Evolent Health (EVH) 10-K 3 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Feb. 24, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Evolent Health, Inc.
Entity Central Index Key	1,628,908
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Volunteer Filers	No
Entity Well-Known Seasoned Issuer	No
Public Float			$ 284
Document Year Focus	2,016
Document Fiscal Period Focus	FY
Class A
Entity Common Stock, Shares Outstanding		52,612,764
Class B
Entity Common Stock, Shares Outstanding		15,346,981

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 134,563,000	$ 145,726,000
Restricted cash and restricted investments	34,416,000	4,703,000
Accounts receivable, net (amounts related to affiliates: 2016 - $8,258; 2015 - $10,185)	40,635,000	20,381,000
Prepaid expenses and other current assets (amounts related to affiliates: 2016 - $4,507; 2015 - $1,220)	11,011,000	4,208,000
Investments, at amortized cost	44,341,000	9,445,000
Total current assets	264,966,000	184,463,000
Restricted cash and restricted investments	6,000,000	1,582,000
Investments, at amortized cost	0	44,618,000
Investments in and advances to affiliates	2,159,000	0
Property and equipment, net	31,179,000	12,796,000
Prepaid expenses and other non-current assets	10,043,000	0
Intangible assets, net	258,923,000	163,152,000
Goodwill	626,569,000	608,903,000
Total assets	1,199,839,000	1,015,514,000
Current liabilities:
Accounts payable (amounts related to affiliates: 2016 - $13,480; 2015 - $13,311)	43,892,000	16,699,000
Accrued liabilities (amounts related to affiliates: 2016 - $3,211; 2015 - $828)	29,160,000	6,047,000
Accrued compensation and employee benefits	38,408,000	21,925,000
Deferred revenue	20,481,000	14,835,000
Total current liabilities	131,941,000	59,506,000
Long-term debt, net of discount	120,283,000	0
Other long-term liabilities	14,655,000	111,000
Deferred tax liabilities, net	20,846,000	21,318,000
Total liabilities	287,725,000	80,935,000
Commitments and Contingencies (See Note 9)
Shareholders' Equity (Deficit)
Additional paid-in-capital	555,250,000	342,063,000
Retained earnings (accumulated deficit)	146,617,000	306,688,000
Total shareholders' equity (deficit) attributable to Evolent Health, Inc.	702,526,000	649,341,000
Non-controlling interests	209,588,000	285,238,000
Total equity (deficit)	912,114,000	934,579,000
Total liabilities, redeemable preferred stock and shareholders' equity (deficit)	1,199,839,000	1,015,514,000
Class A
Shareholders' Equity (Deficit)
Common stock	506,000	415,000
Class B
Shareholders' Equity (Deficit)
Common stock	$ 153,000	$ 175,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts receivable, related parties	$ 8,258	$ 10,185
Prepaid expenses and other current assets, related parties	4,507	1,220
Accounts payable, related parties	13,480	13,311
Accrued liabilities, related parties	$ 3,211	$ 828
Class A
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares, issued	52,586,899	41,491,498
Common stock, shares, outstanding	52,589,899	41,491,498
Class B
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares, issued	15,346,981	17,524,596
Common stock, shares, outstanding	15,346,981	17,524,596

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue
Transformation	[1]	$ 38,320,000	$ 19,906,000	$ 0
Platform and operations	[1]	215,868,000	76,972,000	0
Total revenue		254,188,000	96,878,000	0
Expenses
Cost of revenue (exclusive of depreciation and amortization expenses)	[1]	155,177,000	57,398,000	0
Selling, general and administrative expenses	[1]	160,692,000	75,286,000	0
Depreciation and amortization expenses		17,224,000	7,166,000	0
Goodwill impairment		160,600,000	0	0
(Gain) loss on change in fair value of contingent consideration		(2,086,000)	0	0
Total operating expenses		491,607,000	139,850,000	0
Operating income (loss)		(237,419,000)	(42,972,000)	0
Interest income (expense), net		723,000	293,000	0
Gain on consolidation		0	414,133,000	0
Income (loss) from affiliates		(841,000)	(28,165,000)	(25,246,000)
Other income (expense), net		4,000	0	0
Income (loss) before income taxes and non-controlling interests		(237,533,000)	343,289,000	(25,246,000)
Provision (benefit) for income taxes		(10,755,000)	23,475,000	0
Net income (loss)		(226,778,000)	319,814,000	(25,246,000)
Net income (loss) attributable to non-controlling interests		(67,036,000)	(12,680,000)	0
Net income (loss) attributable to Evolent Health, Inc.		(159,742,000)	332,494,000	(25,246,000)
Earnings (Loss) Available to Common Shareholders
Basic		(159,742,000)	330,310,000	(31,137,000)
Diluted		$ (159,742,000)	$ 319,814,000	$ (31,137,000)
Earnings (Loss) per Common Share
Basic (in dollars per share)		$ (3.55)	$ 13.14	$ (13.46)
Diluted (in dollars per share)		$ (3.55)	$ 6.93	$ (13.46)
Weighted-Average Common Shares Outstanding
Basic (in shares)		45,031	25,129	2,314
Diluted (in shares)		45,031	46,136	2,314
Affiliates
Revenue
Transformation		$ 482,000	$ 940,000	$ 0
Platform and operations		34,267,000	23,642,000	0
Expenses
Cost of revenue (exclusive of depreciation and amortization expenses)		22,207,000	14,050,000	0
Selling, general and administrative expenses		$ 2,027,000	$ 1,542,000	$ 0
[1]	Amounts related to affiliates included above are as follows (see Note 15): Revenue Transformation$482 $940 $—Platform and operations34,267 23,642 —Expenses Cost of revenue (exclusive of depreciation and amortization expenses)22,207 14,050 —Selling, general and administrative expenses2,027 1,542 —

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows from Operating Activities
Net income (loss)	$ (226,778)	$ 319,814	$ (25,246)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Gain on consolidation	0	(414,133)	0
Gain on change in fair value of contingent liability	(2,086)	0	0
Loss from lease abandonment	6,456	0	0
(Income) loss from affiliates	841	28,165	25,246
Depreciation and amortization expenses	17,224	7,166	0
Goodwill impairment	160,600	0	0
Stock-based compensation expense	18,604	14,730	0
Acceleration of unvested equity awards for Valence employees	3,897	0	0
Deferred tax provision (benefit)	(10,755)	23,460	0
Other	916	172	0
Changes in assets and liabilities, net of acquisitions:
Accounts receivables, net	(11,044)	11,756	0
Prepaid expenses and other current assets	(9,968)	(2,036)	0
Accounts payable	(6,371)	2,764	0
Accrued liabilities	15,229	(3,788)	0
Accrued compensation and employee benefits	6,678	11,402	0
Deferred revenue	1,200	(17,998)	0
Other current liabilities	0	58	0
Other long-term liabilities	(153)	0	0
Net cash provided by (used in) operating activities	(35,510)	(18,468)	0
Cash Flows from Investing Activities
Cash acquired upon consolidation of affiliate	0	13,065	0
Cash paid for asset acquisition or business combination	(82,560)	0	0
Purchases of investments	0	(54,234)	0
Investments in and advances to affiliates	(3,000)	0	0
Maturities and sales of investments	9,379	4,000	0
Purchases of property and equipment	(15,526)	(6,515)	0
Change in restricted cash and restricted investments	(6,090)	0	0
Net cash provided by (used in) investing activities	(97,797)	(43,684)	0
Cash Flows from Financing Activities
Proceeds from initial public offering, net of offering costs	0	209,087	0
Proceeds from stock option exercises	1,259	152	0
Proceeds from issuance of convertible notes, net of issuance costs	121,250	0	0
Payments of deferred offering costs	0	(1,361)	0
Taxes withheld for vesting of restricted stock units	(365)	0	0
Net cash provided by (used in) financing activities	122,144	207,878	0
Net increase (decrease) in cash and cash equivalents	(11,163)	145,726	0
Cash and cash equivalents as of beginning-of-year	145,726	0	0
Cash and cash equivalents as of end-of-year	134,563	145,726	0
Supplemental Disclosure of Non-cash Investing and Financing Activities
Non-cash contribution of common stock to Evolent Health LLC prior to the Offering Reorganization	0	21,810	11,091
Non-cash deferred financing costs payable	1,036	0	0
Acquisition consideration payable	1,148	0	0
Accrued property and equipment purchases	446	0	0
Effects of the Offering Reorganization
Reclassification of deferred offering costs acquired to additional paid-in capital	0	3,154	0
Conversion of existing equity as part of the Offering Reorganization	0	39,014	0
Assumption of non-controlling interest as a result of merger with TPG affiliate	0	34,875	0
Effects of the Secondary Offering
Decrease in non-controlling interests as a result of the Exchange	28,220	0	0
Series A Preferred Stock
Supplemental Disclosure of Non-cash Investing and Financing Activities
Non-cash repurchase of series A preferred stock	0	0	(1,500)
Series B-1 Redeemable Preferred Stock
Supplemental Disclosure of Non-cash Investing and Financing Activities
Issuance of stock	0	0	1,593
Class A Common Stock
Supplemental Disclosure of Non-cash Investing and Financing Activities
Issuance of stock	177,795	0	325
Class B Common Stock
Supplemental Disclosure of Non-cash Investing and Financing Activities
Issuance of stock	$ 0	$ 196	$ 0

