consolidated statements of operations was $2.8 million , $3.7 million and $4.7 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. The following table sets forth a summary of the Company's stock option activity for the years ended December 31,2018 and 2017: Outstanding Options Weighted average exercise price per share Weighted average remaining contractual life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 01, 2017 3,506,529 7.32 5.04 Granted — — Forfeited (260,175 ) 5.4 Exercised (310,156 ) 0.50 Outstanding at December 31, 2017 2,936,198 8.21 4.48 Granted — — Forfeited (208,346 ) 8.96 Exercised (268,750 ) 0.69 Outstanding December 31, 2018 2,459,102 $ 8.97 3.25 $ 273 Vested, exercisable, and expected to vest (1) at December 31, 2018 2,458,640 $ 8.97 3.24 $ 273 Exercisable at December 31, 2018 2,449,857 $ 8.99 3.23 $ 271 (1) Options expected to vest reflect an estimated forfeiture rate. There were no stock options granted during the years ended December 31, 2018 and December 31, 2017. The aggregate intrinsic value of our stock options (the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the option) exercised during the years ended December 31, 2018 and 2017 was $0.5 million and $0.4 million , respectively. At December 31, 2018 and 2017 , there were $0.01 million and $0.3 million , respectively, of unrecognized stock-based compensation expense related to non-vested stock-based compensation arrangements, which the Company expects to recognize over a weighted-average period of 0.41 years as stock-based compensation expense. Net cash proceeds from the exercise of stock options were $0.2 million and $0.2 million during 2018 and 2017 , respectively. The fair value of each option grant was estimated using the Black-Scholes-Merton option pricing model. Expected volatilities are calculated based on the historical volatility data of comparable peer companies over a term comparable to the expected term of the options issued. The expected term of the award is determined based on the average of the vesting term and the contractual term. Management monitors share option exercise and employee termination patterns to estimate forfeiture rates within the valuation model. We estimated the fair value of options granted using a Black-Scholes-Merton option pricing model with the following assumptions: For the Years Ended December 31, 2018 2017 2016 Expected volatility —% —% 51.5% Expected dividends —% —% —% Expected term (years) — — 6.1 Risk-free interest rate —% —% 1.4% Weighted-average estimated fair value of options granted during the year $— $— $0.86 Valuation and Amortization Method – The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option pricing model. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Stock options typically have a ten year life from the grant date and vesting periods of four to five years. The fair value of the Company’s common stock is based on the market price of the stock on the date of grant. Expected Term – The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding. For awards granted subject only to service vesting requirements, the Company utilizes the simplified method under the provisions of FASB ASC 718-10-S99-1 for estimating the expected term of the stock-based award. Expected Volatility – There were no stock options granted during the year ended December 31, 2018 and December 31, 2017. If stock options had been granted, as of December 31, 2018, expected volatility is comprised of a 100% company weighting. Before 2018, the Company calculated the expected volatility using a composite made up of comparable peer companies. As of December 31, 2017, an approximate 88% company weighting would have been used. Expected Dividend – The Company has never paid dividends on its common shares and currently does not intend to do so. Accordingly, the dividend yield percentage is zero for all periods. Risk-Free Interest Rate – The risk-free interest rate used in the Black-Scholes-Merton valuation method is based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options. (b) Restricted Stock Units The following table summarizes restricted stock unit activity for the years ended December 31, 2018 and 2017: Weighted average Number of grant date Awards fair value Outstanding at January 01, 2017 2,060,240 $ 2.70 Granted 1,701,252 2.32 Forfeited (417,725 ) 2.93 Vested and converted to shares, net of units withheld for taxes (540,673 ) 2.75 Units withheld for taxes (211,507 ) 2.75 Outstanding at December 31, 2017 2,591,587 $ 2.39 Granted 2,106,536 2.70 Forfeited (871,184 ) 2.37 Vested and converted to shares, net of units withheld for taxes (645,560 ) 2.80 Units withheld for taxes (248,143 ) $ 2.80 Outstanding at December 31, 2018 2,933,236 $ 2.50 Expected to vest at December 31, 2018 2,786,574 $ 2.50 Share-based compensation cost for restricted stock units (RSUs) is measured based on the closing fair market value of the Company's common stock on the date of grant. The Company recognizes share-based compensation cost over the award's requisite service period on a straight-line basis for time-based RSUs and on a graded basis for RSUs that are contingent on the achievement of performance conditions. The majority of RSUs that vested in 2018 and 2017 were net-share settled such that the Company withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes and remitted the cash to the appropriate taxing authorities. The total shares withheld were approximately 248,000 shares for 2018 and approximately 212,000 shares for 2017 , and were based on the value of the RSUs on their respective vesting dates as determined by the Company’s closing stock price. These net-share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued as a result of the vesting and did not represent an expense to the Company. At December 31, 2018 and 2017 , there was $ 5.4 million and $4.3 million of compensation expense yet to be recognized related to non-vested restricted stock units. The unrecognized expense as of December 31, 2018 is expected to be recognized over the remaining weighted-average vesting period of 2.82 years. 893,703 and 752,180 of the restricted stock units vested during the years ended December 31, 2018 and 2017 , respectively. Restricted stock units granted under the 2012 Plan generally vest over periods between one and four years.

Employee Benefit Plan

Employee Benefit Plan	12 Months Ended
	Dec. 31, 2018
Retirement Benefits [Abstract]
Employee Benefit Plan	Employee Benefit Plan The Company has a 401(k) Salary Deferral Plan (the Plan) covering all full-time employees who have met certain service requirements. Employees may contribute a portion of their salary up to the maximum limit established by the Code for such plans. Employer contributions are discretionary. No matching contributions were made during 2018 , 2017 and 2016 .

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s income tax expense (benefit) consists of the following (in thousands): 2018 2017 2016 Current: Federal $ 275 $ (5,427 ) $ 3,835 State 777 369 (1,293 ) 1,052 (5,058 ) 2,542 Deferred: Federal $ (52 ) $ 2,643 $ (5,379 ) State 542 1,090 (1,533 ) 490 3,733 (6,912 ) Total expense (benefit) $ 1,542 $ (1,325 ) $ (4,370 ) The reconciliation between the amount computed by applying the U.S. federal statutory rate of 21% for 2018, and 34% for 2017 and 2016, to income before taxes and the Company's tax provision for 2018, 2017, and 2016 is as follows: 2018 2017 2016 Federal income at the statutory rate 21 % 34 % 34 % State income tax, net of federal benefit (18 )% (8 )% 11 % Permanent differences (4 )% 1 % (1 )% Work Opportunity Credit — % 2 % 1 % Return to provision true-up (4 )% (1 )% (1 )% Valuation allowance (18 )% (13 )% (18 )% Rate change on deferreds — % (6 )% — % Other — % — % 2 % (23 )% 9 % 28 % The following table summarized the components of the Company's deferred tax assets and liabilities as of December 31, 2018 and 2017 (in thousands): 2018 2017 Deferred tax assets Bad debt reserve $ — $ 11 Vacation accrual 551 510 Workers compensation 138 241 Nonqualified stock options 3,361 3,917 Debt issuance costs 6 27 Acquisition costs — 23 State tax deferral 502 384 Deferred revenue — 15 State tax credits 452 452 Net operating loss 3,876 453 Estimated liability for appeals 67 3,956 Identifiable intangible assets 153 — Interest expense limitation 1,498 — Other 497 448 Total deferred tax assets 11,101 10,437 Valuation allowance (8,397 ) (5,772 ) Total deferred tax assets net of valuation allowance 2,704 4,665 Deferred tax liabilities: Identifiable intangible assets — (733 ) Fixed assets (2,692 ) (3,430 ) Other (34 ) (34 ) Total deferred tax liabilities (2,726 ) (4,197 ) Net deferred tax assets (liabilities) $ (22 ) $ 468 As of December 31, 2018 , and 2017, the Company recorded a valuation allowance against deferred tax assets that are not more likely than not realizable based upon the assessment of all positive and negative evidence. The total amount of the valuation allowance at December 31, 2018 is $8.4 million , which is an increase of $2.6 million from the amount recorded as of December 31, 2017 . On December 22, 2017, President Trump signed into law the “Tax Cuts and Jobs Act” (TCJA) that significantly reforms the Internal Revenue Code of 1986, as amended. The TCJA, among other things, includes changes to U.S. federal tax rates, imposes significant additional limitations on the deductibility of interest, allows for the expensing of capital expenditures, and puts into effect the migration from a “worldwide” system of taxation to a territorial system. The Company calculated the impact of the Tax Act in its year end income tax provision in accordance with its understanding of the Tax Act and guidance available at the time, and provided for the provisional income tax expense in the fourth quarter of 2017. The Company completed its analysis of the impacts of the 2017 Tax Act in the fourth quarter of 2018 with no change to its provisional estimates. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. Based upon the Company’s cumulative three year loss position and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will be unable to realize the benefits of these deductible differences. The amount of the deferred tax asset considered realizable, however, could change in the near term if estimates of future taxable income during the carryforward period change. The Company has state tax credits of $0.5 million , which will expire in 2024. The Company has state net operating loss carryforwards of $20.7 million which will start to expire in 2020 and a federal net operating loss carryforward of $8.9 million which will can be carried forward indefinitely. The Company has $0.2 million of federal tax credit carryforwards which begin to expire in 2037. The following table reconciles the Company’s unrecognized tax benefits as of December 31, 2018 from its unrecognized tax benefits as of December 31, 2016 (in thousands): Unrecognized tax benefits balance at December 31, 2016 $ 987 Increase related to prior year tax positions 362 Decrease related to prior year tax positions — Increase related to current year tax positions — Settlements — Lapse of statute of limitations (267 ) Unrecognized tax benefits balance at December 31, 2017 1,082 Increase related to prior year tax positions 602 Decrease related to prior year tax positions — Increase related to current year tax positions — Settlements — Lapse of statute of limitations (83 ) Unrecognized tax benefits balance at December 31, 2018 $ 1,601 At December 31, 2018 and 2017 , the Company had approximately $1.6 million and $1.1 million of unrecognized tax benefits, respectively. The Company does not expect any significant change in unrecognized tax benefits during the next twelve months. The Company records interest expense and penalties related to unrecognized tax benefits in income tax expense. The amount of accrued interest was $0.2 million and $0.2 million at December 31, 2018 and 2017 , respectively. No penalties were recognized in 2018 or accrued at December 31, 2018 , and 2017 respectively. The Company has unrecognized tax benefits of approximately $1.6 million which, if recognized, would favorably affect the Company’s effective income tax rate. We file income tax returns with the U.S. federal government and various state jurisdictions. The Company operates in a number of state and local jurisdictions, most of which have never audited the Company's records. Accordingly, the Company is subject to state and local income tax examinations based upon the various statutes of limitations in each jurisdiction. For tax years before 2015, the Company is no longer subject to Federal and certain other state tax examinations. The company is currently being examined by the Franchise Tax Board of California for tax years 2011 through 2014.

