Inovalon (INOV) 10-Q 8 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Entity Registrant Name	Inovalon Holdings, Inc.
Entity Central Index Key	1,619,954
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Class A Common
Entity Common Stock, Shares Outstanding (in shares)		71,660,149
Class B Common
Entity Common Stock, Shares Outstanding (in shares)		80,608,685

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 410,000	$ 208,944
Short-term investments	40,275	267,288
Accounts receivable (net of allowances of $1,545 and $2,038 at March 31, 2018 and December 31, 2017, respectively)	78,401	90,054
Prepaid expenses and other current assets	14,200	10,441
Income tax receivable	11,810	11,987
Total current assets	554,686	588,714
Non-current assets:
Property, equipment and capitalized software, net	139,989	125,768
Goodwill	184,932	184,932
Intangible assets, net	85,475	89,326
Other assets	10,474	6,338
Total assets	975,556	995,078
Current liabilities:
Accounts payable	32,010	34,109
Accrued compensation	12,927	18,592
Other current liabilities	19,163	15,277
Deferred revenue	12,068	6,954
Deferred rent	805	1,818
Credit facilities	45,000	45,000
Capital lease obligation	1,815	336
Total current liabilities	123,788	122,086
Non-current liabilities:
Credit facilities, less current portion	180,000	191,250
Capital lease obligation, less current portion	15,134	12,109
Deferred rent	1,567	219
Other liabilities	2,111	0
Deferred income taxes	21,195	26,642
Total liabilities	343,795	352,306
Commitments and contingencies (Note 6)
Stockholders’ equity:
Common stock	0	0
Preferred stock, $0.0001 par value, 100,000,000 shares authorized, zero shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively	0	0
Additional paid-in-capital	538,873	534,159
Retained earnings	292,801	308,905
Treasury stock, at cost, 14,620,175 shares at March 31, 2018 and December 31, 2017, respectively	(199,817)	(199,817)
Other comprehensive loss	(97)	(476)
Total stockholders’ equity	631,761	642,772
Total liabilities and stockholders’ equity	975,556	995,078
Class A Common
Stockholders’ equity:
Common stock	0	0
Class B Common
Stockholders’ equity:
Common stock	$ 1	$ 1

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts receivable, allowances
Accounts receivable, allowances (in dollars)	$ 1,545	$ 2,038
Common stock
Common stock, par value (in dollars per share)	$ 0.000005	$ 0.000005
Common stock, authorized (in shares)	900,000,000	900,000,000
Common stock, issued (in shares)	0	0
Common stock, outstanding (in shares)	0	0
Preferred stock
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized (in shares)	100,000,000	100,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Class A Common
Common stock
Common stock, par value (in dollars per share)	$ 0.000005	$ 0.000005
Common stock, authorized (in shares)	750,000,000	750,000,000
Common stock, issued (in shares)	78,566,507	77,588,018
Common stock, outstanding (in shares)	63,946,332	62,967,843
Treasury stock
Treasury stock (in shares)	14,620,175	14,620,175
Class B Common
Common stock
Common stock, par value (in dollars per share)	$ 0.000005	$ 0.000005
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	80,608,685	80,957,495
Common stock, outstanding (in shares)	80,608,685	80,957,495

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Revenue		$ 92,755	$ 108,306
Expenses:
Cost of revenue	[1]	33,491	38,285
Sales and marketing	[1]	7,902	7,587
Research and development	[1]	6,421	7,788
General and administrative	[1]	49,396	35,845
Depreciation and amortization		16,380	12,485
Total operating expenses		113,590	101,990
(Loss) Income from operations		(20,835)	6,316
Other income and (expenses):
Realized losses on short-term investments		(1,035)	0
Loss on disposal of equipment		(85)	0
Interest income		1,395	1,338
Interest expense		(1,882)	(1,413)
(Loss) Income before taxes		(22,442)	6,241
(Benefit from) Provision for income taxes		(5,608)	2,599
Net (loss) income		(16,834)	3,642
Net (loss) income attributable to common stockholders, basic and diluted		$ (16,272)	$ 3,569
Net (loss) income per share attributable to common stockholders, basic and diluted:
Basic net (loss) income per share (in dollars per share)		$ (0.12)	$ 0.02
Diluted net (loss) income per share (in dollars per share)		$ (0.12)	$ 0.02
Weighted average shares of common stock outstanding:
Basic (in shares)		139,378	144,729
Diluted (in shares)		139,378	145,165
[1]	(1)Includes stock-based compensation expense as follows: Cost of revenue$140 $305 Sales and marketing469 390 Research and development628 273 General and administrative2,511 2,629 Total stock-based compensation expense$3,748 $3,597

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 3,748	$ 3,597
Cost of revenue
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	140	305
Sales and marketing
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	469	390
Research and development
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	628	273
General and administrative
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 2,511	$ 2,629

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (16,834)	$ 3,642
Other comprehensive income:
Realized losses on short-term investments reclassified from accumulated other comprehensive income, net of tax of $(319) and $0, respectively	716	0
Net change in unrealized (losses) and gains on available-for-sale investments, net of tax of $105 and $138, respectively	(235)	176
Reclassification of income tax effects of the Tax Cuts and Jobs Act of 2017	(102)	0
Comprehensive (loss) income	$ (16,455)	$ 3,818