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) AND REDEEMABLE PREFERRED STOCK - USD ($) shares in Thousands, $ in Thousands	Total	Class A	Preferred StockSeries A Redeemable	Preferred StockSeries B Redeemable	Preferred StockSeries B-1 Redeemable	Preferred StockSeries A	Common StockClass A	Common StockClass B	Additional Paid-in Capital	Additional Paid-in CapitalClass A	Retained Earnings (Accumulated Deficit)	Non-controlling Interests
Beginning balance, shares at Dec. 31, 2013			7,900	6,468	0
Beginning balance, amount at Dec. 31, 2013			$ 12,847	$ 24,833	$ 0
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of preferred stock, shares					360
Issuance of preferred stock, amount					$ 1,593
Ending balance, shares at Dec. 31, 2014			7,900	6,468	360
Ending balance, amount at Dec. 31, 2014			$ 12,847	$ 24,833	$ 1,593
Beginning balance, shares at Dec. 31, 2013						7,700	3,824	0
Beginning balance, amount at Dec. 31, 2013	$ 13,260					$ 2	$ 0	$ 0	$ 13,818		$ (560)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, shares							272
Issuance of common stock, amount	325						$ 1		324
Non-cash issuance of common stock to Evolent Health, LLC	11,091								11,091
Repurchase of series A preferred stock, shares						(300)
Repurchase of series A preferred stock, value	(1,500)								(1,500)		0	0
Forfeiture of restricted stock, shares							(48)
Net income (loss) subsequent to the Offering Reorganization attributable to non-controlling interests	0
Net income (loss)	(25,246)										(25,246)
Ending balance, shares at Dec. 31, 2014						7,400	4,048	0
Ending balance, amount at Dec. 31, 2014	(2,070)					$ 2	$ 1	$ 0	23,733		(25,806)	0
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of existing equity, shares			(7,900)	(6,468)	(360)
Conversion of existing equity, amount			$ (12,847)	$ (24,833)	$ (1,593)
Ending balance, shares at Dec. 31, 2015			0	0	0
Ending balance, amount at Dec. 31, 2015			$ 0	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, shares							13,225	19,576
Issuance of common stock, amount	332,793	$ 205,933					$ 132	$ 196	(196)	$ 205,801		332,793
Non-cash issuance of common stock to Evolent Health, LLC	21,810								21,810
Net income (loss) prior to the Offering Reorganization	(28,165)										(28,165)
Conversion of existing equity, shares						(7,400)	22,128
Conversion of existing equity, amount	39,273					$ (2)	$ 261		39,014
Business combination, shares							2,051	(2,051)
Business combination, value	0						$ 21	$ (21)	34,875			(34,875)
Tax effect of the Offering Reorganization	2,144								2,144
Stock-based compensation expense	14,730								14,730
Exercise of stock options, shares							39
Exercise of stock options, amount	152								152
Net income (loss) subsequent to Offering Reorganization, including portion attributable to non-controlling interest											360,659
Net income (loss) subsequent to the Offering Reorganization attributable to non-controlling interests	(12,680)											(12,680)
Net income (loss) subsequent to Offering Reorganization	347,979
Cumulative-effect adjustment from adoption of new accounting principle												0
Reclassification of non-controlling interests												0
Net income (loss)	319,814
Ending balance, shares at Dec. 31, 2015						0	41,491	17,525
Ending balance, amount at Dec. 31, 2015	934,579					$ 0	$ 415	$ 175	342,063		306,688	285,238
Ending balance, shares at Dec. 31, 2016			0	0	0
Ending balance, amount at Dec. 31, 2016			$ 0	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of existing equity, shares							2,178	(2,178)
Conversion of existing equity, amount	0						$ 22	$ (22)	28,220			(28,220)
Business combination, shares							8,451
Business combination, value	177,782						$ 67		177,715
Tax impact of stock issued for business combinations	1,427								1,427
Stock-based compensation expense	16,147								16,147
Acceleration of unvested equity awards for Valence Health employees, shares							162
Acceleration of unvested equity awards for Valence Health employees	3,899						$ 2		3,897
Exercise of stock options, amount	1,259						$ 221		1,259
Net income (loss) subsequent to the Offering Reorganization attributable to non-controlling interests	(67,036)											(67,036)
Cumulative-effect adjustment from adoption of new accounting principle	0								468		(329)	(139)
Restricted stock units vested, net of shares withheld for taxes, shares							84
Restricted stock units vested, net of shares, amount	2,193								2,193
Tax impact of Class B common stock exchange	1,606								1,606
Reclassification of non-controlling interests	0								(19,745)			19,745
Net income (loss)	(226,778)										(159,742)	(67,036)
Ending balance, shares at Dec. 31, 2016						0	52,587	15,347
Ending balance, amount at Dec. 31, 2016	$ 912,114					$ 0	$ 506	$ 153	$ 555,250		$ 146,617	$ 209,588

Organization

Organization	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Evolent Health, Inc. was incorporated in December 2014 in the state of Delaware, and is a managed services firm that supports leading health systems and physician organizations in their migration toward value-based care and population health management. The Company’s services include providing our customers, who we refer to as partners, with a population management platform, integrated data and analytics capabilities, PBM services and comprehensive health plan administration services. Together these services enable health systems to manage patient health in a more cost-effective manner. The Company’s contracts are structured as a combination of advisory fees, monthly member service fees, percentage of plan premiums and shared medical savings arrangements. The Company’s headquarters is located in Arlington, Virginia. Our predecessor, Evolent Health Holdings, Inc. (“Evolent Health Holdings”), merged with and into Evolent Health, Inc. in connection with the Offering Reorganization. As a result, the consolidated financial statements of Evolent Health, Inc. reflect the historical accounting of Evolent Health Holdings. Prior to the organizational transactions noted below, due to certain participating rights granted to our investor, TPG Global, LLC and certain of its affiliates (“TPG”), Evolent Health Holdings did not control Evolent Health LLC, our operating subsidiary company, but was able to exert significant influence and, accordingly, accounted for its investment in Evolent Health LLC using the equity method of accounting through June 3, 2015. Subsequent to the Offering Reorganization, IPO, secondary offering (as described below) and acquisitions (as described in Note 4 ), as of December 31, 2016 , Evolent Health, Inc. owned 77.4% of Evolent Health LLC, holds 100% of the voting rights, is the sole managing member and, therefore, controls its operations. The financial results of Evolent Health LLC are consolidated in the financial statements of Evolent Health, Inc. subsequent to the Offering Reorganization. Initial Public Offering In June 2015, we completed an IPO of 13.2 million shares of our Class A common stock at a public offering price of $17.00 per share. We received $209.1 million in proceeds, net of underwriting discounts and commissions. Offering expenses incurred were $3.2 million which were recorded as a reduction of proceeds from the offering. We used the net proceeds to purchase newly-issued Class A common units from Evolent Health LLC, our consolidated subsidiary. Evolent Health LLC will use the net proceeds for working capital and other general corporate and strategic purposes. See Note 4 for further details surrounding the IPO and related transactions. Organizational Transactions In connection with the IPO, we completed the following organizational transactions (the “Offering Reorganization”) as further described in Note 4 : • We amended and restated our certificate of incorporation to, among other things, authorize two classes of common stock - Class A common stock and Class B exchangeable common stock. Both classes of stock will vote together as a single class. • We acquired, by merger, an affiliate of a member of Evolent Health LLC, for which we issued 2.1 million shares of Class A common stock. • We issued shares of our Class B exchangeable common stock to certain existing members of Evolent Health LLC. Secondary Offering In September 2016, the Company completed a secondary offering of 8.6 million shares of its Class A common stock at a public offering price of $22.50 per share. The shares sold in the offering were sold by certain affiliates of TPG, The Advisory Board, UPMC, Ptolemy Capital, LLC (together, the “Investor Stockholders”) and certain management selling stockholders (together with the Investor Stockholders, the “Selling Stockholders”). The Company did not receive any proceeds from the sale of the shares. The shares sold in the offering consisted of 6.4 million existing shares of the Company’s Class A common stock owned and held by the Selling Stockholders and 2.2 million newly-issued shares of the Company’s Class A common stock received by certain Investor Stockholders pursuant to the exercise of an existing exchange right. The newly-issued shares of the Company’s Class A common stock were issued to certain Investor Stockholders in exchange (the “Exchange”) for an equal number of shares of the Company’s Class B common stock (which were subsequently canceled) and an equal number of Evolent Health LLC’s Class B common units (“Class B units”). Class B units received by the Company from relevant Investor Stockholders were simultaneously exchanged for an equivalent number of Class A units of Evolent Health LLC, and Evolent Health LLC canceled the Class B units it received in the Exchange. As a result of the Exchange and Evolent Health LLC’s cancellation of the Class B units, the Company’s economic interest in Evolent Health LLC increased from 71.0% to 74.6% as of September 19, 2016, and, accordingly, we reclassified a portion of our non-controlling interests into shareholders’ equity attributable to Evolent Health, Inc. The Company’s economic interest in Evolent Health LLC will increase if further exchanges occur. Since its inception, the Company has incurred losses from operations. As of December 31, 2016 , the Company had cash and cash equivalents of $134.6 million . The Company believes it has sufficient liquidity for the next twelve months as of the date the financial statements were available to be issued.