Other Commitments and Contingen

Other Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Other Commitments and Contingencies	Other Commitments and Contingencies (a) Trust Funds The Company collects principal and interest payments and collection costs on defaulted loans for various contracting agencies. Cash collections for some of the Company’s customers are held in trust in bank accounts controlled by the Company. The Company remits trust funds to the contracting agencies on a regular basis. The amount of cash held in trust and the related liability are separated from and not included in the Company’s consolidated financial statements. Cash held in trust for customers totaled $3.2 million and $0.7 million at December 31, 2018 and 2017 , respectively. (b) Litigation The Company, during the ordinary course of its operations, has been named in various legal suits and claims, several of which are still pending. In the opinion of management and the Company’s legal counsel, such legal actions will not have a material effect on the Company’s consolidated financial position or results of operations or cash flows.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through the date these consolidated financial statements were issued and there are no other events that have occurred that would require adjustments or disclosures to the consolidated financial statements, other than the amendment to the Credit Agreement as discussed in Note 4.

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2018
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS For the years ended December 31, 2018 , 2017 and 2016 Allowance for doubtful accounts (in thousands): Description Balance at Beginning of Period Additions Charged against Expense Recoveries Charge-offs Balance at End of Period 2018 $ 35 22 — (35 ) $ 22 2017 $ 224 35 — (224 ) $ 35 2016 $ 386 — (162 ) — $ 224 Estimated allowance and liability for appeals (in thousands): Description Balance at Beginning of Period Additions Charged against Revenue Appeals Found in Providers Favor Balance at End of Period 2018 $ 18,817 441 (19,048 ) * $ 210 2017 $ 19,305 300 (788 ) $ 18,817 2016 $ 19,118 2,085 (1,898 ) $ 19,305 *Includes the release of $18.5 million related to the January 31, 2018 termination of the CMS Region A RAC contract. Deferred tax asset valuation allowance (in thousands): Description Balance at Beginning of Period Additions Releases Balance at End of Period 2018 $ 5,772 2,625 — $ 8,397 2017 $ 3,857 1,915 — $ 5,772 2016 $ 452 3,405 — $ 3,857