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Realized gains on short-term investments reclassified from accumulated other comprehensive income, tax	$ (319)	$ 0
Net change in unrealized gains on available-for-sale investments, tax	$ 105	$ 138

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net (loss) income	$ (16,834)	$ 3,642
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	3,748	3,597
Depreciation	12,529	8,874
Amortization of intangibles	3,851	3,611
Amortization of premiums on short-term investments	232	591
Realized losses on short-term investments	1,035	0
Deferred income taxes	(5,922)	(113)
Loss on disposal of equipment	85	0
Change in fair value of contingent consideration	200	0
Changes in assets and liabilities:
Accounts receivable	11,669	(16,049)
Prepaid expenses and other current assets	(2,560)	(886)
Income taxes receivable	177	2,381
Other assets	(3,264)	(890)
Accounts payable	(1,669)	69
Accrued compensation	(4,017)	(6,467)
Other liabilities	2,164	(816)
Deferred rent	335	(214)
Deferred revenue	5,115	5,001
Net cash provided by operating activities	6,874	2,331
Cash flows from investing activities:
Maturities of short-term investments	63,470	59,615
Sales of short-term investments	161,772	0
Purchases of property and equipment	(9,645)	(2,965)
Investment in capitalized software	(11,125)	(5,605)
Net cash provided by investing activities	204,472	51,045
Cash flows from financing activities:
Repurchase of common stock	0	(25,383)
Repayment of credit facility borrowings	(11,250)	(7,500)
Proceeds from exercise of stock options	1,450	25
Capital lease obligations paid	(31)	(116)
Tax payments for equity award issuances	(459)	(197)
Net cash used in financing activities	(10,290)	(33,171)
Increase in cash and cash equivalents	201,056	20,205
Cash and cash equivalents, beginning of period	208,944	127,683
Cash and cash equivalents, end of period	410,000	147,888
Supplementary cash flow disclosure:
Cash paid during the period for: Income taxes, net of refunds	205	189
Cash paid during the period for: Interest	1,759	1,364
Non-cash investing activities:
Capital lease obligations incurred	4,536	0
Accruals for purchases of property, equipment	6,675	2,737
Accruals for investment in capitalized software	$ 1,882	$ 2,992

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by Inovalon Holdings, Inc. (the “Company”) in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and as required by Rule 10-01 of Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements may not include all of the information and notes required by GAAP for audited financial statements. The year-end December 31, 2017 condensed consolidated balance sheet data included herein was derived from audited financial statements but does not include all disclosures required by GAAP for complete financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of items of a normal and recurring nature, necessary to present fairly the Company’s financial position as of March 31, 2018 , the results of operations and comprehensive income for the three month periods ended March 31, 2018 and 2017 , and cash flows for the three months ended March 31, 2018 and 2017 . The results of operations for the three month periods ended March 31, 2018 and 2017 are not necessarily indicative of the results to be expected for the full year. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities, and related disclosures, as of the date of the financial statements, and the amounts of revenue and expenses reported during the period. Actual results could differ from estimates. The information contained herein should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “ 2017 Form 10-K”). Certain prior period amounts have been reclassified within the operating section of the condensed consolidated statements of cash flows, and within the investing section of the statements of cash flows to conform with current period presentation. Such reclassifications had no impact on net cash provided by operating activities or net cash provided by (used in) investing activities as previously reported. The accompanying unaudited condensed consolidated financial statements include the accounts of Inovalon Holdings, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s management considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers and subsequent clarifying guidance (“ASU 2014-09”). The core principle 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. The Company adopted this standard on January 1, 2018 using the modified retrospective approach. Refer to Note 2, “Revenue.” In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The update amends the guidance in Accounting Standards Codification (“ASC”) 230, Statement of Cash Flows , and clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows with the objective of reducing the existing diversity in practice related to eight specific cash flow issues. The Company adopted the requirements of the new standard in the first quarter of 2018 and there was no material impact on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The guidance is effective for all public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This guidance allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) which was signed into law on December 22, 2017. Early adoption is permitted in any interim period or fiscal year before the effective date. The Company early adopted the requirements of the new standard in the first quarter of 2018, and elected to reclassify the income tax effects of the Tax Act of $0.1 million from other comprehensive income to retained earnings. Refer to the condensed consolidated statements of comprehensive income. Recently Issued Accounting Standards There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and note disclosures, from those disclosed in the 2017 Form 10-K, that would be expected to impact the Company except for the following: In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815)-Targeted Improvements to Accounting for Hedging Activities. The update amends the current hedge accounting model and eliminates the requirement to separately measure and report hedge ineffectiveness. This guidance also requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line item as the hedged item. The update also eases documentation and assessment requirements, modifies certain disclosure requirements, and modifies the method of accounting for components excluded from the assessment of hedge effectiveness. The Company plans to adopt the requirements of the new standard in the second quarter of 2018.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE The Company adopted ASU 2014-09 as of January 1, 2018 using the modified retrospective approach. Revenues for periods beginning after January 1, 2018 are presented under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. The Company recorded a cumulative effect net adjustment to increase retained earnings by $0.6 million as of January 1, 2018. The impact as a result of adopting ASC 606 was an increase of $0.2 million in revenue and an increase of $0.1 million in expense resulting from deferred commissions for the three months ended March 31, 2018. These adjustments primarily related to commissions for certain contracts which are now expensed over the remaining life of the contracts and credits provided to customers which are recorded as a reduction to revenue over the applicable service period. For the remaining contracts, the Company has elected to use the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. The Company primarily derives its revenues through the sale or subscription licensing of its platform solutions and services. The following table disaggregates revenue by offering (in thousands): Three Months Ended 2018 2017 (1) Platform solutions (2) $ 78,966 $ 91,432 Services (3) 13,789 16,874 Total revenue $ 92,755 $ 108,306 ______________________________________ (1) Prior period amounts have not been adjusted under the modified retrospective method. (2) Platform solutions include arrangements for technology-based offerings representing subscription-based cloud-based platform offerings and legacy platform solutions that are not cloud-based and not billed under a subscription-based contract structure. (3) Services include advisory, implementation, and support services under time and materials, fixed price, or retainer-based contracts. Performance Obligations A performance obligation is a contractual promise to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation based on standalone selling price and revenue is recognized when the performance obligations under the terms of a contract are satisfied. The determination of standalone selling price for each performance obligation requires judgment based on the terms of the contract. The majority of the Company’s platform solutions contracts contain a series of separately identifiable and distinct services that represent performance obligations that are satisfied over time. The Company allocates revenue to platform solutions by determining the standalone selling price of each performance obligation. Revenue is generally recognized on our platform offerings over the contract term. For certain contracts, the Company has determined that it will use the practical expedient under ASC 606-10-55-18 to recognize revenue when it has the right to invoice. The Company qualifies for this practical expedient because the right to invoice corresponds directly with the value transferred to the customer. The Company allocates revenue to its service arrangements for advisory, implementation, and support services based on contractually agreed upon billing rates applied to direct labor hours expended plus the costs of other items used in the performance of the contract. The Company concluded that it will recognize revenue when it has the right to invoice the customer using the allowable practical expedient since the right to invoice the customer corresponds with the performance obligations completed. Revenues under fixed-price and retainer-based contracts are recognized ratably over the contract period or upon contract completion. Certain of the Company’s arrangements entitle a client to receive a refund if the Company fails to satisfy contractually specified performance obligations. The refund is limited to a portion or all of the consideration paid. In this case, revenue is recognized when performance obligations are satisfied. Historically, the Company has met contractually specified performance obligations. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, and deferred revenue. Invoices to clients are generated in accordance with the terms of the applicable contract, which may not be directly related to the performance of services. Unbilled receivables are invoiced when the achievement of specific events as defined by each contract occurs. The Company had unbilled receivables of $11.4 million and $14.1 million as of March 31, 2018 and December 31, 2017 , respectively. Unbilled receivables are classified as accounts receivable on the condensed consolidated balance sheet. Advanced billings to clients in excess of revenue earned are recorded as deferred revenue until the aforementioned revenue recognition criteria are met. Revenue recognized during the three months ended March 31, 2018, that was included in the deferred revenue balance at the beginning of the year, was $1.8 million .