Basis of Presentation, Summary

Basis of Presentation, Summary of Significant Accounting Policies and Change in Accounting Principle	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation, Summary of Significant Accounting Policies and Change in Accounting Principle	Basis of Presentation, Summary of Significant Accounting Policies and Change in Accounting Principle Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with GAAP. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. As discussed in Note 4 , amounts as of and for the year ended December 31, 2014, and for the period January 1, 2015, through June 3, 2015, presented in our consolidated financial statements and notes to consolidated financial statements represent the historical operations of our predecessor entity, Evolent Health Holdings, which did not consolidate the operations of Evolent Health LLC for the period September 24, 2013, through June 3, 2015. The amounts as of December 31, 2015, for the period from June 4, 2015, through December 31, 2015, and as of and for the year ended December 31, 2016, reflect our operations, which consolidate the operations of Evolent Health LLC. Amounts as of and for the year ended December 31, 2016, also reflect the results of operations of Valence Health and Aldera from October 3, 2016, and November 1, 2016, respectively. All inter-company accounts and transactions have been eliminated in consolidation. Summary of Significant Accounting Policies Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. In the accompanying consolidated financial statements, estimates are used for, but not limited to, the valuation of assets, liabilities, consideration related to business combinations and step acquisitions, revenue recognition including discounts and credits, estimated selling prices for deliverables in multiple element arrangements, contingent payments, allowance for doubtful accounts, depreciable lives of assets, impairment of long lived assets (including equity method investments), stock-based compensation, deferred income taxes and valuation allowance, contingent liabilities, valuation of intangible assets (including goodwill) and the useful lives of intangible assets. Principles of Consolidation The consolidated financial statements include the accounts of Evolent Health, Inc. and its subsidiaries. All inter-company accounts and transactions are eliminated in consolidation. Comprehensive Income No elements of comprehensive income were present for any periods presented. Fair Value Measurement Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. Our Consolidated Balance Sheets include various financial instruments (primarily cash not held in money-market funds, restricted cash, accounts receivable, accounts payable, accrued expenses, deferred revenue and other liabilities) that are carried at cost and that approximate fair value. See Note 16 for further discussion regarding fair value measurement. Cash and Cash Equivalents We consider all highly liquid instruments with original maturities of three months or less to be cash equivalents. The Company holds materially all of our cash in bank deposits with FDIC participating banks, at cost, which approximates fair value. Cash and cash equivalents held in money market funds are carried at fair value, which approximates cost. Restricted Cash and Restricted Investments Restricted cash and restricted investments are carried at cost and include cash and investments used to collateralize various contractual obligations (in thousands) as follows: As of December 31, 2016 2015 Collateral for letters of credit for facility leases (1) $ 4,852 $ 3,710 Collateral with financial institutions (2) 4,950 — Pharmacy benefit management and claims processing services (3) 30,555 2,479 Other 59 96 Total restricted cash and restricted investments 40,416 6,285 Non-current restricted investments (2) 4,950 — Non-current restricted cash (1) 1,050 1,582 Total non-current restricted cash and restricted investments 6,000 1,582 Current restricted cash and restricted investments $ 34,416 $ 4,703 (1) Represents restricted cash of approximately $4.9 million related to collateral for letters of credit required in conjunction with lease agreements. See Note 9 for further discussion of our lease commitments. (2) Represents collateral for letters of credit held with financial institutions for risk-sharing arrangements. The collateral amount is invested in restricted certificates of deposit with original maturities in excess of 12 months. The restricted investments are classified as held-to-maturity and stated at cost. Fair value of the certificates of deposit is determined using Level 2 inputs and approximates cost as of December 31, 2016. See Note 9 for further discussion of our risk-sharing arrangements. (3) Represents cash held on behalf of clients to process PBM and other claims. Approximately $27.0 million of the amount in this category is related to a new client relationship established during 2016. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded when amounts are contractually billable under our customer contracts and are recorded at the invoiced amount and do not bear interest. The Company’s contracts typically include installment payments that do not necessarily correlate to the pattern of revenue recognition. In assessing the valuation of the allowance for doubtful accounts, management reviews the collectability of accounts receivable on an individual account basis. The allowance is adjusted periodically based on management’s determination of collectability, and any accounts that are determined to be uncollectible are written off against the allowance. The Company did no t record an allowance for doubtful accounts in 2016 or 2015 , as all amounts were determined to be collectible. Due to the timing of invoicing, the Company had recorded unbilled receivables of $1.8 million and $0.1 million as of December 31, 2016 and 2015 , respectively. Unbilled receivables are considered short-term and generally invoiced subsequent to the month the services are provided. While terms vary by contract, payment for services is typically contractually linked to the provision of specified services, with the timing of invoicing occurring in advance or subsequent to the services period. Property and Equipment, Net Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are computed using the straight-line method over the shorter of the estimated useful lives of the assets or the lease term. The following summarizes the estimated useful lives by asset classification: Computer hardware 3 years Furniture and equipment 3 years Internal-use software development costs 7 years Leasehold improvements Shorter of useful life or remaining lease term When an item is sold or retired, the cost and related accumulated depreciation or amortization is eliminated and the resulting gain or loss, if any, is recorded in our Consolidated Statements of Operations. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset group is not recoverable and exceeds fair value. The carrying amount of a long-lived asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset group. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset group exceeds its fair value. Software Development Costs The Company capitalizes the cost of developing internal-use software, consisting primarily of personnel and related expenses (including stock-based compensation and employee taxes and benefits) for employees and third parties who devote time to their respective projects. Internal-use software costs are capitalized during the application development stage – when the research stage is complete and management has committed to a project to develop software that will be used for its intended purpose and any costs incurred during subsequent efforts to significantly upgrade and enhance the functionality of the software are also capitalized. Capitalized software costs are included in property and equipment, net on our Consolidated Balance Sheets. Amortization of internal-use software costs are recorded on a straight-line basis over their estimated useful life and begin once the project is substantially complete and the software is ready for its intended purpose. Research and Development Costs Research and development costs consist primarily of personnel and related expenses (including stock-based compensation) for employees engaged in research and development activities as well as third party fees. All such costs are expensed as incurred. We focus our research and development efforts on activities that support our technology infrastructure, clinical program development, data analytics and network development capabilities. Research and development costs are recorded within “Selling, general and administrative expenses” on our Consolidated Statements of Operations and were $11.1 million , $5.8 million and zero for the years ended December 31, 2016 , 2015 and 2014 , respectively. Goodwill We recognize the excess of the purchase price, plus the fair value of any non-controlling interests in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed at least annually for indications of impairment, with consideration given to financial performance and other relevant factors. We perform impairment tests of goodwill at our single reporting unit level, which is consistent with the way management evaluates our business. Acquisitions to date have been complementary to the Company’s core business, and therefore goodwill is assigned to our single reporting unit to reflect the synergies arising from each business combination. We perform a two-step test in our evaluation of the carrying value of goodwill, if qualitative factors determine it is necessary to complete the two-step goodwill impairment test. In Step 1 of the evaluation, the fair value is determined and compared to the carrying value. If the fair value is greater than the carrying value, then the carrying value is deemed to be recoverable, and Step 2 is not required. If the fair value estimate is less than the carrying value, it is an indicator that impairment may exist, and Step 2 is required. In Step 2, the implied fair value of goodwill is determined. The fair value as determined in Step 1 is assigned to all of its net assets (recognized and unrecognized) as if the entity was acquired in a business combination as of the date of the impairment test. If the implied fair value of goodwill is lower than its carrying amount, goodwill is impaired and written down to its fair value; and a charge is reported in impairment of goodwill on our Consolidated Statements of Operations. See Note 7 for additional discussion regarding the goodwill impairment tests conducted during 2016 and 2015 . Intangible Assets, Net As noted above, on June 4, 2015, the Company completed the Offering Reorganization, following which we were required to remeasure the assets, liabilities and non-controlling interests of our equity-method investee, Evolent Health LLC, at fair value. The Company acquired additional intangible assets in conjunction with strategic acquisitions made during 2016 . Information regarding the determination and allocation of the fair value of the acquired assets and liabilities are further described within Note 4 . Identified intangible assets are recorded at their estimated fair values at the date of acquisition and are amortized over their respective estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are used. The following summarizes the estimated useful lives by asset classification: Corporate trade name 20 years Customer relationships 15-25 years Technology 5-7 years Intangible assets are reviewed for impairment if circumstances indicate the Company may not be able to recover the asset’s carrying value. The Company evaluates recoverability by determining whether the undiscounted cash flows expected to result from the use and eventual disposition of that asset or group exceed the carrying value at the evaluation date. If the undiscounted cash flows are not sufficient to cover the carrying value, the Company measures an impairment loss as the excess of the carrying amount of the long-lived asset or group over its fair value. See Note 7 for additional discussion regarding our intangible assets. Long-term Debt As discussed in Note 8 , the Company issued $125.0 million aggregate principal amount of its 2.00% Convertible Senior Notes due 2021 in a Private Placement in December 2016. The 2021 Notes are carried at cost, net of deferred financing costs, as long-term debt on the Consolidated Balance Sheets. The deferred financing costs will be amortized to non-cash interest expense using the straight line method over the contractual term of the 2021 Notes, since this method was not materially different from the effective interest rate method. Cash interest payments are due semi-annually in arrears - on June 1 and December 1 each year, starting on June 1, 2017. We will accrue interest expense monthly based on the annual coupon rate of 2.00% . The 2021 Notes have embedded conversion options and contingent interest provisions. Leases The Company leases all of its office space and enters into various other operating lease agreements in conducting its business. At the inception of each lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. The operating lease agreements may contain tenant improvement allowances, rent holidays or rent escalation clauses. When such items are included in a lease agreement, the Company records a deferred rent asset or liability on our Consolidated Balance Sheets equal to the difference between the rent expense and future minimum lease payments due. The rent expense related to these items is recognized on a straight-line basis in the Consolidated Statements of Operations over the terms of the leases. In addition, the Company has entered into sublease agreements for some of its leased office space. Total rental income attributable to the subleases is offset against rent expense recorded in the Consolidated Statements of Operations over the terms of the leases. As of December 31, 2016 and 2015 , the Company had not entered into any capital leases. The Company is subject to non-cancellable leases for offices or portions of offices for which use might cease, resulting in a lease abandonment. When a lease abandonment is determined to have occurred, the present value of the future lease payments, net of estimated sublease payments, along with any unamortized tenant improvement costs, are recognized as lease abandonment expense in the Company’s Consolidated Statements of Operations with a corresponding liability in the Company’s Consolidated Balance Sheets. See Note 9 for discussion of the lease abandonment. Impairment of Equity Method Investments The Company considers potential impairment triggers for its equity method investments, and the equity method investments will be written down to fair value if there is evidence of a loss in value which is other-than-temporary. The Company may estimate the fair value of its equity method investments by considering recent investee equity transactions, discounted cash flow analyses and recent operating results. If the fair value of the investment has dropped below the carrying amount, management considers several factors when determining whether other-than-temporary impairment has occurred. The estimation of fair value and whether other-than-temporary impairment has occurred requires the application of significant judgment and future results may vary from current assumptions. There was no such impairment for the years ended December 31, 2016 , 2015 and 2014 . Deferred Revenue Deferred revenue consists of billings or payments received in advance of providing the requisite services or other instances where the revenue recognition criteria have not been met. Amounts deferred that are not anticipated to be recognized as revenue within a year of the balance sheet date are reported as long-term deferred liabilities. Revenue Recognition Revenue from the Company’s services is recognized when there is persuasive evidence of an arrangement, performance or delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured. At times, the Company enters into contracts that contain multiple deliverables and we evaluate each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (i) if the delivered item has value to the customer on a standalone basis, and (ii) if the contract includes a general right of return relative to the delivered item, and delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the vendor. Revenue is then allocated to the units of accounting based on an estimate of each unit’s relative selling price. Revenue Recognition - Transformation Transformation contracts consist of strategic assessments, or blueprint contracts, and implementation contracts. Based on the strategic assessment generated in a blueprint contract, a customer may decide to move forward with a population health or health plan strategy; in these cases, the customer enters into an implementation contract in which the Company provides services related to the launch of this strategy. The Company recognizes revenue associated with transformation contracts based on a proportionate performance method, where revenue is recognized each period in proportion to the amount of the contract completed during that period. Contract completion is measured using output measures as best estimated by labor hours incurred compared to the total estimated labor hours necessary to complete our performance obligations contained in the contract. Revenue Recognition - Platform and Operations After the transformation phase, the Company often enters into a multi-year service contract with its customers where various population health, health plan operations, third-party health plan and PBM services are provided on an ongoing basis to the members of the customers’ plans typically in exchange for a monthly service fee, PMPM fee or a percentage of plan premiums. Revenue from these contracts is recognized in the month in which the services are delivered. In certain arrangements, there is a contingent portion of our service fee including meeting service level targets, sharing in rebates, shared medical savings arrangements based on financial performance and other performance measures. The Company continuously monitors its compliance with these arrangements and recognizes revenue when the amount is estimable and there is evidence to support meeting the criteria. Credits and Discounts We also provide credits and discounts to our customers often based on achieving certain volume commitments or other criteria. Credits are assessed to determine whether they reflect significant and incremental discounts. If the discounts are significant, the Company allocates them between the contract deliverables or future purchases as appropriate. If the future credit expires unused, it is recognized as revenue at that time. Stock-based Compensation The Company sponsors a stock-based incentive plan that provides for the issuance of stock-based awards to employees and non-employee directors of the Company or its consolidated subsidiaries. Our stock-based awards generally vest over a four year period and expire ten years from the date of grant. We expense the fair value of stock-based awards granted under our incentive compensation plans. Fair value of stock options is determined using a Black-Scholes options valuation methodology. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, on a straight-line basis and is recognized as an increase to additional paid-in capital. Stock-based compensation expense is reflected in “Cost of revenue” and “Selling, general and administrative expenses” in our Consolidated Statements of Operations. Additionally we capitalize personnel expenses attributable to the development of internal-use software, which include stock-based compensation costs. We adopted ASU 2016-09 during 2016, which allows us to recognize share-based award forfeitures as they occur rather than applying an estimated forfeiture rate. See “Change in Accounting Principal” below for further discussion of the adoption of ASU 2016-09. Prior to the Offering Reorganization on June 3, 2015, stock-based awards were granted in the stock of the Company to employees of its equity-method investee, Evolent Health LLC. As such, the Company was required to use a “non-employee” model for recognizing stock-based compensation, which required the awards to be marked-to-market through net income at the end of each reporting period until vesting occurred. Subsequent to the Offering Reorganization described in Note 4 , stock-based awards are granted in the Company’s stock to the employees of Evolent Health LLC and compensation costs are therefore recognized using an “employee” model. Under the “employee” model, we no longer mark the awards to market at the end of each reporting period. Income Taxes Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. We use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. We recognize interest and penalties accrued on any unrecognized tax exposures as a component of income tax expense. We did not have any such amounts accrued as of December 31, 2016 and 2015 , and we have not identified any uncertain income tax positions that could have a material impact to the consolidated financial statements. We are subject to taxation in various jurisdictions in the U.S. and remain subject to examination by taxing jurisdictions for the years 2011 and all subsequent periods due to the availability of NOL carryforwards. We are a holding company and our assets consist of our direct ownership in Evolent Health LLC, for which we are the managing member. Evolent Health LLC is classified as a partnership for U.S. federal and applicable state and local income tax purposes and, as such, is not subject to U.S. federal, state and local income taxes. Taxable income or loss generated by Evolent Health LLC is allocated to holders of its units, including us, on a pro rata basis. Accordingly, we are subject to U.S. federal, state and local income taxes with respect to our allocable share of any taxable income of Evolent Health LLC. Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing net income (loss) available to Class A common shareholders by the weighted-average number of Class A common shares outstanding. For periods of net income, and when the effects are not anti-dilutive, we calculate diluted earnings per share by dividing net income available to Class A common shareholders by the weighted average number of Class A common shares assuming the conversion of the convertible preferred securities, which occurred on the date of the Offering Reorganization, plus the weighted average number of Class A common shares assuming the conversion of our 2021 Notes, as well as the impact of all potential dilutive common shares, consisting primarily of common stock options and unvested restricted stock awards using the treasury stock method and our exchangeable Class B common stock. For periods of net loss, shares used in the diluted earnings (loss) per share calculation represent basic shares as using diluted shares would be anti-dilutive. Prior to the Offering Reorganization, the Company issued securities other than common stock that participated in dividends (“participating securities”), and therefore, we utilized the two-class method to calculate earnings (loss) per share for the applicable periods. Participating securities include redeemable convertible preferred stock. The two-class method requires a portion of earnings to be allocated to the participating securities to determine the earnings available to common stockholders. Earnings (loss) available to the common stockholders is equal to net income (loss) less dividends paid on preferred stock, assumed periodic cumulative preferred stock dividends, repurchases of preferred stock for an amount in excess of carrying value and an allocation of any remaining earnings (loss) in accordance with the bylaws between the outstanding common and preferred stock as of the end of each applicable period. Operating Segments Operating segments are defined as components of a business that earn revenue and incur expenses for which discrete financial information is available that is evaluated, on a regular basis, by the chief operating decision maker (“CODM”) to decide how to allocate resources and assess performance. The Company’s CODM, the Chief Executive Officer, allocates resources at a consolidated level and therefore the Company views its operations and manages its business as one operating segment. All of the Company’s revenue is generated in the United States and all assets are located in the United States. Change in Accounting Principle In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company elected to early adopt ASU 2016-09 effective January 1, 2016. ASU 2016-09 requires that certain amendments resulting from the adoption of the new pronouncement be applied using a modified-retrospective transition method by means of a cumulative-effect adjustment to retained earnings as of the beginning of the period in which the guidance is adopted. Thus, the Company decreased beginning retained earnings by approximately $0.5 million on January 1, 2016, for amendments related to an accounting policy election to recognize share-based award forfeitures as they occur rather than applying an estimated forfeiture rate. In addition, the adoption of ASU 2016-09 changed how the Company recognizes excess tax benefits (“windfalls”) or deficiencies (“shortfalls”) related to share-based compensation. Prior to the adoption of ASU 2016-09, these windfalls and shortfalls were credited or charged, respectively, to additional paid-in capital in the Company’s Consolidated Balance Sheets when the amount of cash taxes paid was impacted by the windfalls and shortfalls. Under the revised standard, these windfalls and shortfalls are recognized prospectively as discrete tax benefit or discrete tax expense, respectively, in the Company’s Consolidated Statements of Operations without regard to the impact on cash taxes paid. For the year ended December 31, 2016 , the Company recognized an immaterial discrete tax benefit related to net windfall tax benefits from share-based compensation, which increased the net operating loss (“NOL”) deferred tax asset and our valuation allowance.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards Adoption of New Accounting Standards In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . This standard requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards by requiring an assessment for a period of one year after the date that the financial statements are issued. Further, based on certain conditions and circumstances, additional disclosures may be required. This standard is effective beginning with the first annual period ending after December 15, 2016, and for all annual and interim periods thereafter. The Company adopted ASU 2014-15 during 2016. The adoption did not have a material impact on the Company’s financial statements as management has not identified any conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern for one year after the date the consolidated financial statements were available to be issued. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs . The purpose of the update was to simplify the presentation of debt issuance costs. The amendments in the update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The standard is effective for annual periods beginning after December 15, 2015, and interim periods within those fiscal years. The new guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The Company adopted ASU 2015-03 during 2016. As a result of the adoption, we recorded the $125.0 million Private Placement of the 2021 Notes as a long-term liability, net of deferred offering costs of $4.8 million . The deferred offering costs will be amortized into the principal note balance over the term of the 2021 Notes. Refer to Note 8 for further discussion of the 2021 Notes. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The update simplifies several aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. This standard is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted for any interim or annual period. The Company elected to early adopt this ASU during 2016, as described in Note 2 . Future Adoption of New Accounting Standards In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other - Simplifying the Test for Goodwill Impairment . The purpose of the ASU is to simplify the subsequent measurement of goodwill. The ASU eliminates Step 2 from the goodwill impairment test. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This update is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We anticipate this ASU may have a material impact on our consolidated financial statements if a future goodwill impairment test does not pass the Step 1 evaluation. We intend to early adopt the requirements of this standard for our annual and/or interim goodwill impairment tests for our fiscal year beginning January 1, 2017. In January 2017, the FASB issued ASU 2017-01, Business Combinations - Clarifying the Definition of a Business . The purpose of the ASU is to add guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU provides a screen to determine when an integrated set of assets and activities is not a business. The ASU also provides a framework to assist entities in evaluating whether both an input and a substantive process are present. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments should be applied prospectively on or after the effective date. We intend to adopt the requirements of this standard effective January 1, 2018, and are currently evaluating the impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash . The purpose of the ASU is to reduce diversity in practice regarding the classification and presentation of changes in restricted cash on the statement of cash flows. The amendments in the ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this ASU should be applied using a retrospective transition method to each period presented. We intend to adopt the requirements of this standard effective January 1, 2018, and are currently evaluating the impact of the adoption on our Consolidated Statements of Cash Flows. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments . This ASU provides updated guidance on eight specific cash flow issues to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. We intend to adopt the requirements of this standard effective January 1, 2018, and are currently evaluating the impact of the adoption on our Consolidated Statements of Cash Flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . With respect to assets measured at amortized cost, such as held-to-maturity assets, the update requires presentation of the amortized cost net of a credit loss allowance. The update eliminates the probable initial recognition threshold that was previously required prior to recognizing a credit loss on financial instruments. The credit loss estimate can now reflect an entity’s current estimate of all future expected credit losses as opposed to the previous standard, when an entity only considered past events and current conditions. With respect to available for sale debt securities, the update requires that credit losses be presented as an allowance rather than as a write-down. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We intend to adopt the requirements of this standard effective January 1, 2020 and are currently evaluating the impact of the adoption on our financial condition and results of operations. In February 2016, the FASB issued ASU 2016-02, Leases , in order to establish the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. This update introduces a new standard on accounting for leases, including a lessee model that brings most leases on the balance sheet. The new standard also aligns many of the underlying principles of the new lessor model with those in ASC 606, the FASB’s new revenue recognition standard (e.g., those related to evaluating when profit can be recognized). The standard also requires lessors to increase the transparency of their exposure to changes in value of their residual assets and how they manage that exposure. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. We intend to adopt the requirements of this standard effective January 1, 2019, and are currently evaluating the impact of the adoption on our financial condition and results of operations. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , in order to clarify the principles of recognizing revenue. This standard establishes the core principle of recognizing revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB defines a five-step process that systematically identifies the various components of the revenue recognition process, culminating with the recognition of revenue upon satisfaction of an entity’s performance obligation. By completing all five steps of the process, the core principles of revenue recognition will be achieved. In March 2016, the FASB issued an update to the new revenue standard (ASU 2014-09) in the form of ASU 2016-08, which amended the principal-versus-agent implementation guidance and illustrations in the new revenue guidance. The update clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued another update to the new revenue standard in the form of ASU 2016-10, which amended the guidance on identifying performance obligations and the implementation guidance on licensing. These ASUs were followed by two further updates issued during May 2016, including ASU 2016-11, which rescinds certain SEC guidance, such as the adoption of ASUs 2014-09 and 2014-16, including accounting for consideration given by a vendor to a customer, and ASU 2016-12, which is intended to clarify the objective of the collectability criterion while identifying the contract(s) with a customer. The new revenue standard (including updates) will be effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted only as of annual reporting periods beginning after December 15, 2016. We intend to adopt the requirements of this standard effective January 1, 2018, and while we are evaluating the impact to our financial condition and results of operations, we expect the adoption of this ASU to require the inclusion of additional disclosures surrounding the nature and timing of our revenue. In our efforts to adopt this ASU, we have formulated an implementation team and begun the evaluation process. We have evaluated a number of our contracts and at this point there is no clear indication regarding overall impact to our consolidated financial statements. We intend to complete the process during 2017, and until we have a clear indication of the impact of the adoption of the new standard we will not finalize our implementation method. We have evaluated all other issued and unadopted ASUs and believe the adoption of these standards will not have a material impact on our results of operations, financial position, or cash flows.