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Organization and Nature of Business	Organization and Nature of Business Performant Financial Corporation (the "Company" or "we") is a leading provider of technology-enabled recovery and analytics services in the United States. The Company's services help identify, restructure and recover delinquent or defaulted assets and improper payments for both government and private clients in a broad range of markets. Clients of the Company typically operate in complex and regulated environments and contract for their recovery needs in order to reduce losses on defaulted student loans, improper healthcare payments and delinquent state tax and federal treasury receivables. The Company generally provides our services on an outsourced basis; handling many or all aspects of the clients’ recovery processes. The Company’s consolidated financial statements include the operations of Performant Financial Corporation (Performant), its wholly-owned subsidiaries Premiere Credit of North America, LLC (Premiere) and Performant Business Services, Inc., and its wholly-owned subsidiaries Performant Recovery, Inc. (Recovery), Performant Technologies, Inc., and Performant Europe Ltd. Effective August 13, 2012, we changed the name of our wholly-owned subsidiary from DCS Business Services, Inc. (DCSBS) to Performant Business Services, Inc., and DCSBS’ wholly-owned subsidiaries from Diversified Collection Services, Inc. (DCS), and Vista Financial, Inc. (VFI), to Performant Recovery, Inc., and Performant Technologies, Inc., respectively. Performant is a Delaware corporation headquartered in California and was formed in 2003. Premiere is an Indiana limited liability company acquired by Performant on August 31, 2018. Performant Business Services, Inc. is a Nevada corporation founded in 1997. Recovery is a California corporation founded in 1976. Performant Technologies, Inc. is a California corporation that was formed in 2004. The Company is managed and operated as one business, with a single management team that reports to the Chief Executive Officer.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. The Company consolidates entities in which it has controlling financial interest, and as of December 31, 2018 , all of the Company’s subsidiaries are 100% owned. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates in the Preparation of Consolidated Financial Statements	Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of the consolidated financial statements in conformity with U.S. GAAP, requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, primarily accounts receivable, intangible assets, goodwill, estimated liability for appeals, earnout payable, other liabilities, deferred income taxes and income tax expense, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Our actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include demand deposits and highly liquid debt investments with original maturities of three months or less when purchased. These investments can include money market funds that invest in U.S. government and agency obligations, certificates of deposit, bankers’ acceptances, and commercial paper. The Company collects monies on behalf of its clients. Cash is often held on behalf of the clients in various trust accounts and is subsequently remitted to the clients based on contractual agreements. Cash held in these trust accounts for contracting agencies is not included in the Company’s assets (Note 11(a)).
Restricted Cash	Restricted Cash At December 31, 2018 and 2017 , restricted cash included in current assets on our consolidated balance sheet was $1.8 million and $ 1.8 million , respectively. In May 2017, the Company paid $7.5 million to the lenders and deposited $6.0 million into a segregated deposit account. On August 3, 2017, all of this $6.0 million of restricted cash was paid to the administrative agent for the benefit of the lenders under our prior credit agreement. In November 2017, the Company deposited $1.8 million in restricted cash as collateral for new letters of credit issued to replace letters of credit terminated under our prior credit agreement.
Property, Equipment, and Leasehold Improvements	Property, Equipment, and Leasehold Improvements Property, equipment, and leasehold improvements are stated at cost, net of accumulated depreciation. Furniture and equipment are depreciated using the straight-line method over estimated useful lives ranging from 5 to 7 years. Buildings are depreciated using the straight-line method over 31.5 years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated life of the asset or the remaining term of the lease. Computer software and computer hardware are depreciated using the straight-line method over 3 years and 5 years, respectively. Maintenance and repairs are charged to expense as incurred. Improvements that extend the useful lives of assets are capitalized. When property is sold or retired, the cost and the related accumulated depreciation are removed from the consolidated balance sheet and any gain or loss from the transaction is included in the consolidated statements of operations.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price and related costs over the fair value assigned to the net assets of businesses acquired. Goodwill is not amortized, but instead is reviewed for impairment at least annually. Impairment is the condition that exists when the carrying amount of goodwill is not recoverable and its carrying amount exceeds its fair value. The Company performs its assessment of whether it is more likely than not that goodwill fair value is less than its carrying amount in November of each year to allow the Company additional time to evaluate its assessment prior to reporting its results. The Company performed a quantitative impairment assessment of whether it is more likely than not that goodwill fair value is less than its carrying amount as of November 30, 2018, and concluded that there was no need to impair goodwill. During the second quarter of 2017, the Company decided to wind down the activity of Performant Europe Ltd. Based on this decision, the Company concluded that the fair value of Performant Europe Ltd. was more likely than not less than its carrying amount. Accordingly, the goodwill balance related to the healthcare audit acquisition was $0.9 million , and we recognized a goodwill impairment loss of this amount as of June 30, 2017. The Company performed a qualitative assessment of whether it is more likely than not that goodwill fair value is less than its carrying amount as of November 30, 2017, and concluded that there was no need to perform an impairment test. Identifiable intangible assets consist of customer contracts and related relationships, a perpetual license, and covenants not to compete. Customer contracts and related relationships are amortized over their estimated useful life of 4 to 20 years. The perpetual license is amortized over its estimated useful life of 5 years.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets or intangibles may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.
System Developments	System Developments The Company follows the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Subtopic 350-40, Internal-Use Software , which specifies that costs incurred during the application stage of development should be capitalized. All other costs are expensed as incurred.
Debt Issuance Costs	Debt Issuance Costs Debt issuance costs represent loan and legal fees paid in connection with the issuance of long-term debt. Debt issuance costs are deducted from current and non-current notes payable and are amortized to interest expense under the effective interest method in accordance with key terms of the notes as amended.
Revenues, Accounts Receivable, and Estimated Liability for Appeals	Revenues, Accounts Receivable, and Estimated Liability for Appeals The Company derives its revenues primarily from providing recovery services. Revenues are recognized when control of these services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company determines revenue recognition through the following steps: • Identification of the contract with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the performance obligations are satisfied The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company’s contracts generally contain a single performance obligation, delivered over time as a series of services that are substantially the same and have the same pattern of transfer to the client, as the promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For contracts with multiple performance obligations, the Company would allocate the contract’s transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct service in the contract. The Company determines the standalone selling prices by taking into consideration the value of the services being provided, the client type and how similar services are priced in other contracts on a standalone basis. The Company’s contracts are composed primarily of variable consideration. Fees earned under the Company’s recovery service contracts consist primarily of contingency fees based on a specified percentage of the amount the Company enables its clients to recover. The contingency fee percentage for a particular recovery depends on the type of recovery or claim facilitated. In certain contracts the Company can earn additional performance-based consideration determined based on its performance relative to the client’s other contractors providing similar services. Revenue from contingency fees earned upon recovery of funds is generally recognized as amounts are invoiced based on either the ‘as-invoiced’ practical expedient when such amounts reflect the value of the services completed to-date, or an output measure based on milestones which is used to measure progress of the satisfaction of its performance obligation. The Company estimates any performance-based variable consideration and recognizes such revenue over the performance period only if it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Under certain contracts, consideration can include periodic performance-based bonuses which can be awarded based on the Company’s performance under the specific contract. These performance-based awards are considered variable and may be constrained by the Company until there is not a risk of a material reversal. For contracts that contain a refund right, these amounts are considered variable consideration and the Company estimates its refund liability for each claim and recognizes revenue net of such estimate. The following table presents revenue disaggregated by category (in thousands) for the year ended December 31, 2018, 2017 and 2016. Year Ended December 31, 2018 2017 2016 (in thousands) Student Lending: Great Lakes Higher Education Guaranty Corporation $ 26,702 $ 46,090 $ 36,956 All Other Guaranty Agencies 39,796 48,215 72,609 Total of Student Lending 66,498 94,305 109,565 Healthcare: CMS RAC and MSP CRC (1) 41,859 1,437 5,733 Commercial 14,088 8,549 5,662 Total of Healthcare 55,947 9,986 11,395 Other (2) 33,223 27,758 20,400 Total Revenues $ 155,668 $ 132,049 $ 141,360 (1) Includes $ 28.4 million related to the termination of the 2009 CMS Region A contract (2) Represents outsource services, tax, and IRS The Company generally either applies the as-invoiced practical expedient where its right to consideration corresponds directly to its right to invoice its clients, or the variable consideration allocation exception where the variable consideration is attributable to one or more, but not all, of the services promised in a series of distinct services that form part of a single performance obligation. As such the Company has elected the optional exemptions related to the as-invoiced practical expedient and the variable consideration allocation exception whereby the disclosure of the amount of transaction price allocated to the remaining performance obligations is not required. The Company has applied the as-invoiced practical expedient or the variable consideration allocation exception to contracts with performance obligations that have an average remaining duration of less than a year. Revenue is recognized upon the collection of defaulted loan and debt payments. Loan rehabilitation revenue is recognized when the rehabilitated loans are sold (funded) by clients. Incentive revenue is recognized upon receipt of official notification of incentive award from customers. Under the Company’s Medicare Secondary Payer (MSP), Commercial Payment Center (CPC) contract with Centers for Medicare and Medicaid Services (CMS), the Company recognizes revenues when insurance companies or other responsible parties remit payment to reimburse CMS for claims for which they are responsible, and the remittance has been applied in the CMS database. Under the Company’s Medicare Recovery Audit Contractor (RAC), contract with CMS, the Company recognizes revenues when the healthcare provider has paid CMS for a given claim or has agreed to an offset against other claims by the provider. Under other healthcare contracts, the Company may recognize revenue upon delivering the results of claims audits, when sufficient reliable information is available to the Company for estimating the variable consideration earned, as it is a reasonable measure of the Company’s progress toward complete satisfaction of our performance obligation. Healthcare providers have the right to appeal a claim and may pursue additional appeals if the initial appeal is found in favor of CMS or other healthcare clients. Total estimated liability for appeals was $0.2 million and $18.8 million as of December 31, 2018 and 2017, respectively. This represents the Company’s best estimate of the probable amount of losses related to appeals of claims for which commissions were previously collected. As a result of the termination of the 2009 CMS Region A contract on January 31, 2018, the estimated liability for appeals related to CMS was $0.0 million as of December 31, 2018 as compared to $18.5 million as of December 31, 2017. For the year ended December 31, 2018 , the Company had 3 clients whose individual revenues exceeded 10% of the Company’s total revenues. The dollar amount and percent of total revenue of each of the 3 clients is summarized in the table below (in thousands): Rank 2018 Revenue Percent of 1 $41,859 26.9% 2 $26,908 17.3% 3 $26,702 17.2% For the year ended December 31, 2017 , the Company had 2 clients whose individual revenues exceeded 10% of the Company’s total revenues. The dollar amount and percent of total revenue of each of the 2 clients is summarized in the table below (in thousands): Rank 2017 Revenue Percent of 1 $43,189 32.7% 2 $27,367 20.7% For the year ended December 31, 2016 , the Company had 3 clients whose individual revenues exceeded 10% of the Company’s total revenues. The dollar amount and percent of total revenue of each of the 3 clients is summarized in the table below (in thousands): Rank 2016 Revenue Percent of 1 $33,243 23.5% 2 $23,196 16.4% 3 $21,949 15.5% Revenue from the largest three customers was 61% , 63% and 55% of total revenue in 2018 , 2017 and 2016 , respectively. Accounts receivable due from these three customers were 62% , 31% and 57% of total trade receivables at December 31, 2018 , 2017 and 2016 , respectively. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by (used in) operating activities in the consolidated statements of cash flows. The Company determines the allowance for doubtful accounts by specific identification. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts was $0.02 million and $0.04 million for December 31, 2018 and December 31, 2017 , respectively. The Company determined that it does not have any costs related to obtaining or fulfilling a contract that are recoverable and as such, these contract costs are expensed as incurred Contract assets are included in trade accounts receivable in the consolidated balance sheets. The Company has contract assets of $3.0 million and $1.6 million as of December 31, 2018 and December 31, 2017, respectively. The contract assets relate to the Company’s rights to consideration for services completed during the year ended December 31, 2018, and December 31, 2017, but not invoiced at the reporting date. Contract assets are recorded to accounts receivable when the rights become unconditional and amounts are invoiced. Contract liabilities are included in Deferred revenue in the consolidated balance sheets. The Company has contract liabilities of $1.1 million as of December 31, 2018 and none as of December 31, 2017. The Company’s contract liability relates to an advance recovery commission payment received from a customer during the first quarter of 2018, for which the Company anticipates revenue to be recognized as services are delivered.
Net Payable to Client	Net Payable to Client The Company nets outstanding accounts receivable invoices from an audit and recovery contract against payables for overturned audits. The overturned audits are netted against current fees due on the invoice to the client when they are processed by the client’s system.
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets The Company employed subcontractors to audit claims as part of the 2009 CMS Region A contract, and to the extent that audits by these subcontractors were overturned on appeal, the fees associated with such claims were contractually refundable to the Company.
Legal Expenses	Legal Expenses The Company recognizes legal fees related to litigation as they are incurred.
Comprehensive Income (Loss)	Comprehensive Income (Loss) The Company has a single component of comprehensive income (loss) on the consolidated statements of comprehensive income (Loss) related to foreign currency translation adjustments for its subsidiary Performant Europe Ltd. for the years ended December 31, 2018 , 2017 and 2016 .
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s consolidated financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, short-term debt and long-term debt. The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair values based on or due to their short-term maturities. The carrying values of short-term debt and long-term debt approximate fair value, in which their variable interest rates approximate market rates.
Income Taxes	Income Taxes The Company accounts for income taxes under the asset-and-liability method. Deferred income tax assets and liabilities are recognized for future tax consequences attributable to differences between the carrying value of assets and liabilities for financial reporting purposes and for taxation purposes. Deferred income tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred income tax assets and liabilities is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Interest expense and penalties related to unrecognized tax benefits are recorded in income tax expense.
Stock Options	Stock Options The Company accounts for its employee stock-based compensation awards in accordance with FASB ASC Topic 718, Compensation – Stock Compensation . FASB ASC Topic 718 requires that all employee stock-based compensation is recognized as a cost in the consolidated financial statements and that for equity-classified awards, such cost is measured at the grant date fair value of the award. The Company estimates grant date fair value using the Black-Scholes-Merton option-pricing model. FASB ASC Topic 718 also requires that excess tax benefits recognized in equity related to stock option exercises are reflected as financing cash inflows.
Loss per Share	Loss per Share For the years ended December 31, 2018 , 2017 , and 2016 , basic loss per share is calculated by dividing net loss attributable to common shareholders by the sum of the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares and dilutive common shares equivalents outstanding during the period. The Company’s common share equivalents consist of stock options, restricted stock units(RSUs), and performance stock units. When there is a loss in the period, dilutive common share equivalents are excluded from the calculation of diluted earnings per share, as their effect would be anti-dilutive.
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Accounting Standards In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” which provides guidance on the presentation of certain cash receipts and cash payments in the statement of cash flows in order to reduce diversity in existing practice. This new guidance was effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2017, and early adoption was permitted. This new standard required retrospective adoption, with a provision for impracticability. The Company adopted this guidance on January 1, 2018 and it did not have any impact on our consolidated financial statements. In May 2014, the FASB issued an ASU that amends the FASB ASC by creating a new Topic 606, "Revenue from Contracts with Customers". The new guidance supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition", and most industry-specific guidance on revenue recognition throughout the Industry Topics of the Codification. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply a five-step model for recognizing and measuring revenue from contracts with customers. In addition, an entity should disclose sufficient qualitative and quantitative information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Topic 606 as of January 1, 2018, utilizing the full retrospective method of transition. The Company applied Topic 606 retrospectively for all reporting periods presented before January 1, 2018, the date of the initial application. There was no impact of adopting Topic 606 on the Company’s 2017 and 2016 consolidated financial statements. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, “Leases”, which requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC Topic 840 Leases. The guidance is effective for our fiscal year beginning January 1, 2019 and should be applied using a modified retrospective approach. Early adoption is permitted. The Company plans to adopt this new standard in the first quarter of our fiscal 2019 with the cumulative effect of adoption recognized to retained earnings on January 1, 2019. Upon adoption, the Company will recognize right-of-use assets and operating lease liabilities on the consolidated balance sheets, which will increase the total assets and total liabilities. In July 2018 the FASB issued ASU No. 2018-11, Targeted Improvements , which provides us with the option to apply the new leasing standard to all open leases as of the adoption date. The Company has elected to adopt this pronouncement using the optional transition method under ASU 2018-11 as of January 1, 2019 and Management estimates that the adoption will result in recognition of right-of-use assets of $9.1 million and lease liabilities for operating leases of approximately $10.2 million , including a reclassification of deferred rent for $1.1 million , on its Consolidated Balance Sheets. Management does not believe the new standard will have a material impact on the consolidated statements of operations, nor will it have a notable impact on the Company’s liquidity. The standard will also have no impact on the Company’s debt-covenant compliance under its current agreements. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment" to simplify the goodwill impairment testing process. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill exceeds its fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. The Company elected to early adopt the proposed guidance for the year ended December 31, 2018 on a prospective basis. The early adoption of this guidance did not have a material impact on the consolidated financial statements and related disclosures .