NET (LOSS) INCOME PER SHARE

NET (LOSS) INCOME PER SHARE	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
NET (LOSS) INCOME PER SHARE	NET (LOSS) INCOME PER SHARE Holders of all outstanding classes of common stock participate ratably in earnings on an identical per share basis as if all shares were a single class. Basic earnings per share (“EPS”) is computed by dividing net (loss) income by the weighted average number of shares of common stock (Class A common stock and Class B common stock) outstanding during the period. Diluted EPS is computed by dividing net income by the sum of the weighted average number of shares of common stock outstanding and potentially dilutive securities outstanding during the period under the treasury stock method. If the Company incurs a loss from continuing operations, diluted EPS is computed in the same manner as basic EPS. Potentially dilutive securities include stock options, restricted stock units (“RSUs”) and restricted stock awards (“RSAs”). Under the treasury stock method, dilutive securities are assumed to be exercised at the beginning of the periods and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Securities are excluded from the computations of diluted earnings per share if their effect would be anti-dilutive to EPS. The Company has issued RSAs under the 2015 Omnibus Incentive Plan. The Company considers issued and unvested RSAs to be participating securities as the holders of these RSAs have a non-forfeitable right to dividends in the event of the Company’s declaration of a dividend on shares of Class A and Class B common stock. Subsequent to the issuance of the participating securities, the Company applied the two-class method required in calculating net (loss) income per share of Class A and Class B common stock. Under the two-class method, net income attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income, less earnings attributable to participating securities. The net (loss) income per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the (loss) income for the period has been distributed. As the liquidation and dividend rights are identical for both classes of common stock, the net (loss) income attributable to common stockholders is allocated on a proportionate basis. The following table reconciles the weighted average shares outstanding for basic and diluted EPS for the periods indicated (in thousands, except per share amounts): Three Months Ended 2018 2017 Basic Numerator: Net (loss) income $ (16,834 ) $ 3,642 Undistributed loss (earnings) allocated to participating securities 562 (73 ) Net (loss) income attributable to common stockholders—basic $ (16,272 ) $ 3,569 Denominator: Weighted average shares used in computing net income per share attributable to common stockholders—basic 139,378 144,729 Net (loss) income per share attributable to common stockholders—basic $ (0.12 ) $ 0.02 Diluted Numerator: Net (loss) income attributable to common stockholders—diluted $ (16,272 ) $ 3,569 Denominator: Number of shares used for basic EPS computation 139,378 144,729 Effect of dilutive securities — 436 Weighted average shares used in computing net income per share attributable to common stockholders—diluted 139,378 145,165 Net (loss) income per share attributable to common stockholders—diluted $ (0.12 ) $ 0.02 The computation of diluted EPS does not include certain awards, on a weighted average basis, for the three months ended March 31, 2018 and 2017 , because their inclusion would have an anti-dilutive effect on EPS. The awards excluded because of their anti-dilutive effect are as follows (in thousands): Three Months Ended 2018 2017 Awards excluded from the computation of diluted net (loss) income per share because their inclusion would have been anti-dilutive 118 168