Transactions

Transactions	12 Months Ended
	Dec. 31, 2016
Organizational Transactions [Abstract]
Transactions	Transactions Business Combinations Aldera On November 1, 2016 , the Company completed the acquisition of Aldera and acquired 100% of the voting equity interests. Aldera is the primary software provider for the Valence Health TPA platform. The acquisition provides control over a key vendor for Valence Health’s TPA services. The merger consideration, net of certain closing and post-closing adjustments was $34.3 million based on the closing price of the Company’s Class A common stock on the New York Stock Exchange on November 1, 2016 , and consisted of approximately 0.5 million shares of the Company’s Class A common stock, $17.5 million in cash and $7.0 million related to the settlement of a prepaid software license. As a result of the Class A common stock issued for the Aldera transaction, the Company’s ownership of Evolent Health LLC increased from 77.2% to 77.4% due to the Company having been issued Class A membership units in Evolent Health LLC in exchange for the contribution of Aldera to Evolent Health LLC post acquisition. Prior to the acquisition of Aldera, Evolent entered into a perpetual license agreement for development rights and use of Aldera proprietary software for $7.0 million . Upon closing the acquisition of Aldera, the Company concluded that the $7.0 million prepaid asset recorded by Evolent and the deferred revenue balance recorded by Aldera for the perpetual software license should be assessed as a prepayment for a software license that was effectively settled upon acquisition and is eliminated in the post-combination consolidated financial statements. No gain or loss was recognized on settlement as management determined the $7.0 million license fee to be priced at fair value and the license agreement did not include a settlement provision. The Company increased the consideration transferred for the acquisition of Aldera by $7.0 million for the effective settlement of the prepaid software license at the recorded amount, bringing the total consideration paid for the acquisition to $34.3 million . The Company incurred approximately $0.2 million in transaction costs related to the Aldera acquisition, which were recorded within “Selling, general and administrative expenses” on our Consolidated Statements of Operations for the year ended December 31, 2016 . The Company has accounted for the transaction as a business combination using purchase accounting. The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of November 1, 2016 , as follows (in thousands): Purchase consideration: Fair value of Class A common stock issued $ 9,864 Cash for settlement of software license 7,000 Cash 17,481 Total consideration $ 34,345 Tangible assets acquired: Receivables $ 624 Prepaid expenses and other current assets 272 Property and equipment 1,065 Other non-current assets 9 Identifiable intangible assets acquired: Customer relationships 7,000 Technology 2,500 Liabilities assumed: Accounts payable 429 Accrued liabilities 1,204 Accrued compensation and employee benefits 605 Deferred revenue 44 Goodwill 25,157 Net assets acquired $ 34,345 The fair value of the receivables acquired, as shown in the table above, approximates the gross contractual amounts deemed receivable by management. Identifiable intangible assets associated with technology and customer relationships will be amortized on a straight-line basis over their preliminary estimated useful lives of 5 and 15 years, respectively. The technology is related to source code for licensed software used to support the third party administration platform offered to Aldera’s clients. The fair value of the intangible assets was primarily determined using the income approach. The income approach estimates fair value for an asset based on the present value of cash flows projected to be generated by the asset. Projected cash flows are discounted at a required rate of return that reflects the relative risk of achieving the cash flows and the time value of money. Goodwill is calculated as the difference between the acquisition date fair value of the total consideration and the fair value of the net assets acquired, and represents the future economic benefits that we expect to achieve as a result of the acquisition. The goodwill is attributable primarily to the acquired assembled workforce and expected cost and revenue synergies. Goodwill is considered an indefinite lived asset. The transaction was a taxable business combination for the Company and the amount of goodwill determined for tax purposes is deductible upon the beginning of the amortization period for tax purposes. The amounts above reflect management’s preliminary estimate of the fair value of the tangible and intangible assets acquired and liabilities assumed based on a valuation performed using currently available information. Any necessary adjustments will be finalized within one year from the date of acquisition. We have included the financial results of Aldera in our consolidated financial statements from November 1, 2016 . The Consolidated Statements of Operations include $1.2 million of revenues and $1.8 million of net loss attributable to Aldera for the year ended December 31, 2016 . Valence Health On October 3, 2016 , the Company completed its acquisition of Valence Health and acquired 100% of the voting equity interests. Valence Health, based in Chicago, Illinois, was founded in 1996 and provides value-based administration, population health and advisory services. In its 20 year history, Valence Health has developed particular expertise in the Medicaid and pediatric markets. The addition of Valence Health is expected to strengthen the Company’s operational capabilities and provide increased scale and client diversification. The merger consideration, net of certain closing and post-closing adjustments was $217.0 million based on the closing price of the Company’s Class A common stock on the New York Stock Exchange on October 3, 2016 , and consisted of 7.0 million shares of the Company’s Class A common stock and $54.8 million in cash. The final number of shares to be issued is still subject to adjustment, pending a concluded net working capital settlement. The shares issued to Valence Health stockholders represented approximately 10.5% of the Company’s issued and outstanding Class A common stock and Class B common stock immediately following the transaction. As a result of the Class A common stock issued for the Valence Health transaction, the Company’s ownership in Evolent Health LLC increased from 74.6% to 77.2% due to the Company having been issued Class A membership units in Evolent Health LLC in exchange for the contribution of Valence Health to Evolent Health LLC post acquisition. The transaction also included an earn-out of up to $12.4 million , fair valued at $2.6 million as of October 3, 2016 , payable by January 30, 2017, in the Company’s Class A common stock, tied to new business activity contracted on or before December 31, 2016. The fair value was determined by assigning probabilities to potential business activity in the pipeline as of the acquisition date. As of December 31, 2016, Valence Health did not contract sufficient business to be eligible for payment of the earn-out consideration. As a result, the Company recorded a gain of $2.6 million in accordance with the release of the contingent liability for the year ended December 31, 2016 , which is recorded within “(Gain) loss on change in value of contingent consideration” on our Consolidated Statements of Operations. The Company incurred approximately $2.7 million of transaction costs related to the Valence Health acquisition for the year ended December 31, 2016 . Approximately $2.6 million of the transaction costs are recorded within “Selling, general and administrative expenses” and less than $0.1 million are recorded within “Cost of revenue” on our Consolidated Statements of Operations. The Company has accounted for the transaction as a business combination using purchase accounting. The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of October 3, 2016 , as follows (in thousands): Purchase consideration: Fair value of Class A common stock issued $ 159,614 Fair value of contingent consideration 2,620 Cash 54,799 Total consideration $ 217,033 Tangible assets acquired: Restricted cash $ 1,829 Accounts Receivable 8,587 Prepaid expenses and other current assets 3,465 Property and equipment 6,241 Other non-current assets 313 Favorable leases assumed (net of unfavorable leases) 4,323 Identifiable intangible assets acquired: Customer relationships 69,000 Technology 18,000 Liabilities assumed: Accounts payable 5,703 Accrued liabilities 3,865 Accrued compensation and employee benefits 9,200 Deferred revenue 2,022 Other long-term liabilities 2,328 Net deferred tax liabilities 13,316 Goodwill 141,709 Net assets acquired $ 217,033 The fair value of the receivables acquired, as shown in the table above, approximates the gross contractual amounts due under contracts of $9.1 million , of which $0.5 million is expected to be uncollectible. Identifiable intangible assets associated with customer relationships and technology will be amortized on a straight-line basis over their preliminary estimated useful lives of 20 and 5 years, respectively. The customer relationships are primarily attributable to long-term existing contracts with current customers. The technology is an existing platform Valence Health uses to provide services to customers. The fair value of the intangible assets was primarily determined using the income approach. The income approach estimates fair value for an asset based on the present value of cash flows projected to be generated by the asset. Projected cash flows are discounted at a required rate of return that reflects the relative risk of achieving the cash flows and the time value of money. Goodwill is calculated as the difference between the acquisition date fair value of the total consideration and the fair value of the net assets acquired, and represents the future economic benefits that we expect to achieve as a result of the acquisition. The goodwill is attributable primarily to the acquired assembled workforce and expected cost and revenue synergies. Goodwill is considered an indefinite lived asset. The merger was structured as a tax-free reorganization and therefore the Company received carryover basis in the assets and liabilities acquired; accordingly, the Company recognized net deferred tax liabilities associated with the difference between the book basis and the tax basis for the assets and liabilities acquired, as well as the Valence Health net operating loss tax carryforward received in the merger, in the amount of $13.3 million , resulting in additional goodwill. The purchased and additional goodwill