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Schedule of Estimated Consideration Transferred for Acquisition	The estimated consideration of $4.3 million has been revised as follows: Preliminary Final (In thousands except per share amount) Initial shares consideration 1,000 1,000 Closing stock price per share $ 2.42 $ 2.42 2,420 2,420 Earn-out consideration 1,876 2,154 Total consideration $ 4,296 $ 4,574
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed	The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The purchase price allocation of $4.3 million at August 31, 2018 and the revised price, were as follows: Preliminary Final (In thousands) Cash and cash equivalents $ 1,669 $ 2,285 Trade accounts receivable, net 1,690 1,690 Other current assets 576 576 Property, equipment, and leasehold improvements, net 2,896 3,174 Customer relationship intangible asset 50 50 Other assets 34 34 Total identifiable assets acquired 6,915 7,809 Accounts Payable (328 ) (328 ) Accrued salaries and benefits (970 ) (970 ) Other current liabilities (1,186 ) (1,802 ) Other liabilities (135 ) (135 ) Net assets acquired $ 4,296 $ 4,574
Schedule of Intangible Assets Acquired	The estimated fair value and useful life for the customer relationship intangible asset is as follows: Estimated Fair Value Estimated Useful Life (In thousands) (In years) Customer Relationships $ 50 4
Schedule of Pro Forma Information from Acquisition	The following table presents selected unaudited pro forma information for the Company assuming the acquisition of Premiere had occurred as of January 1, 2017. This pro forma information does not purport to present what the Company’s actual results would have been if the acquisition occurred as of the date indicated or what such results would be for any future periods. Unaudited Year Ended December 31, 2018 2017 (In thousands, except per share amounts) Total revenues $ 170,893 $ 160,759 Net loss $ (12,672 ) $ (15,200 ) Earnings per share: Basic $ (0.24 ) $ (0.30 ) Diluted $ (0.24 ) $ (0.30 )
Schedule of Disaggregation of Revenue	The following table presents revenue disaggregated by category (in thousands) for the year ended December 31, 2018, 2017 and 2016. Year Ended December 31, 2018 2017 2016 (in thousands) Student Lending: Great Lakes Higher Education Guaranty Corporation $ 26,702 $ 46,090 $ 36,956 All Other Guaranty Agencies 39,796 48,215 72,609 Total of Student Lending 66,498 94,305 109,565 Healthcare: CMS RAC and MSP CRC (1) 41,859 1,437 5,733 Commercial 14,088 8,549 5,662 Total of Healthcare 55,947 9,986 11,395 Other (2) 33,223 27,758 20,400 Total Revenues $ 155,668 $ 132,049 $ 141,360 (1) Includes $ 28.4 million related to the termination of the 2009 CMS Region A contract (2) Represents outsource services, tax, and IRS
Schedule of Details of Revenue by Major Customers	For the year ended December 31, 2018 , the Company had 3 clients whose individual revenues exceeded 10% of the Company’s total revenues. The dollar amount and percent of total revenue of each of the 3 clients is summarized in the table below (in thousands): Rank 2018 Revenue Percent of 1 $41,859 26.9% 2 $26,908 17.3% 3 $26,702 17.2% For the year ended December 31, 2017 , the Company had 2 clients whose individual revenues exceeded 10% of the Company’s total revenues. The dollar amount and percent of total revenue of each of the 2 clients is summarized in the table below (in thousands): Rank 2017 Revenue Percent of 1 $43,189 32.7% 2 $27,367 20.7% For the year ended December 31, 2016 , the Company had 3 clients whose individual revenues exceeded 10% of the Company’s total revenues. The dollar amount and percent of total revenue of each of the 3 clients is summarized in the table below (in thousands): Rank 2016 Revenue Percent of 1 $33,243 23.5% 2 $23,196 16.4% 3 $21,949 15.5%
Schedule of Reconciliation of Basic to Diluted Weighted Average Shares Outstanding	The following table reconciles the basic to diluted weighted average shares outstanding using the treasury stock method (shares in thousands): Years Ended December 31, 2018 2017 2016 Weighted average shares outstanding – basic 52,064 50,688 50,038 Dilutive effect of stock options — — — Weighted average shares outstanding – diluted 52,064 50,688 50,038
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table shows the number of shares of common stock subject to options and restricted stock awards that were outstanding for the years ended December 31, 2018 , 2017 and 2016 , which were not included in the net loss per diluted share calculation because to do so would have been anti-dilutive: Years Ended December 31, 2018 2017 2016 Number of shares 4,828,278 4,604,218 3,996,701

Property, Equipment, and Leas_2

Property, Equipment, and Leasehold Improvements (Tables)	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of Property, Equipment and Leasehold Improvements	Property, equipment, and leasehold improvements consist of the following at December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Land $ 1,943 $ 1,122 Building and leasehold improvements 8,076 6,410 Furniture and equipment 6,248 5,763 Computer hardware and software 78,743 72,044 95,010 85,339 Less accumulated depreciation and amortization (72,755 ) (64,395 ) Property, equipment and leasehold improvements, net $ 22,255 $ 20,944