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS	3 Months Ended
	Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]
SHORT-TERM INVESTMENTS	SHORT-TERM INVESTMENTS As of March 31, 2018 , short-term investments consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Corporate notes and bonds $ 37,401 $ — $ (140 ) $ 37,261 U.S. agency obligations 3,015 — (1 ) 3,014 Total available-for-sale securities $ 40,416 $ — $ (141 ) $ 40,275 As of December 31, 2017 , short-term investments consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Corporate notes and bonds $ 232,048 $ 3 $ (572 ) $ 231,479 U.S. agency obligations 15,341 — (99 ) 15,242 U.S. treasury securities 20,735 — (168 ) 20,567 Total available-for-sale securities $ 268,124 $ 3 $ (839 ) $ 267,288 The following table summarizes the estimated fair value of our short-term investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of the dates shown (in thousands): March 31, December 31, Due in one year or less $ 38,484 $ 204,725 Due after one year through two years 1,791 62,563 Total $ 40,275 $ 267,288 The Company has certain available-for-sale securities in a gross unrealized loss position. The Company reviews its debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial position and near-term prospects of the issuer and the Company’s intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s amortized-cost basis. If the Company determines that an other-than-temporary decline exists, or if write downs related to credit losses are necessary, in one of these securities, the unrealized losses attributable to the respective investment would be reclassified to realized losses on short-term investments within the statement of operations. There were no impairments considered other-than-temporary as of March 31, 2018 . The following table shows the fair values and the gross unrealized losses of available-for-sale securities that were in a gross unrealized loss position, as of March 31, 2018 , aggregated by investment category (in thousands): Estimated Fair Value Gross Unrealized Losses Corporate notes and bonds $ 37,261 $ (140 ) U.S. agency obligations 3,014 (1 ) $ 40,275 $ (141 )

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 (in thousands): Level 1 Level 2 Level 3 Total Cash Equivalents: Money market funds $ 138 $ — $ — $ 138 Short-term investments: Corporate notes and bonds — 37,261 — 37,261 U.S. agency obligations — 3,014 — 3,014 Liabilities: Contingent consideration — — (7,600 ) (7,600 ) Total $ 138 $ 40,275 $ (7,600 ) $ 32,813 The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 (in thousands): Level 1 Level 2 Level 3 Total Cash Equivalents: Money market funds $ 162,347 $ — $ — $ 162,347 Short-term investments: Corporate notes and bonds — 231,479 — 231,479 U.S. agency obligations — 15,242 — 15,242 U.S. treasury securities — 20,567 — 20,567 Other Current Liabilities: Contingent consideration — — (7,400 ) (7,400 ) Total $ 162,347 $ 267,288 $ (7,400 ) $ 422,235 The Company determines the fair value of its security holdings based on pricing from its pricing vendors. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs). The Company performs procedures to ensure that appropriate fair values are recorded such as comparing prices obtained from other sources. The following table presents our financial instruments measured at fair value using unobservable inputs (Level 3) (in thousands): Fair Value Measurements Using Unobservable Inputs (Level 3) March 31, December 31, Balance, beginning of period $ (7,400 ) $ (12,600 ) Fair value adjustment (recognized in general and administrative expenses) (200 ) 5,200 Total $ (7,600 ) $ (7,400 )