created due to the increase in the deferred tax liability were not deductible for tax purposes. The Company contributed the acquired assets and liabilities of Valence Health to Evolent Health LLC, resulting in a taxable gain of $52.7 million for the Company, not recognized for financial reporting purposes. The amounts above reflect management’s preliminary estimate of the fair value of the tangible and intangible assets acquired and liabilities assumed based on a valuation performed using currently available information. Any necessary adjustments will be finalized within one year from the date of acquisition. We have included the financial results of Valence Health in our consolidated financial statements from October 3, 2016 . The Consolidated Statements of Operations include $24.1 million of revenues and $18.1 million of net loss attributable to Valence Health for the year ended December 31, 2016 . In addition, our results for the year ended December 31, 2016 , include approximately $3.9 million in stock compensation expense related to the acceleration of unvested Valence Health equity awards that vested upon the close of the Valence Health acquisition. The expense is related to Valence Health employees that remained with the Company following the close of the acquisition. Our results from operations also include a lease abandonment expense of approximately $6.5 million in conjunction with a rental space acquired as part of the Valence Health acquisition. Immediately following the acquisition, the Company made a decision to abandon and sublet its rented space at 540 W. Madison Street, Suite 1400, Chicago, Illinois (the “14 th Floor Space”). The 14 th Floor Space was completely vacated and is not being used in any manner by Evolent following the date of the merger. Accordingly, the Company believes it effectively ceased using the 14 th Floor Space on October 3, 2016 . As of October 3, 2016 , the total gross value of remaining lease payments was $20.8 million and the gross value of reasonably estimable sublease rentals was $13.5 million . The Company applied a discount rate of 5% , based on its estimated incremental unsecured borrowing rate, resulting in an estimated net present value of the abandonment loss of approximately $6.5 million , the long-term portion of which is recorded within “Other long-term liabilities” and the short-term portion of which is recorded within “Accrued liabilities” on our Consolidated Balance Sheets. The abandonment loss is recorded within “Selling, general and administrative expenses” on our Consolidated Statements of Operations for the year ended December 31, 2016. In conjunction with our acquisition of Valence Health on October 3, 2016, we also signed a Master Service Agreement (the “MSA”), as well as a Transition Service Agreement (the “TSA”) with Cicerone Health, the surviving Valence Health, Inc. state insurance cooperative business not acquired by the Company (“CHS”). The MSA and the TSA are at market rates and, therefore, there is no allocation of purchase price to these arrangements. The terms of the MSA stipulate that the Company will provide service information technology, system configuration and medical management services to CHS’s state insurance cooperative clients until December 31, 2018 . Based on management’s analysis, the terms of the MSA are at fair market value. Under the terms of the TSA, the Company will provide back office information technology support to CHS and CHS will provide back office finance and human resources support to Evolent until December 31, 2017 . Employees of both entities will have mutual employee health care claims administration through a self-funded plan. Based on management’s analysis, the terms of the TSA are at fair market value. Passport On February 1, 2016 , the Company entered into a strategic alliance with Passport, a nonprofit community-based and provider-sponsored health plan administering Kentucky Medicaid and federal Medicare Advantage benefits to approximately 0.3 million Kentucky Medicaid and Medicare Advantage beneficiaries. As part of the transaction, we issued 1.1 million Class A common shares to acquire capabilities and assets from Passport to enable us to build out a Medicaid Center of Excellence based in Louisville, Kentucky. Additional equity consideration of up to $10.0 million may be earned by Passport should we obtain new third party Medicaid businesses in future periods. This transaction also includes a 10 -year arrangement under which we will provide various health plan management and managed care services to Passport. The Company incurred approximately $0.2 million in transaction costs related to the Passport acquisition for the year ended December 31, 2016 . The transaction costs are recorded within “Selling, general and administrative expenses” on our Consolidated Statements of Operations. The Company has accounted for the transactions with Passport as a business combination using purchase accounting. The fair value of the total consideration transferred in connection with the close of the transaction was $18.2 million , of which the Class A common shares were valued at $10.5 million and the contingent equity consideration was initially valued at $7.8 million . The fair value of the shares issued was determined based on the closing price of the Company’s Class A common stock on the NYSE as of February 1, 2016 , and the quantity of shares issued was determined under a pricing collar set forth in the purchase agreement. The contingent consideration of $8.3 million is a mark-to-market liability recorded within “Other long-term liabilities” on our Consolidated Balance Sheets as of December 31, 2016 . We recorded a re-measurement loss of approximately $0.5 million based on a change in the discount rate as of December 31, 2016 . The fair value of the contingent equity consideration was estimated based on the real options approach, a form of the income approach, which estimated the probability of the Company achieving future revenues under the agreement. Key assumptions include the discount rate and the probability-adjusted recurring revenue forecast. A further discussion of the fair value measurement of the contingent consideration is provided in Note 16 . The purchase price was allocated to the assets acquired based on their estimated fair values as of February 1, 2016 , as follows (in thousands): Purchase Consideration Fair value of Class A common stock issued $ 10,450 Fair value of contingent consideration 7,750 Total consideration $ 18,200 Tangible assets acquired Prepaid asset $ 6,900 Goodwill 11,300 Net assets acquired $ 18,200 The prepaid asset is related to an acquired facility license agreement as the Company was provided with leased facilities which house the acquired Passport employees at no future cost to the Company. The fair value of the acquired facility license agreement was determined by comparing the current market value of similar lease spaces to the facilities occupied by the acquired Passport personnel to obtain a market value of the occupied space, with the present value of the determined market value of the occupied space classified as the acquired facility license agreement prepaid asset. The goodwill is attributable partially to the acquired assembled workforce. The transaction was a taxable business combination for the Company and the amount of goodwill determined for tax purposes is deductible upon the beginning of the amortization period for tax purposes. Results for the year ended December 31, 2016 , include revenues and related expenses from our services agreement with Passport and amortization of the acquired intangibles for the period February 1, 2016, through December 31, 2016 . The Consolidated Statements of Operations include $49.8 million of revenues and $6.4 million of net loss attributable to Passport for the year ended December 31, 2016 . The Offering Reorganization Evolent Health, Inc. was incorporated as a Delaware corporation on December 12, 2014, for the purpose of pursuing the Company’s IPO. Immediately prior to the completion of the IPO in June 2015, we amended and restated our certificate of incorporation to, among other things, authorize two classes of common stock, Class A common stock and Class B common stock. Each share of our Class A common stock and Class B common stock entitles its holder to one vote on all matters to be voted on by stockholders, and holders of Class A common stock and holders of Class B common stock vote together as a single class on all matters presented to stockholders for their vote or approval (except as otherwise required by law). Pursuant to the Offering Reorganization: • Evolent Health Holdings merged with and into Evolent Health, Inc. and the surviving corporation of the merger was Evolent Health, Inc.; • An affiliate of TPG merged with and into Evolent Health, Inc. and the surviving corporation of the merger was Evolent Health, Inc.; • Each of the then-existing stockholders of Evolent Health Holdings received four shares of our Class A common stock and the right to certain payments under the TRA in exchange for each share of Class A common stock held in Evolent Health Holdings; • TPG received 2.1 million shares of Class A common stock of Evolent Health, Inc., together with the right to certain payments under the TRA in exchange for 100% of the equity that it held in its affiliate that was merged with Evolent Health, Inc.; and • We issued shares of our Class B common stock and the right to certain payments under the TRA to The Advisory Board, TPG and another investor each of which was a member of Evolent Health LLC prior to the Offering Reorganization. The existing shareholders of Evolent Health Holdings held the same economic and voting interest before and after the merger of Evolent Health Holdings with and into Evolent Health, Inc., which represents a transaction among entities with a high degree of common ownership. As such, the merger is viewed as non-substantive and the consolidated financial statements of Evolent Health, Inc. reflect the historical accounting of Evolent Health Holdings except that the legal capital reflects the capital of Evolent Health, Inc. In addition, in connection with the Offering Reorganization, Evolent Health LLC amended and restated its operating agreement to establish two classes of equity (voting Class A common units and non-voting Class B common units); after the amendment, the pre-reorganization members of Evolent Health LLC (other than Evolent Health, Inc.) hold 100% of the Class B common units and Evolent Health, Inc. holds the Class A voting common units. Evolent Health LLC’s Class B common units can be exchanged (together with a corresponding number of shares of our Class B common stock) for one share of our Class A common stock. As a result of the Offering Reorganization, Evolent