Identifiable Intangible Assets

Identifiable Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Schedule of Identifiable Intangible Assets	Identifiable intangible assets consist of the following at December 31, 2018 and 2017 (in thousands): December 31, 2018 Gross Amounts Accumulated Amortization Net Amortizable intangibles: Customer contracts and related relationships $ 25,378 $ (24,264 ) $ 1,114 Less: Impairment of customer contracts and related relationships (2,988 ) 2,988 — Add: Customer relationship intangible asset 50 (4 ) 46 Perpetual license 3,250 (3,250 ) — Total intangible assets $ 25,690 $ (24,530 ) $ 1,160 December 31, 2017 Gross Amounts Accumulated Amortization Net Amortizable intangibles: Customer contracts and related relationships $ 23,209 $ (18,345 ) $ 4,864 Less: Impairment of customer contracts and related relationships (1,081 ) 1,081 — Perpetual license 3,250 (3,250 ) — Total intangible assets $ 25,378 $ (20,514 ) $ 4,864
Schedule of Estimated Aggregate Amortization Expense	The estimated aggregate amortization expense for each of the five following fiscal years is as follows (in thousands): Year Ending December 31, Amount 2019 $ 235 2020 235 2021 235 2022 232 2023 223 Thereafter — Total $ 1,160

Credit Agreement (Tables)

Credit Agreement (Tables)	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Schedule of Payments under Credit Agreement	Scheduled payments under the Credit Agreement for the next five years and thereafter are as follows (in thousands): Year Ending December 31, Amount 2019 $ 2,350 2020 2,400 2021 41,050 2022 — Total $ 45,800
Schedule of Key Assumptions Used to Value Warrants	The key assumptions used to value the warrants are as follows: August 2017 Issuance October 2018 Issuance Exercise price $1.92 $1.92 Share price on date of issuance $1.85 $1.93 Volatility 50.0% 55.0% Risk-free interest rate 1.83% 3.01% Expected dividend yield —% —% Contractual term (in years) 5 5
Schedule of Outstanding Debt Obligations	Outstanding debt obligations are as follows (in thousands): December 31, 2018 Principal amount $ 45,800 Less: unamortized discount and debt issuance costs (2,471 ) Loan payable, net of unamortized discount and debt issuance costs 43,329 Less: current maturities (2,224 ) Long-term loan payable, net of current maturities $ 41,105

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Commitments under Non-Cancelable Leases	Future minimum rental commitments under non-cancelable leases as of December 31, 2018 are as follows (in thousands): Year Ending December 31, Amount 2019 $ 3,427 2020 3,393 2021 2,514 2022 1,901 2023 800 Thereafter 1,390 Total $ 13,425

Stock-based Compensation (Table

Stock-based Compensation (Tables)	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Option Activity	The following table sets forth a summary of the Company's stock option activity for the years ended December 31,2018 and 2017: Outstanding Options Weighted average exercise price per share Weighted average remaining contractual life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 01, 2017 3,506,529 7.32 5.04 Granted — — Forfeited (260,175 ) 5.4 Exercised (310,156 ) 0.50 Outstanding at December 31, 2017 2,936,198 8.21 4.48 Granted — — Forfeited (208,346 ) 8.96 Exercised (268,750 ) 0.69 Outstanding December 31, 2018 2,459,102 $ 8.97 3.25 $ 273 Vested, exercisable, and expected to vest (1) at December 31, 2018 2,458,640 $ 8.97 3.24 $ 273 Exercisable at December 31, 2018 2,449,857 $ 8.99 3.23 $ 271 (1) Options expected to vest reflect an estimated forfeiture rate.
Schedule of Assumptions to Estimate Fair Value Options	We estimated the fair value of options granted using a Black-Scholes-Merton option pricing model with the following assumptions: For the Years Ended December 31, 2018 2017 2016 Expected volatility —% —% 51.5% Expected dividends —% —% —% Expected term (years) — — 6.1 Risk-free interest rate —% —% 1.4% Weighted-average estimated fair value of options granted during the year $— $— $0.86
Schedule of Restricted Stock Units Award Activity	The following table summarizes restricted stock unit activity for the years ended December 31, 2018 and 2017: Weighted average Number of grant date Awards fair value Outstanding at January 01, 2017 2,060,240 $ 2.70 Granted 1,701,252 2.32 Forfeited (417,725 ) 2.93 Vested and converted to shares, net of units withheld for taxes (540,673 ) 2.75 Units withheld for taxes (211,507 ) 2.75 Outstanding at December 31, 2017 2,591,587 $ 2.39 Granted 2,106,536 2.70 Forfeited (871,184 ) 2.37 Vested and converted to shares, net of units withheld for taxes (645,560 ) 2.80 Units withheld for taxes (248,143 ) $ 2.80 Outstanding at December 31, 2018 2,933,236 $ 2.50 Expected to vest at December 31, 2018 2,786,574 $ 2.50

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense (Benefit)	The Company’s income tax expense (benefit) consists of the following (in thousands): 2018 2017 2016 Current: Federal $ 275 $ (5,427 ) $ 3,835 State 777 369 (1,293 ) 1,052 (5,058 ) 2,542 Deferred: Federal $ (52 ) $ 2,643 $ (5,379 ) State 542 1,090 (1,533 ) 490 3,733 (6,912 ) Total expense (benefit) $ 1,542 $ (1,325 ) $ (4,370 )
Schedule of Reconciliation of Federal Statutory Income Tax Expense to Actual Income Tax Expense	The reconciliation between the amount computed by applying the U.S. federal statutory rate of 21% for 2018, and 34% for 2017 and 2016, to income before taxes and the Company's tax provision for 2018, 2017, and 2016 is as follows: 2018 2017 2016 Federal income at the statutory rate 21 % 34 % 34 % State income tax, net of federal benefit (18 )% (8 )% 11 % Permanent differences (4 )% 1 % (1 )% Work Opportunity Credit — % 2 % 1 % Return to provision true-up (4 )% (1 )% (1 )% Valuation allowance (18 )% (13 )% (18 )% Rate change on deferreds — % (6 )% — % Other — % — % 2 % (23 )% 9 % 28 %
Schedule of Components of Deferred Tax Assets and Liabilities	The following table summarized the components of the Company's deferred tax assets and liabilities as of December 31, 2018 and 2017 (in thousands): 2018 2017 Deferred tax assets Bad debt reserve $ — $ 11 Vacation accrual 551 510 Workers compensation 138 241 Nonqualified stock options 3,361 3,917 Debt issuance costs 6 27 Acquisition costs — 23 State tax deferral 502 384 Deferred revenue — 15 State tax credits 452 452 Net operating loss 3,876 453 Estimated liability for appeals 67 3,956 Identifiable intangible assets 153 — Interest expense limitation 1,498 — Other 497 448 Total deferred tax assets 11,101 10,437 Valuation allowance (8,397 ) (5,772 ) Total deferred tax assets net of valuation allowance 2,704 4,665 Deferred tax liabilities: Identifiable intangible assets — (733 ) Fixed assets (2,692 ) (3,430 ) Other (34 ) (34 ) Total deferred tax liabilities (2,726 ) (4,197 ) Net deferred tax assets (liabilities) $ (22 ) $ 468
Schedule of Unrecognized Tax Benefits	The following table reconciles the Company’s unrecognized tax benefits as of December 31, 2018 from its unrecognized tax benefits as of December 31, 2016 (in thousands): Unrecognized tax benefits balance at December 31, 2016 $ 987 Increase related to prior year tax positions 362 Decrease related to prior year tax positions — Increase related to current year tax positions — Settlements — Lapse of statute of limitations (267 ) Unrecognized tax benefits balance at December 31, 2017 1,082 Increase related to prior year tax positions 602 Decrease related to prior year tax positions — Increase related to current year tax positions — Settlements — Lapse of statute of limitations (83 ) Unrecognized tax benefits balance at December 31, 2018 $ 1,601