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal Proceedings —From time to time the Company is involved in various litigation matters arising out of the normal course of business. The Company consults with legal counsel on those issues related to litigation and seeks input from other experts and advisors with respect to such matters. Estimating the probable losses or a range of probable losses resulting from litigation, government actions and other legal proceedings is inherently difficult and requires an extensive degree of judgment, particularly where the matters involve indeterminate claims for monetary damages, may involve discretionary amounts, present novel legal theories, are in the early stages of the proceedings, or are subject to appeal. Whether any losses, damages or remedies ultimately resulting from such matters could reasonably have a material effect on the Company’s business, financial condition, results of operations, or cash flows will depend on a number of variables, including, for example, the timing and amount of such losses or damages (if any) and the structure and type of any such remedies. The Company’s management does not presently expect any litigation matters to have a material adverse impact on the condensed consolidated financial statements of the Company. There have been no significant or material developments to current legal proceedings, including the estimated effects on the Company’s condensed consolidated financial statements and note disclosures, subsequent to the disclosure previously provided in Note 10 of the Notes to the Consolidated Financial Statements in the 2017 Form 10-K.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	3 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
BUSINESS COMBINATIONS	BUSINESS COMBINATIONS ComplexCare Solutions Acquisition On July 6, 2017, the Company completed the acquisition of ComplexCare Solutions, Inc. and ComplexCare Solutions IPA, LLC (together, “CCS”). CCS is a company that provides technology-enabled interventions and member engagement coordination services for a number of payers and employers throughout the United States. The fair value included in the consolidated financial statements represents the Company’s best estimates and valuations in conformity with ASC No. 820, Fair Value Measurements and Disclosures . The final purchase price was allocated to identifiable assets acquired and liabilities assumed based upon valuation procedures performed. The Company acquired all of the capital stock of CCS for approximately $4.5 million in cash and the settlement of an existing payable to CCS of $2.3 million . The Company acquired approximately $9.8 million of assets, including approximately $1.5 million of cash and approximately $3.9 million of liabilities. The net assets acquired exceeded the consideration paid by approximately $1.4 million , and as such the Company recorded a bargain purchase gain in general and administrative expenses for the year ended December 31, 2017.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Business Combination —On April 2, 2018, the Company acquired Butler Group Holdings, Inc., a Delaware corporation, and its wholly-owned subsidiaries, including, without limitation, ABILITY Network Inc., a Delaware corporation (“ABILITY”), for aggregate consideration of approximately $1.17 billion in cash and restricted shares of the Company’s Class A common stock (“the ABILITY Acquisition”). ABILITY is a leading cloud-based Software-as-a-service (“SaaS”) technology company helping to simplify the administrative and clinical complexities of healthcare. Through the my ABILITY ® software platform, an integrated set of cloud-based applications for providers, ABILITY provides core connectivity, administrative, clinical, and quality analysis, management, and performance improvement capabilities to more than 44,000 acute, post-acute and ambulatory point-of-care provider facilities. The extensive datasets, on-demand compute capability, advanced analytics, and broad healthcare ecosystem connectivity enabled by the Inovalon ONE™ Platform are expected to provide a significant expansion of application offerings within the my ABILITY ® software platform while also expanding the nature and reach of high-value solutions for Inovalon’s existing payer, pharma, and device client-base. The combination of Inovalon and ABILITY creates a vertically integrated cloud-based platform empowering the achievement of real-time, value-based care from payers, manufacturers, and diagnostics all the way to the patient’s point of care. The aggregate consideration was comprised of $1.1 billion in cash and the issuance of 7.6 million restricted shares of the Company’s Class A common stock which has a preliminary value of approximately $70.0 million using an option pricing valuation model discounted for marketability. The cash portion of the aggregate consideration was financed through a combination of cash on hand and borrowings from the 2018 Term Facility (as defined below). The Company acquired certain intangible assets in connection with the ABILITY Acquisition including customer relationships, trade names, and technology. The purchase price allocation of assets acquired and liabilities assumed will be completed within the one year measurement period as required by ASC No. 805, Business Combinations . The preliminary value of consideration is subject to adjustment until the Company has completed its analysis within the measurement period. The Company is in the process of reviewing its assumptions related to the fair value of the consideration pending any working capital adjustments and estimates of tax related matters. Credit Facility —In connection with the ABILITY Acquisition, on April 2, 2018, the Company entered into a credit agreement (the “2018 Credit Agreement”) with Morgan Stanley Senior Funding, Inc. (“MSSF”), as administrative agent, to provide a Credit Facility which is comprised of: (i) a term loan B facility with the Company as borrower in a total principal amount of $980.0 million (the “2018 Term Facility”); and (ii) a revolving credit facility with the Company as borrower in a total principal amount of up to $100.0 million (the “2018 Revolving Facility”). The 2018 Revolving Facility will terminate on April 2, 2023 and the 2018 Term Facility will mature on April 2, 2025. The entire $980.0 million 2018 Term Facility was borrowed on April 2, 2018, and was used to pay off all of the Company’s existing debt obligations under the Credit and Guaranty Agreement dated as of September 19, 2014 as well as to provide the financing necessary to fund, in part, the cash consideration paid pursuant to the terms of the merger agreement. As of the date hereof, the Company has not drawn any amounts under the 2018 Revolving Facility. In addition, the Company and its Restricted Subsidiaries (as defined in the 2018 Credit Agreement) are subject to certain affirmative and negative covenants under the 2018 Credit Agreement, and the 2018 Credit Agreement includes certain customary representations and warranties of the Company. At the option of the Company, the loans outstanding under the 2018 Term Facility will bear interest either at: (i) Adjusted London Interbank Offer Rate (“LIBOR”) plus an applicable rate of 3.50% (or 3.25% if the Senior Secured Net Leverage Ratio, as defined in the 2018 Credit Agreement, is equal to or falls below 4.00 to 1.00) or (ii) the Alternate Base Rate (“ABR”) plus an applicable margin. The Company may elect interest periods of one, two, three or six months for Adjusted LIBOR borrowings. As set forth in the 2018 Credit Agreement, the Alternate Base Rate is the higher of: (i) the rate that Morgan Stanley Senior Funding, Inc. as Administrative Agent announces from time to time as its prime or base commercial lending rate, as in effect from time to time, (ii) the Federal Funds Effective Rate plus ½ of 1.0% and (iii) one-month Adjusted LIBOR plus 1.0% . The 2018 Term Facility has an original issue discount of 1.5% and the Company incurred approximately $33.0 million in debt issuance costs. The original issue discount and the debt issuance costs will be reported on the balance sheet as adjustments to the carrying amount of the debt liability and will be amortized into interest expense using the effective interest method. Commitment fees related to the 2018 Revolving Facility will be recorded as an asset and amortized over the contractual term. Interest Rate Swap —To mitigate the risk of a rise in interest rates, the Company entered into multiple interest rate swap transactions during April 2018. These interest rate swaps mitigate the exposure on the variable component of interest on the Term Facility discussed above. The transactions fix the LIBOR rate component of interest on $600.0 million of the Term Facility at a weighted average rate of approximately 2.8% . These interest rate swap transactions are designated as cash flow hedges and are deemed highly effective under ASC 815, Derivatives and Hedging . The interest rate swap transactions will be recorded on the balance sheet at fair value and any changes to the fair value will be recorded through accumulated other comprehensive income and reclassified into interest expense in the same period in which the hedged transaction is recognized in earnings.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements have been prepared by Inovalon Holdings, Inc. (the “Company”) in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and as required by Rule 10-01 of Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements may not include all of the information and notes required by GAAP for audited financial statements. The year-end December 31, 2017 condensed consolidated balance sheet data included herein was derived from audited financial statements but does not include all disclosures required by GAAP for complete financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of items of a normal and recurring nature, necessary to present fairly the Company’s financial position as of March 31, 2018 , the results of operations and comprehensive income for the three month periods ended March 31, 2018 and 2017 , and cash flows for the three months ended March 31, 2018 and 2017 . The results of operations for the three month periods ended March 31, 2018 and 2017 are not necessarily indicative of the results to be expected for the full year. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities, and related disclosures, as of the date of the financial statements, and the amounts of revenue and expenses reported during the period. Actual results could differ from estimates. The information contained herein should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “ 2017 Form 10-K”). Certain prior period amounts have been reclassified within the operating section of the condensed consolidated statements of cash flows, and within the investing section of the statements of cash flows to conform with current period presentation. Such reclassifications had no impact on net cash provided by operating activities or net cash provided by (used in) investing activities as previously reported. The accompanying unaudited condensed consolidated financial statements include the accounts of Inovalon Holdings, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s management considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements.
Recently Issued Accounting Standards	Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers and subsequent clarifying guidance (“ASU 2014-09”). The core principle 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. The Company adopted this standard on January 1, 2018 using the modified retrospective approach. Refer to Note 2, “Revenue.” In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The update amends the guidance in Accounting Standards Codification (“ASC”) 230, Statement of Cash Flows , and clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows with the objective of reducing the existing diversity in practice related to eight specific cash flow issues. The Company adopted the requirements of the new standard in the first quarter of 2018 and there was no material impact on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The guidance is effective for all public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This guidance allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) which was signed into law on December 22, 2017. Early adoption is permitted in any interim period or fiscal year before the effective date. The Company early adopted the requirements of the new standard in the first quarter of 2018, and elected to reclassify the income tax effects of the Tax Act of $0.1 million from other comprehensive income to retained earnings. Refer to the condensed consolidated statements of comprehensive income. Recently Issued Accounting Standards There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and note disclosures, from those disclosed in the 2017 Form 10-K, that would be expected to impact the Company except for the following: In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815)-Targeted Improvements to Accounting for Hedging Activities. The update amends the current hedge accounting model and eliminates the requirement to separately measure and report hedge ineffectiveness. This guidance also requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line item as the hedged item. The update also eases documentation and assessment requirements, modifies certain disclosure requirements, and modifies the method of accounting for components excluded from the assessment of hedge effectiveness. The Company plans to adopt the requirements of the new standard in the second quarter of 2018.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates revenue by offering (in thousands): Three Months Ended 2018 2017 (1) Platform solutions (2) $ 78,966 $ 91,432 Services (3) 13,789 16,874 Total revenue $ 92,755 $ 108,306 ______________________________________ (1) Prior period amounts have not been adjusted under the modified retrospective method. (2) Platform solutions include arrangements for technology-based offerings representing subscription-based cloud-based platform offerings and legacy platform solutions that are not cloud-based and not billed under a subscription-based contract structure. (3) Services include advisory, implementation, and support services under time and materials, fixed price, or retainer-based contracts.