Health, Inc. obtained voting control over Evolent Health LLC and therefore consolidated Evolent Health LLC and recognized a gain of $414.1 million upon obtaining control. The gain represents the excess of the fair value of our interest in Evolent Health LLC’s net assets over the carrying value of our equity method investment prior to the Offering Reorganization and is included in gain on consolidation in the Consolidated Statements of Operations. We accounted for obtaining control of Evolent Health LLC as a step acquisition and, accordingly, recognized the fair value of Evolent Health LLC’s assets acquired, liabilities assumed, non-controlling interests recognized and the remeasurement gain recorded on the previously held equity interests. As the acquisition was the result of the Offering Reorganization and not the purchase of additional interest in Evolent Health LLC, there were no assets acquired or liabilities assumed, and there was no purchase price paid as a part of the transaction. The allocation of the value of the transaction (in thousands) is included below: Goodwill $ 608,903 Intangible assets 169,000 Cash and restricted cash 21,930 Other assets 49,239 Remeasurement gain on previously held equity interest (414,133 ) Liabilities and deferred revenue (71,299 ) Non-controlling interests (332,793 ) Carrying value of previously held equity interest (30,847 ) Purchase price $ — The estimated fair value of Evolent Health LLC was determined using a business enterprise valuation approach that discounted Evolent Health LLC’s projected cash flows based on an estimate of its weighted average cost of capital. Evolent Health LLC’s fair value was estimated to be $777.8 million . In addition, we determined the fair value of Evolent Health LLC’s tangible and identifiable intangible assets, deferred revenue and other liabilities, based on various income and market approaches, including the relief from royalty method for trade name and technologies, and the discounted cash flow method for customer relationships, both of which use Level 3 inputs (see Note 16 for discussion of fair value and use of Level 3 inputs). We are amortizing the acquired identifiable intangible assets over their estimated useful lives (see Note 2 for discussion of useful lives for intangible assets). The Offering Reorganization was structured as a tax-free exchange and, therefore, did not result in tax deductible goodwill. Subsequent to the Offering Reorganization, the IPO and secondary offering described below, as of December 31, 2016 , Evolent Health, Inc. owned 77.4% of the economic interests and 100% of the voting rights in Evolent Health LLC. Our operations will continue to be conducted through Evolent Health LLC and subsequent to the Offering Reorganization the financial results of Evolent Health LLC are consolidated in the financial statements of Evolent Health, Inc. Evolent Health, Inc. is a holding company whose principal asset is all of the Class A common units it holds in Evolent Health LLC, and its only business is to act as sole managing member of Evolent Health LLC. Evolent Health LLC Governance The Company serves as sole managing member of Evolent Health LLC. As such, it controls Evolent Health LLC’s business and affairs and is responsible for the management of its business. Coordination of Evolent Health, Inc. and Evolent Health LLC We must, at all times, maintain a one -to-one ratio between the number of outstanding shares of our Class A common stock and the number of outstanding Class A common units of Evolent Health LLC. Issuances of Common Units Evolent Health LLC may only issue Class A common units to us, as the sole managing member of Evolent Health LLC. Class B common units may be issued only to persons or entities we permit. Such issuances of Class B common units shall be made in exchange for cash or other consideration. Class B common units may not be transferred as Class B common units except to certain permitted transferees and in accordance with the restrictions on transfer set forth in the third amended and restated operating agreement of Evolent Health LLC. Any such transfer must be accompanied by the transfer of an equal number of shares of our Class B common stock. We entered into an exchange agreement with Evolent Health LLC, The Advisory Board, TPG and another investor. Pursuant to and subject to the terms of the exchange agreement and the third amended and restated operating agreement of Evolent Health LLC, holders of Class B common units, at any time and from time to time, may exchange one or more Class B common units, together with an equal number of shares of our Class B common stock, for shares of our Class A common stock on a one-for-one basis. The amount of Class A common stock issued or conveyed will be subject to equitable adjustments for stock splits, stock dividends and reclassifications. As holders exchange their Class B common units and Class B common stock for Class A common stock, our interest in Evolent Health LLC will increase. Pro forma financial information (unaudited) The unaudited pro forma Consolidated Statements of Operations presented below gives effect to (1) the Aldera transaction as if it had occurred on January 1, 2015, (2) the Valence Health transaction as if it had occurred on January 1, 2015, (3) the Passport transaction as if it had occurred on January 1, 2015, and (4) the consolidation of Evolent Health LLC as if it had occurred on January 1, 2014. The following pro forma information includes adjustments to: • Remove transaction costs related to the Aldera, Valence and Passport transactions of $0.2 million , $2.7 million and $0.3 million , respectively, recorded during 2016 and reclassify said amounts to 2015; • Remove one-time items, such as the gain on the release of our contingent liability related to Valence Health of $2.6 million , stock based compensation of $3.9 million related to the acceleration of Valence Health’s unvested equity awards and the lease abandonment charge related to the 14 th Floor Space of $6.5 million , recorded during 2016 and reclassify said amounts to 2015; • Record amortization expenses related to intangible assets beginning January 1, 2015, for intangibles related to Valence Health and Aldera; • Record revenue and expenses related to the MSA and TSA in 2016 and 2015; • Remove the tax benefit recorded associated with the Valence Health acquisition and reclassify said amounts to 2015; • Remove the gain recognized upon the consolidation of the previously held equity method investment in 2015 and reclassify said amount to 2014; • Remove transaction costs related to the Offering Reorganization of $1.2 million in 2015 and reclassify said amount to 2014; • Record amortization expenses related to intangible assets beginning January 1, 2014, for intangibles related to the Offering Reorganization; • Record rent expense related to Passport prepaid lease beginning January 1, 2015; and • Record adjustments of income taxes associated with these pro forma adjustments. This pro forma data is presented for informational purposes only and does not purport to be indicative of the results of future operations or of the results that would have occurred had the transactions described above occurred in the specified prior periods. The pro forma adjustments were based on available information and assumptions that the Company believes are reasonable to reflect the impact of these transactions on the Company’s historical financial information on a pro forma basis (in thousands, except per share data). For the Years Ended December 31, 2016 2015 2014 Revenue $ 361,944 $ 311,639 $ 95,888 Net income (loss) (225,091 ) (93,906 ) 307,162 Net income (loss) attributable to non-controlling interests (57,433 ) (28,684 ) (29,470 ) Net income (loss) attributable to Evolent Health, Inc. (167,658 ) (65,222 ) 336,632 Net income (loss) available to common shareholders: Basic $ (3.30 ) $ (1.50 ) $ 13.33 Diluted (3.30 ) (1.50 ) 6.73 Associated with the Offering Reorganization, deferred revenue was recorded only to the extent that it represented an obligation assumed by the acquirer. As a result, existing deferred revenue was reduced by $4.9 million to account for the deferred revenue at fair value. Within the pro formas, the 2015 revenue has been increased by $4.8 million to reflect the reversal of this fair value adjustment. 2016 Secondary Offering In September 2016, the Company completed a secondary offering of 8.6 million shares of its Class A common stock at a public offering price of $22.50 per share. The shares sold in the offering were sold by certain affiliates of TPG, The Advisory Board, UPMC, Ptolemy Capital, LLC and certain management selling stockholders. The Company did not receive any proceeds from the sale of the shares. The shares sold in the offering consisted of 6.4 million existing shares of the Company’s Class A common stock owned and held by the Selling Stockholders and 2.2 million newly-issued shares of the Company’s Class A common stock received by certain Investor Stockholders pursuant to the exercise of an existing exchange right. The newly-issued shares of the Company’s Class A common stock were issued to certain Investor Stockholders in exchange for an equal number of shares of the Company’s Class B common stock (which were subsequently canceled) and an equal number of Evolent Health LLC’s Class B common units. Class B units received by the Company from relevant Investor Stockholders were simultaneously exchanged for an equivalent number of Class A units of Evolent Health LLC, and Evolent Health LLC canceled the Class B units it received in the Exchange. As a result of the Exchange and Evolent Health LLC’s cancellation of the Class B units, the Company’s economic interest in Evolent Health LLC increased from 71.0% to 74.6% immediately following the Exchange and, accordingly, we reclassified a portion of our non-controlling interests into shareholders’ equity attributable to Evolent Health, Inc. The Company’s economic interest in Evolent Health LLC will increase if further exchanges occur. Subsequent to the Offering Reorganization, secondary offering and business combinations described above, we owned 77.4% and 70.3% of the economic interests and 100% of the voting rights in Evolent Health LLC as of December 31, 2016 and 2015 , respectively. Asset Acquisition Vestica On March 1, 2016, the Company entered into an Asset Purchase Agreement between Vestica and Evolent Health LLC. As part of the transaction, the Company paid $7.5 million to acquire certain assets from Vestica to further align our interests with one of our existing partners. Vestica can earn an additional $4.0 million in consideration, which is being held in escrow, based on certain future events. This transaction also includes an arrangement under which Vestica will continue to perform certain services on our beha