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details)	Dec. 31, 2018USD ($)	Aug. 31, 2018USD ($)employeeshares	Aug. 03, 2017USD ($)	Jun. 30, 2017USD ($)	May 31, 2017USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2018USD ($)segmentCustomer	Dec. 31, 2017USD ($)Customer	Dec. 31, 2016USD ($)Customer	Jan. 01, 2019USD ($)	Nov. 30, 2017USD ($)
Property, Plant and Equipment [Line Items]
Number of segments | segment							1
Restricted cash	$ 1,813,000					$ 1,813,000	$ 1,813,000	$ 1,788,000
Restricted cash	3,200,000					3,200,000	3,200,000	700,000			$ 1,800,000
Impairment of goodwill				$ 900,000
Capitalized internal use software							5,500,000	5,100,000	$ 6,900,000
Capitalized internal use software, depreciation expense							6,800,000	6,700,000	$ 5,800,000
Estimated liability for appeals	210,000					210,000	$ 210,000	$ 18,817,000
Number of clients whose individual revenues exceeded 10% of total revenues | Customer							3	2	3
Allowance for doubtful accounts	22,000					22,000	$ 22,000	$ 35,000
Contract assets	3,000,000					3,000,000	3,000,000	1,600,000
Contract liabilities	1,100,000					1,100,000	1,100,000	0
Net payable to client	0					0	0	12,800,000
Receivable future overturned audits	0					0	0	5,600,000
Receivable, already overturned audits								3,700,000
Income tax benefit from employee stock awards							0	0	$ 103,000
Deferred rent	1,200,000					1,200,000	$ 1,200,000	$ 700,000
Furniture Fixtures and Equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of property							7 years
Furniture Fixtures and Equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of property							5 years
Building
Property, Plant and Equipment [Line Items]
Estimated useful lives of property							31 years 6 months
Computer Hardware and Software | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of property							3 years
Computer Hardware and Software | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of property							5 years
Customer contracts and related relationships | Minimum
Property, Plant and Equipment [Line Items]
Identifiable intangible assets estimated useful lives							4 years
Customer contracts and related relationships | Maximum
Property, Plant and Equipment [Line Items]
Identifiable intangible assets estimated useful lives							20 years
Perpetual license
Property, Plant and Equipment [Line Items]
Identifiable intangible assets estimated useful lives							5 years
The largest three customers | Revenue | Customer Concentration Risk
Property, Plant and Equipment [Line Items]
Concentration risk (as a percent)							61.00%	63.00%	55.00%
The largest three customers | Accounts Receivable | Customer Concentration Risk
Property, Plant and Equipment [Line Items]
Concentration risk (as a percent)							62.00%	31.00%	57.00%
Amendment Number Eight to Credit Agreement
Property, Plant and Equipment [Line Items]
Payment for debt extinguishment			$ 6,000,000		$ 7,500,000
Restricted cash					$ 6,000,000
2009 CMS Region A Contract Case
Property, Plant and Equipment [Line Items]
Estimated liability for appeals	0					0	$ 0	$ 18,500,000
Premiere Credit of North America
Property, Plant and Equipment [Line Items]
Number of employees | employee		330
Initial stock consideration (shares) | shares		1,000,000
Period of additional stock issuance pursuant to acquisition		5 years
Earn-out consideration	$ 2,200,000	$ 2,154,000
Estimated consideration transferred		4,574,000
Cash and cash equivalents acquired		2,285,000
Other current liabilities acquired		1,802,000
Net property, equipment, and leasehold improvements acquired		3,174,000
Acquisition-related costs		200,000
Pro forma revenue of acquiree since acquisition							7,000,000
Pro forma net loss of acquiree since acquisition							$ (1,400,000)
Premiere Credit of North America | Restatement Adjustment
Property, Plant and Equipment [Line Items]
Earn-out consideration						$ 300,000
Cash and cash equivalents acquired		600,000
Other current liabilities acquired		600,000
Net property, equipment, and leasehold improvements acquired		$ 300,000
Premiere Credit of North America | Preliminary
Property, Plant and Equipment [Line Items]
Initial stock consideration (shares) | shares		1,000,000
Earn-out consideration		$ 1,876,000
Estimated consideration transferred		4,296,000
Cash and cash equivalents acquired		1,669,000
Other current liabilities acquired		1,186,000
Net property, equipment, and leasehold improvements acquired		$ 2,896,000
Forecast | Subsequent Event | Accounting Standards Update 2016-02
Property, Plant and Equipment [Line Items]
Right-of-use assets										$ 9,100,000
Operating lease liabilities										10,200,000
Deferred rent										$ 1,100,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Consideration Transferred (Details) - Premiere Credit of North America - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2018	Aug. 31, 2018
Business Acquisition [Line Items]
Initial stock consideration (shares)		1,000,000
Closing stock price (USD per share)		$ 2.42
Value of initial shares consideration		$ 2,420
Earn-out consideration	$ 2,200	2,154
Total consideration		$ 4,574
Preliminary
Business Acquisition [Line Items]
Initial stock consideration (shares)		1,000,000
Closing stock price (USD per share)		$ 2.42
Value of initial shares consideration		$ 2,420
Earn-out consideration		1,876
Total consideration		$ 4,296

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Purchase Price Allocation (Details) - Premiere Credit of North America $ in Thousands	Aug. 31, 2018USD ($)
Business Acquisition [Line Items]
Cash and cash equivalents	$ 2,285
Trade accounts receivable, net	1,690
Other current assets	576
Property, equipment, and leasehold improvements, net	3,174
Customer relationship intangible asset	50
Other assets	34
Total identifiable assets acquired	7,809
Accounts Payable	(328)
Accrued salaries and benefits	(970)
Other current liabilities	(1,802)
Other liabilities	(135)
Net assets acquired	4,574
Preliminary
Business Acquisition [Line Items]
Cash and cash equivalents	1,669
Trade accounts receivable, net	1,690
Other current assets	576
Property, equipment, and leasehold improvements, net	2,896
Customer relationship intangible asset	50
Other assets	34
Total identifiable assets acquired	6,915
Accounts Payable	(328)
Accrued salaries and benefits	(970)
Other current liabilities	(1,186)
Other liabilities	(135)
Net assets acquired	$ 4,296

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Estimated Fair Value and Useful Life (Details) - Premiere Credit of North America $ in Thousands	Aug. 31, 2018USD ($)
Business Acquisition [Line Items]
Estimated Fair Value	$ 50
Customer Relationships
Business Acquisition [Line Items]
Estimated Fair Value	$ 50
Estimated Useful Life	4 years

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Pro Forma Information (Details) - Premiere Credit of North America - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition, Pro Forma Information [Abstract]
Total revenues	$ 170,893	$ 160,759
Net loss	$ (12,672)	$ (15,200)
Earnings per share:
Basic (USD per share)	$ (0.24)	$ (0.30)
Diluted (USD per share)	$ (0.24)	$ (0.30)

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Disaggregated Revenue by Category (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of Revenue [Line Items]
Total Revenues	$ 155,668	$ 132,049	$ 141,360
Total of Student Lending
Disaggregation of Revenue [Line Items]
Total Revenues	66,498	94,305	109,565
Great Lakes Higher Education Guaranty Corporation
Disaggregation of Revenue [Line Items]
Total Revenues	26,702	46,090	36,956
All Other Guaranty Agencies
Disaggregation of Revenue [Line Items]
Total Revenues	39,796	48,215	72,609
Total of Healthcare
Disaggregation of Revenue [Line Items]
Total Revenues	55,947	9,986	11,395
CMS RAC and MSP CRC
Disaggregation of Revenue [Line Items]
Total Revenues	41,859	1,437	5,733
CMS RAC and MSP CRC | 2009 CMS Region A Contract
Disaggregation of Revenue [Line Items]
Total Revenues	28,400
Commercial
Disaggregation of Revenue [Line Items]
Total Revenues	14,088	8,549	5,662
Other
Disaggregation of Revenue [Line Items]
Total Revenues	$ 33,223	$ 27,758	$ 20,400

Summary of Significant Accou_10

Summary of Significant Accounting Policies - Details of Revenue by Major Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue, Major Customer [Line Items]
Revenues	$ 155,668	$ 132,049	$ 141,360
Customer 1 | Customer Concentration Risk
Revenue, Major Customer [Line Items]
Revenues	$ 41,859	$ 43,189	$ 33,243
Customer 1 | Revenue | Customer Concentration Risk
Revenue, Major Customer [Line Items]
Percent of total revenue	26.90%	32.70%	23.50%
Customer 2 | Customer Concentration Risk
Revenue, Major Customer [Line Items]
Revenues	$ 26,908	$ 27,367	$ 23,196
Customer 2 | Revenue | Customer Concentration Risk
Revenue, Major Customer [Line Items]
Percent of total revenue	17.30%	20.70%	16.40%
Customer 3 | Customer Concentration Risk
Revenue, Major Customer [Line Items]
Revenues	$ 26,702		$ 21,949
Customer 3 | Revenue | Customer Concentration Risk
Revenue, Major Customer [Line Items]
Percent of total revenue	17.20%		15.50%

Summary of Significant Accou_11

Summary of Significant Accounting Policies - Reconciliation of Basic to Diluted Weighted-Average Shares Outstanding (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Weighted average shares outstanding – basic (shares)	52,064	50,688	50,038
Dilutive effect of stock options (shares)	0	0	0
Weighted average shares outstanding – diluted (shares)	52,064	50,688	50,038

Summary of Significant Accou_12

Summary of Significant Accounting Policies - Anti-Dilutive Securities (Details) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Number of shares	4,828,278	4,604,218	3,996,701

Property, Equipment, and Leas_3

Property, Equipment, and Leasehold Improvements - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense of property, equipment and leasehold improvements	$ 9.5	$ 10	$ 9.6