NET (LOSS) INCOME PER SHARE (Ta

NET (LOSS) INCOME PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of numerators and denominators of the basic and diluted EPS	The following table reconciles the weighted average shares outstanding for basic and diluted EPS for the periods indicated (in thousands, except per share amounts): Three Months Ended 2018 2017 Basic Numerator: Net (loss) income $ (16,834 ) $ 3,642 Undistributed loss (earnings) allocated to participating securities 562 (73 ) Net (loss) income attributable to common stockholders—basic $ (16,272 ) $ 3,569 Denominator: Weighted average shares used in computing net income per share attributable to common stockholders—basic 139,378 144,729 Net (loss) income per share attributable to common stockholders—basic $ (0.12 ) $ 0.02 Diluted Numerator: Net (loss) income attributable to common stockholders—diluted $ (16,272 ) $ 3,569 Denominator: Number of shares used for basic EPS computation 139,378 144,729 Effect of dilutive securities — 436 Weighted average shares used in computing net income per share attributable to common stockholders—diluted 139,378 145,165 Net (loss) income per share attributable to common stockholders—diluted $ (0.12 ) $ 0.02
Schedule of antidilutive securities excluded from computation of earnings per share	The awards excluded because of their anti-dilutive effect are as follows (in thousands): Three Months Ended 2018 2017 Awards excluded from the computation of diluted net (loss) income per share because their inclusion would have been anti-dilutive 118 168

SHORT-TERM INVESTMENTS (Tables)