Property, Equipment, and Leas_4

Property, Equipment, and Leasehold Improvements - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, plant, and equipment	$ 95,010	$ 85,339
Less accumulated depreciation and amortization	(72,755)	(64,395)
Property, equipment and leasehold improvements, net	22,255	20,944
Land
Property, Plant and Equipment [Line Items]
Property, plant, and equipment	1,943	1,122
Building and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant, and equipment	8,076	6,410
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property, plant, and equipment	6,248	5,763
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property, plant, and equipment	$ 78,743	$ 72,044

Identifiable Intangible Asset_2

Identifiable Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortization expense	$ 0.8	$ 0.9	$ 3.7
Impairment expense	$ 3	$ 0.1	$ 15.4

Identifiable Intangible Asset_3

Identifiable Intangible Assets - Summary (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Amounts	$ 25,690	$ 25,378
Accumulated Amortization	(24,530)	(20,514)
Less: Impairment of customer contracts and related relationships	2,988	1,081
Total	1,160	4,864
Customer contracts and related relationships
Finite-Lived Intangible Assets [Line Items]
Gross Amounts	25,378	23,209
Accumulated Amortization	(24,264)	(18,345)
Total	1,114	4,864
Add: Customer relationship intangible asset
Finite-Lived Intangible Assets [Line Items]
Gross Amounts	50
Accumulated Amortization	(4)
Total	46
Perpetual license
Finite-Lived Intangible Assets [Line Items]
Gross Amounts	3,250	3,250
Accumulated Amortization	(3,250)	(3,250)
Total	$ 0	$ 0

Identifiable Intangible Asset_4

Identifiable Intangible Assets - Schedule of Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Intangible Assets, Net (Excluding Goodwill) [Abstract]
2019	$ 235
2020	235
2021	235
2022	232
2023	223
Thereafter	0
Total	$ 1,160	$ 4,864

Credit Agreement - Narrative (D

Credit Agreement - Narrative (Details)

Oct. 15, 2018USD ($)shares

Aug. 31, 2018USD ($)extension_periodshares

Aug. 07, 2017USD ($)$ / sharesshares

Jun. 30, 2017

Aug. 31, 2017USD ($)

Jun. 30, 2020

Jun. 30, 2022

Jun. 30, 2021

Dec. 31, 2018USD ($)$ / shares

Dec. 31, 2017USD ($)

Dec. 31, 2016USD ($)

Aug. 11, 2017USD ($)

Line of Credit Facility [Line Items]

Number of optional extension periods | extension_period

2

Duration of optional extension periods

1 year

Write-off of unamortized debt issuance costs

$ 1,000,000

$ 0

$ 1,049,000

$ 468,000

Value of warrants outstanding

$ 200,000

$ 3,300,000

Debt issuance costs

$ 600,000

Remaining discount amortization period

48 months

Initial Term Loan

Line of Credit Facility [Line Items]

Diluted undistributed earnings (as a percent)

7.50%

Exercise price (USD per share) | $ / shares

$ 1.92

Initial Term Loan | Line of Credit

Line of Credit Facility [Line Items]

Long-term borrowings outstanding

$ 44,000,000

$ 45,800,000

Additional Term Loan

Line of Credit Facility [Line Items]

Duration of optional extension periods

1 year

Securities called by warrants (shares) | shares

309,066

Diluted undistributed earnings (as a percent)

0.15%

Securities called per warrant (shares) | shares

77,267

Allotment of securities called by warrants

$ 1,000,000

Additional Term Loan | Line of Credit

Line of Credit Facility [Line Items]

Maximum borrowing capacity under credit facility

$ 25,000,000

$ 15,000,000

Proceeds from credit facility

$ 4,000,000

New Credit Agreement

Line of Credit Facility [Line Items]

Floor rate (as a percent)

1.00%

Weighted-average interest rate (as a percent)

8.00%

8.60%

Periodic principal payment (as a percent)

5.00%

Required premium (as a percent)

1.00%

Debt to EBITDA ratio

6

Quarterly payments of principal

$ 2,200,000

New Credit Agreement | Minimum

Line of Credit Facility [Line Items]

Excess cash flow (as a percent)

0.00%

New Credit Agreement | Maximum

Line of Credit Facility [Line Items]

Excess cash flow (as a percent)

75.00%

Amendment Number One to Credit Agreement

Line of Credit Facility [Line Items]

Securities called by warrants (shares) | shares

3,863,326

Exercise price (USD per share) | $ / shares

$ 1.92

Amendment Number Two to Credit Agreement

Line of Credit Facility [Line Items]

Exercise price (USD per share) | $ / shares

$ 1.92

London Interbank Offered Rate (LIBOR) | New Credit Agreement | Minimum

Line of Credit Facility [Line Items]

Basis spread on variable rate (as a percent)

5.50%

London Interbank Offered Rate (LIBOR) | New Credit Agreement | Maximum

Line of Credit Facility [Line Items]

Basis spread on variable rate (as a percent)

10.00%

Forecast | New Credit Agreement

Line of Credit Facility [Line Items]

Interest coverage ratio

1

1.25

1.25

Redemption Period One | Additional Term Loan

Line of Credit Facility [Line Items]

Diluted undistributed earnings (as a percent)

1.00%

Securities called per warrant (shares) | shares

515,110

Redemption Period Two | Additional Term Loan

Line of Credit Facility [Line Items]

Diluted undistributed earnings (as a percent)

1.50%

Securities called per warrant (shares) | shares

772,665

Credit Agreement - Payment unde

Credit Agreement - Payment under Credit Agreement (Details) $ in Thousands	Dec. 31, 2018USD ($)
Line of Credit Facility [Line Items]
Loan payable, net of unamortized discount and debt issuance costs	$ 43,329
New Credit Agreement
Line of Credit Facility [Line Items]
2019	2,350
2020	2,400
2021	41,050
2022	0
Loan payable, net of unamortized discount and debt issuance costs	$ 45,800

Credit Agreement - Warrant Valu

Credit Agreement - Warrant Valuation (Details)	12 Months Ended
	Dec. 31, 2018$ / shares
Amendment Number One to Credit Agreement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Exercise price (USD per share)	$ 1.92
Share price on date of issuance (USD per share)	$ 1.85
Amendment Number One to Credit Agreement | Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input of warrants (as a percent)	0.500
Amendment Number One to Credit Agreement | Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input of warrants (as a percent)	0.0183
Amendment Number One to Credit Agreement | Expected dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input of warrants (as a percent)	0
Amendment Number One to Credit Agreement | Contractual term (in years)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contractual term of warrants	5 years
Amendment Number Two to Credit Agreement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Exercise price (USD per share)	$ 1.92
Share price on date of issuance (USD per share)	$ 1.93
Amendment Number Two to Credit Agreement | Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input of warrants (as a percent)	0.550
Amendment Number Two to Credit Agreement | Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input of warrants (as a percent)	0.0301
Amendment Number Two to Credit Agreement | Expected dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input of warrants (as a percent)	0
Amendment Number Two to Credit Agreement | Contractual term (in years)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contractual term of warrants	5 years

Credit Agreement - Outstanding

Credit Agreement - Outstanding Debt Obligations (Details) $ in Thousands	Dec. 31, 2018USD ($)
Debt Disclosure [Abstract]
Principal amount	$ 45,800
Less: unamortized discount and debt issuance costs	(2,471)
Loan payable, net of unamortized discount and debt issuance costs	43,329
Less: current maturities	(2,224)
Long-term loan payable, net of current maturities	$ 41,105

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - USD ($) $ in Millions	Aug. 31, 2018	Dec. 31, 2018
Line of Credit | Initial Term Loan
Related Party Transaction [Line Items]
Long-term borrowings outstanding	$ 44	$ 45.8
Premiere Credit of North America
Related Party Transaction [Line Items]
Initial stock consideration (shares)	1,000,000
Affiliated Entity
Related Party Transaction [Line Items]
Revenue from related party		$ 15.5
Affiliated Entity | ECMC
Related Party Transaction [Line Items]
Beneficial ownership percentage (as a percent)		9.00%
Affiliated Entity | ECMC | New Credit Agreement
Related Party Transaction [Line Items]
Securities called by warrants (shares)		4,172,392
Affiliated Entity | ECMC | Premiere Credit of North America
Related Party Transaction [Line Items]
Initial stock consideration (shares)	1,000,000

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) ft² in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)ft²lease_agreement	Dec. 31, 2016USD ($)	Oct. 31, 2017ft²
Commitment and Contingencies [Line Items]
Number of lease agreements | lease_agreement		2
Lease expense | $	$ 3.9	$ 2.7	$ 2.8
Deferred rent | $	$ 1.2	$ 0.7
California
Commitment and Contingencies [Line Items]
Area of land (in square feet)				50
Texas
Commitment and Contingencies [Line Items]
Area of land (in square feet)		26
Florida
Commitment and Contingencies [Line Items]
Area of land (in square feet)		32

Commitments and Contingencies_2

Commitments and Contingencies - Future Minimum Rental Commitments under Non-Cancelable Leases (Details) $ in Thousands	Dec. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 3,427
2020	3,393
2021	2,514
2022	1,901
2023	800
Thereafter	1,390
Total	$ 13,425

Capital Stock - Narrative (Deta

Capital Stock - Narrative (Details) - shares	Dec. 31, 2018	Dec. 31, 2017	Aug. 15, 2012
Equity [Abstract]
Common stock authorized (shares)	500,000,000	500,000,000	500,000,000
Convertible preferred stock authorized (shares)			50,000,000

Stock-based Compensation - Narr

Stock-based Compensation - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2012	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated life of stock options		10 years
Stock-based compensation expense		$ 2,800	$ 3,700	$ 4,700
Aggregate intrinsic value of stock options exercised		500	400
Unrecognized stock-based compensation		$ 10	300
Recognition period		4 months 28 days
Proceeds from exercise of stock options		$ 187	$ 155	$ 337
Company weighting of expected volatility rate (as a percent)		100.00%	88.00%
Expected dividends (as a percent)		0.00%	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		5 years
2007 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
2012 Stock Incentive Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
2012 Stock Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		5 years
Nonqualified Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of stock options relative to common stock fair market value (as a percent)		85.00%
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares paid for tax withholding		248,000	212,000
Compensation expense that has yet to be recognized		$ 5,400	$ 4,300
Remaining weighted average vesting period		2 years 9 months 26 days
Restricted Stock | 2012 Stock Incentive Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		1 year
Restricted Stock | 2012 Stock Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units vested (shares)		893,703	752,180

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Option Activity (Details) - Options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Outstanding Options
Outstanding at beginning of period (shares)	2,936,198	3,506,529
Granted (shares)	0	0
Forfeited (shares)	(208,346)	(260,175)
Exercised (shares)	(268,750)	(310,156)
Outstanding at end of period (shares)	2,459,102	2,936,198	3,506,529
Vested, exercisable, and expected to vest (shares)	2,458,640
Exercisable (shares)	2,449,857
Weighted average exercise price per share
Outstanding at beginning of period (USD per share)	$ 8.21	$ 7.32
Granted (USD per share)	0	0
Forfeited (USD per share)	8.96	5.4
Exercised (USD per share)	0.69	0.50
Outstanding at end of period (USD per share)	8.97	$ 8.21	$ 7.32
Vested, exercisable, and expected to vest (USD per share)	8.97
Exercisable (USD per share)	$ 8.99
Weighted average remaining contractual life (Years)
Outstanding	3 years 2 months 29 days	4 years 5 months 22 days	5 years 16 days
Vested, exercisable, and expected to vest	3 years 2 months 28 days
Exercisable	3 years 2 months 24 days
Aggregate Intrinsic Value (in thousands)
Outstanding	$ 273
Vested, exercisable, and expected to vest	273
Exercisable	$ 271

Stock-based Compensation - Assu

Stock-based Compensation - Assumptions to Estimate Fair Value Options (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected volatility (as a percent)	0.00%	0.00%	51.50%
Expected dividends (as a percent)	0.00%	0.00%	0.00%
Expected term	0 years	0 years	6 years 26 days
Risk-free interest rate (as a percent)	0.00%	0.00%	1.40%
Weighted-average estimated fair value of options granted during the year (USD per share)	$ 0	$ 0	$ 0.86

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018
Number of Awards
Balance at beginning of period (shares)	2,591,587	2,060,240
Granted (shares)	2,106,536	1,701,252
Forfeited (shares)	(871,184)	(417,725)
Vested and converted to shares, net of units withheld for taxes (shares)	(645,560)	(540,673)
Units withheld for taxes (shares)	(248,143)	(211,507)
Balance at end of period (shares)	2,933,236	2,591,587
Expected to vest (shares)			2,786,574
Weighted average grant date fair value
Balance at beginning of period (USD per share)	$ 2.39	$ 2.70
Granted (USD per share)	2.70	2.32
Forfeited (USD per share)	2.37	2.93
Vested and converted to shares, net of units withheld for taxes (USD per share)	2.80	2.75
Units withheld for taxes (USD per share)	2.80	2.75
Balance at end of period (USD per share)	$ 2.39	$ 2.70	$ 2.50
Expected to vest (USD per share)			$ 2.50

Employee Benefit Plan - Narrati

Employee Benefit Plan - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Employer matching contributions during period	$ 0	$ 0	$ 0

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax [Line Items]
Valuation allowance	$ 8,397,000	$ 5,772,000
Increase (decrease) in valuation allowance	2,600,000
Tax credits	452,000	452,000
Unrecognized tax benefits	1,601,000	1,082,000	$ 987,000
Accrued interest	200,000	200,000
Tax penalties expense	0
Tax penalties accrued	0	$ 0
Unrecognized tax benefits that would impact effective tax rate	1,600,000
California Enterprise Zone
Income Tax [Line Items]
Valuation allowance	8,400,000
State
Income Tax [Line Items]
Tax credits	500,000
State net operating loss carryforwards	20,700,000
Federal
Income Tax [Line Items]
Tax credits	200,000
Federal net operating loss carryforwards	$ 8,900,000

Income Taxes - Summary of Incom

Income Taxes - Summary of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current:
Federal	$ 275	$ (5,427)	$ 3,835
State	777	369	(1,293)
Current, total	1,052	(5,058)	2,542
Deferred:
Federal	(52)	2,643	(5,379)
State	542	1,090	(1,533)
Deferred, total	490	3,733	(6,912)
Total expense (benefit)	$ 1,542	$ (1,325)	$ (4,370)

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Federal Statutory Income Tax Expense to Actual Income Tax Expense (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Federal income at the statutory rate	21.00%	34.00%	34.00%
State income tax, net of federal benefit	(18.00%)	(8.00%)	11.00%
Permanent differences	(4.00%)	1.00%	(1.00%)
Work Opportunity Credit	0.00%	2.00%	1.00%
Return to provision true-up	(4.00%)	(1.00%)	(1.00%)
Valuation allowance	(18.00%)	(13.00%)	(18.00%)
Rate change on deferreds	0.00%	(6.00%)	0.00%
Other	0.00%	0.00%	2.00%
Total income tax expense, percentage	(23.00%)	9.00%	28.00%

Income Taxes - Components of De

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets
Bad debt reserve	$ 0	$ 11
Vacation accrual	551	510
Workers compensation	138	241
Nonqualified stock options	3,361	3,917
Debt issuance costs	6	27
Acquisition costs	0	23
State tax deferral	502	384
Deferred revenue	0	15
State tax credits	452	452
Net operating loss	3,876	453
Estimated liability for appeals	67	3,956
Identifiable intangible assets	153	0
Interest expense limitation	1,498	0
Other	497	448
Total deferred tax assets	11,101	10,437
Valuation allowance	(8,397)	(5,772)
Total deferred tax assets net of valuation allowance	2,704	4,665
Deferred tax liabilities:
Identifiable intangible assets	0	(733)
Fixed assets	(2,692)	(3,430)
Other	(34)	(34)
Total deferred tax liabilities	(2,726)	(4,197)
Net deferred tax assets (liabilities)	$ (22)
Net deferred tax assets (liabilities)		$ 468

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of period of unrecognized tax benefits	$ 1,082	$ 987
Increase related to prior year tax positions	602	362
Decrease related to prior year tax positions	0	0
Increase related to current year tax positions	0	0
Settlements	0	0
Lapse of statute of limitations	(83)	(267)
Balance at end of period of unrecognized tax benefits	$ 1,601	$ 1,082

Other Commitments and Conting_2

Other Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Nov. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Restricted cash	$ 3.2	$ 0.7	$ 1.8

SCHEDULE II - VALUATION AND Q_2

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Estimated liability for appeals	$ 210	$ 18,817
2009 CMS Region A Contract
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Estimated liability for appeals	0	18,500
Allowance for doubtful accounts
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	35	224	$ 386
Additions Charged against Expense	22	35	0
Recoveries	0	0	(162)
Charge-offs and Releases	(35)	(224)	0
Balance at End of Period	22	35	224
Estimated allowance and liability for appeals
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	18,817	19,305	19,118
Additions Charged against Expense	441	300	2,085
Appeals Found in Providers Favor	(19,048)	(788)	(1,898)
Balance at End of Period	210	18,817	19,305
Deferred tax asset valuation allowance
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	5,772	3,857	452
Additions Charged against Expense	2,625	1,915	3,405
Charge-offs and Releases	0	0	0
Balance at End of Period	$ 8,397	$ 5,772	$ 3,857

Uncategorized Items - pfmt-2018

Label	Element	Value
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 7,502,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	1,788,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 1,813,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	us-gaap_SharebasedCompensationArrangementBySharebasedPaymentAwardPurchasePriceOfCommonStockPercent	100.00%
Employee Stock Option [Member] | Two Thousand Seven Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant	0
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized	4,000,000
Employee Stock Option [Member] | Two Thousand Twelve Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized	10,550,000