SHORT-TERM INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of short-term investments	As of March 31, 2018 , short-term investments consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Corporate notes and bonds $ 37,401 $ — $ (140 ) $ 37,261 U.S. agency obligations 3,015 — (1 ) 3,014 Total available-for-sale securities $ 40,416 $ — $ (141 ) $ 40,275 As of December 31, 2017 , short-term investments consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Corporate notes and bonds $ 232,048 $ 3 $ (572 ) $ 231,479 U.S. agency obligations 15,341 — (99 ) 15,242 U.S. treasury securities 20,735 — (168 ) 20,567 Total available-for-sale securities $ 268,124 $ 3 $ (839 ) $ 267,288
Summary of estimated fair value of short-term investments, designated as available-for-sale and classified by the contractual maturity	The following table summarizes the estimated fair value of our short-term investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of the dates shown (in thousands): March 31, December 31, Due in one year or less $ 38,484 $ 204,725 Due after one year through two years 1,791 62,563 Total $ 40,275 $ 267,288
Schedule of fair values and gross unrealized losses of available-for-sale securities aggregated by investment category	The following table shows the fair values and the gross unrealized losses of available-for-sale securities that were in a gross unrealized loss position, as of March 31, 2018 , aggregated by investment category (in thousands): Estimated Fair Value Gross Unrealized Losses Corporate notes and bonds $ 37,261 $ (140 ) U.S. agency obligations 3,014 (1 ) $ 40,275 $ (141 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis	The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 (in thousands): Level 1 Level 2 Level 3 Total Cash Equivalents: Money market funds $ 138 $ — $ — $ 138 Short-term investments: Corporate notes and bonds — 37,261 — 37,261 U.S. agency obligations — 3,014 — 3,014 Liabilities: Contingent consideration — — (7,600 ) (7,600 ) Total $ 138 $ 40,275 $ (7,600 ) $ 32,813 The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 (in thousands): Level 1 Level 2 Level 3 Total Cash Equivalents: Money market funds $ 162,347 $ — $ — $ 162,347 Short-term investments: Corporate notes and bonds — 231,479 — 231,479 U.S. agency obligations — 15,242 — 15,242 U.S. treasury securities — 20,567 — 20,567 Other Current Liabilities: Contingent consideration — — (7,400 ) (7,400 ) Total $ 162,347 $ 267,288 $ (7,400 ) $ 422,235
Schedule of financial instruments measured at fair value using unobservable inputs (Level 3)	The following table presents our financial instruments measured at fair value using unobservable inputs (Level 3) (in thousands): Fair Value Measurements Using Unobservable Inputs (Level 3) March 31, December 31, Balance, beginning of period $ (7,400 ) $ (12,600 ) Fair value adjustment (recognized in general and administrative expenses) (200 ) 5,200 Total $ (7,600 ) $ (7,400 )

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassification of income tax effects of the Tax Cuts and Jobs Act of 2017	$ 102	$ 0

REVENUE - Additional Informatio

REVENUE - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained earnings	$ 292,801			$ 308,905
Revenue	92,755	$ 108,306
Unbilled receivables	11,400			$ 14,100
Deferred revenue, revenue recognized	1,800
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained earnings			$ 600
Revenue	200
Sales commissions	$ 100

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 92,755	$ 108,306
Platform Solutions
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	78,966	91,432
Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 13,789	$ 16,874

NET (LOSS) INCOME PER SHARE - T

NET (LOSS) INCOME PER SHARE - Tabular Disclosure (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Basic
Net (loss) income	$ (16,834)	$ 3,642
Undistributed loss (earnings) allocated to participating securities	562	(73)
Net (loss) income attributable to common stockholders—basic	$ (16,272)	$ 3,569
Weighted average shares used in computing net income per share attributable to common stockholders - basic (in shares)	139,378	144,729
Net (loss) income per share attributable to common stockholders - basic (in dollars per share)	$ (0.12)	$ 0.02
Diluted
Net (loss) income attributable to common stockholders—diluted	$ (16,272)	$ 3,569
Effect of dilutive securities (in shares)	0	436
Weighted average shares used in computing net income per share attributable to common stockholders - diluted (in shares)	139,378	145,165
Net (loss) income per share attributable to common stockholders - diluted (in dollars per share)	$ (0.12)	$ 0.02

NET (LOSS) INCOME PER SHARE - A

NET (LOSS) INCOME PER SHARE - Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Equity awards
NET INCOME PER SHARE
Awards excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive (in shares)	118	168

SHORT-TERM INVESTMENTS - Availa

SHORT-TERM INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale securities:
Amortized Cost	$ 40,416	$ 268,124
Gross Unrealized Gains	0	3
Gross Unrealized Losses	(141)	(839)
Estimated Fair Value	40,275	267,288
Corporate notes and bonds
Available-for-sale securities:
Amortized Cost	37,401	232,048
Gross Unrealized Gains	0	3
Gross Unrealized Losses	(140)	(572)
Estimated Fair Value	37,261	231,479
U.S. agency obligations
Available-for-sale securities:
Amortized Cost	3,015	15,341
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1)	(99)
Estimated Fair Value	$ 3,014	15,242
U.S. treasury securities
Available-for-sale securities:
Amortized Cost		20,735
Gross Unrealized Gains		0
Gross Unrealized Losses		(168)
Estimated Fair Value		$ 20,567

SHORT-TERM INVESTMENTS - Estima

SHORT-TERM INVESTMENTS - Estimated Fair Value by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Due in one year or less	$ 38,484	$ 204,725
Due after one year through two years	1,791	62,563
Available-for-sale Securities, Debt Securities, Current	40,275
Total	$ 40,275	$ 267,288

SHORT-TERM INVESTMENTS - Other-

SHORT-TERM INVESTMENTS - Other-than-temporary Impairments (Details)	3 Months Ended
	Mar. 31, 2018USD ($)
Investments, Debt and Equity Securities [Abstract]
Other-than-temporary impairments	$ 0

SHORT-TERM INVESTMENTS - Fair V

SHORT-TERM INVESTMENTS - Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position (Details) $ in Thousands	Mar. 31, 2018USD ($)
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	$ 40,275
Gross Unrealized Losses	(141)
Corporate notes and bonds
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	37,261
Gross Unrealized Losses	(140)
U.S. agency obligations
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	3,014
Gross Unrealized Losses	$ (1)

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Short-term investments:
Short-term investments	$ 40,275	$ 267,288
Corporate notes and bonds
Short-term investments:
Short-term investments	37,261	231,479
U.S. agency obligations
Short-term investments:
Short-term investments	3,014	15,242
U.S. treasury securities
Short-term investments:
Short-term investments		20,567
Recurring
Total
Total	32,813	422,235
Recurring | Level 1
Total
Total	138	162,347
Recurring | Level 2
Total
Total	40,275	267,288
Recurring | Level 3
Total
Total	(7,600)	(7,400)
Recurring | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	(7,600)	(7,400)
Recurring | Contingent consideration | Level 1
Liabilities / Other Current Liabilities:
Contingent consideration	0	0
Recurring | Contingent consideration | Level 2
Liabilities / Other Current Liabilities:
Contingent consideration	0	0
Recurring | Contingent consideration | Level 3
Liabilities / Other Current Liabilities:
Contingent consideration	(7,600)	(7,400)
Recurring | Corporate notes and bonds
Short-term investments:
Short-term investments	37,261	231,479
Recurring | Corporate notes and bonds | Level 1
Short-term investments:
Short-term investments	0	0
Recurring | Corporate notes and bonds | Level 2
Short-term investments:
Short-term investments	37,261	231,479
Recurring | Corporate notes and bonds | Level 3
Short-term investments:
Short-term investments	0	0
Recurring | U.S. agency obligations
Short-term investments:
Short-term investments	3,014	15,242
Recurring | U.S. agency obligations | Level 1
Short-term investments:
Short-term investments	0	0
Recurring | U.S. agency obligations | Level 2
Short-term investments:
Short-term investments	3,014	15,242
Recurring | U.S. agency obligations | Level 3
Short-term investments:
Short-term investments	0	0
Recurring | U.S. treasury securities
Short-term investments:
Short-term investments		20,567
Recurring | U.S. treasury securities | Level 1
Short-term investments:
Short-term investments		0
Recurring | U.S. treasury securities | Level 2
Short-term investments:
Short-term investments		20,567
Recurring | U.S. treasury securities | Level 3
Short-term investments:
Short-term investments		0
Recurring | Money market funds
Cash Equivalents:
Cash equivalents	138	162,347
Recurring | Money market funds | Level 1
Cash Equivalents:
Cash equivalents	138	162,347
Recurring | Money market funds | Level 2
Cash Equivalents:
Cash equivalents	0	0
Recurring | Money market funds | Level 3
Cash Equivalents:
Cash equivalents	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Unobs

FAIR VALUE MEASUREMENTS - Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair Value Measurements Using Unobservable Inputs (Level 3)
Balance, beginning of period	$ (7,400)	$ (12,600)
Fair value adjustment (recognized in general and administrative expenses)	(200)	5,200
Total	$ (7,600)	$ (7,400)

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - ComplexCare Solutions, Inc. - USD ($) $ in Millions	Jul. 06, 2017	Dec. 31, 2017
Business Acquisition [Line Items]
Payments to acquire businesses, gross	$ 4.5
Liabilities incurred	2.3
Assets acquired	9.8
Cash acquired	1.5
Liabilities assumed	$ 3.9
Bargain purchase, gain recognized, amount		$ 1.4

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event facility in Thousands, shares in Millions, $ in Millions	Apr. 02, 2018USD ($)facilityshares
Interest Rate Swap
Subsequent Event [Line Items]
Interest rate cash flow hedge asset at fair value	$ 600
Derivative, fixed interest rate	2.80%
Line of Credit
Subsequent Event [Line Items]
Face amount	$ 980
Line of Credit | London Interbank Offered Rate (LIBOR)
Subsequent Event [Line Items]
Basis spread on variable rate	3.50%
Line of Credit | Federal Funds Effective Swap Rate
Subsequent Event [Line Items]
Basis spread on variable rate	0.50%
Line of Credit | Adjusted LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate	1.00%
Discount rate	1.50%
Debt issuance costs, net	$ 33
Line of Credit | Applicable Rate if Leverage Ratio is Equal to or Falls Below 4.00 to 1.00 | London Interbank Offered Rate (LIBOR)
Subsequent Event [Line Items]
Basis spread on variable rate	3.25%
Revolving Credit Facility
Subsequent Event [Line Items]
Face amount	$ 100
Butler Group Holdings, Inc.
Subsequent Event [Line Items]
Consideration transferred	$ 1,170
Number of provider facilities | facility	44
Payments to acquire businesses, gross	$ 1,100
Equity interest issued or issuable (in shares) | shares	7.6
Equity interests issued and issuable	$ 70