Investments

Investments	12 Months Ended
	Dec. 31, 2016
Investments [Abstract]
Investments	Investments Our investments are classified as held-to-maturity as we have both the intent and ability to hold the investments until their individual maturities. The amortized cost, gross unrealized gains and losses, and fair value of our investments as measured using Level 2 inputs (in thousands) were as follows: As of December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Costs Gains Losses Value U.S. Treasury bills $ 28,119 $ 116 $ 27 $ 28,208 Corporate bonds 16,222 81 8 16,295 Total investments $ 44,341 $ 197 $ 35 $ 44,503 As of December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Costs Gains Losses Value U.S. Treasury bills $ 28,306 $ 115 $ 181 $ 28,240 Corporate bonds 25,757 110 80 25,787 Total investments $ 54,063 $ 225 $ 261 $ 54,027 The amortized cost and fair value of our investments by contractual maturities (in thousands) were as follows: As of December 31, 2016 As of December 31, 2015 Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 44,341 $ 44,503 $ 9,445 $ 9,451 Due after one year through five years — — 44,618 44,576 Total $ 44,341 $ 44,503 $ 54,063 $ 54,027 The following table summarizes our held-to-maturity securities in an unrealized loss position as of the periods noted below. These securities are aggregated by major security type and length of time that the individual securities have been in a continuous unrealized loss position (in thousands, except number of securities): As of December 31, 2016 As of December 31, 2015 Number of Fair Unrealized Number of Fair Unrealized Securities Value Losses Securities Value Losses Unrealized loss for less than twelve months: U.S. Treasury bills 1 $ 4,002 $ 1 7 $ 28,240 $ 181 Corporate Bonds — — — 14 21,674 80 Total 1 $ 4,002 $ 1 21 $ 49,914 $ 261 We did not hold any securities in a continuous unrealized loss position for twelve months or longer as of December 31, 2016 or 2015 , respectively. When a held-to-maturity investment is in an unrealized loss position, we assess whether or not we expect to recover the entire cost basis of security, based on our best estimate of the present value of cash flows expected to be collected from the debt security. Factors considered in our analysis include the reasons for the unrealized loss position, the severity and duration of the unrealized loss position, credit worthiness and forecasted performance of the investee. In cases where the estimated present value of future cash flows is less than our cost basis, we recognize an other than temporary impairment and write the investment down to its fair value. The new cost basis would not be changed for subsequent recoveries in fair value. While some of the securities held in the investment portfolio have decreased in value since the date of acquisition, the severity of loss and the duration of the loss position are not significant for the years ended December 31, 2016 or 2015 . The Company does not intend, nor does the Company believe that it is likely, that the Company will be required to sell these securities before the recovery of the cost basis.

Property and Equipment, Net

Property and Equipment, Net	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net The following summarizes our property and equipment (in thousands): As of December 31, 2016 2015 Computer hardware $ 4,474 $ 232 Furniture and equipment 2,448 1,604 Internal-use software development costs 21,385 6,363 Leasehold improvements 8,108 5,830 Total property and equipment 36,415 14,029 Accumulated depreciation and amortization expenses (5,236 ) (1,233 ) Total property and equipment, net $ 31,179 $ 12,796 We had no property and equipment prior to the Offering Reorganization. The Company capitalized $15.0 million , $6.4 million and zero of these internal-use software development costs for the years ended December 31, 2016 , 2015 and 2014 , respectively. The net book value of capitalized internal-use software development costs was $19.9 million and $6.3 million as of December 31, 2016 and 2015 , respectively. Depreciation expense related to property and equipment was $2.6 million , $1.2 million and zero for the years ended December 31, 2016 , 2015 (subsequent to the date of the Offering Reorganization) and 2014 , respectively, of which amortization expense related to capitalized internal-use software development costs was $1.4 million , less than $0.1 million and zero for the years ended December 31, 2016 , 2015 (subsequent to the date of the Offering Reorganization) and 2014 , respectively.

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net Goodwill Goodwill has an estimated indefinite life and is not amortized; rather it is reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. In interim periods between annual goodwill reviews, we also evaluate qualitative factors that could cause us to believe our estimated fair value of our single reporting unit may be lower than the carrying value and trigger a Step 1 test including, but not limited to (i) macroeconomic conditions, (ii) industry and market considerations, (iii) our overall financial performance including an analysis of our current and projected cash flows, revenue and earnings, (iv) a sustained decrease in share price and (v) other relevant entity-specific events including changes in strategy, partners, or litigation. As a result of the Offering Reorganization described in Note 4 , we revalued our Consolidated Balance Sheets to the market value of our IPO share price of $17.00 and recorded $608.9 million in goodwill on our Consolidated Balance Sheets. Subsequent to our 2015 annual impairment testing in the fourth quarter of 2015, our common stock price declined significantly, reaching our historic low in the first quarter of 2016. During the three months ended March 31, 2016, our common stock traded between $8.48 and $12.32 , or an average common stock price of $10.33 compared to an average common stock price of $19.51 and $14.73 during the three month periods ended September 30, 2015, and December 31, 2015, respectively. A sustained decline in our common stock price and the resulting impact on our market capitalization is one of several qualitative factors we consider each quarter when evaluating whether events or changes in circumstances indicate it is more likely than not that a potential goodwill impairment exists. We concluded that the further decline in common stock price observed during the first quarter of 2016 did represent a sustained decline and that triggering events occurred during the period requiring an interim goodwill impairment test as of March 31, 2016. As such, we performed a Step 1 impairment test of our goodwill as of March 31, 2016. Step 1 Results To determine the implied fair value for our single reporting unit, we used both a market multiple valuation approach (“market approach”) and a discounted cash flow valuation approach (“income approach”). In determining the estimated fair value, we considered the level of our Class A common stock price and assumptions that we believed market participants would make in valuing our reporting unit, including a control premium, as well as discounted cash flow calculations of management’s estimates of future financial performance and management’s long-term plans. This analysis also required us to make judgments about revenues, expenses, fixed asset and working capital requirements, the timing of exchanges of our Class B common shares, capital market assumptions and discount rates. In our March 31, 2016, Step 1 test, our most sensitive assumption for purposes of the market approach was our estimate of the control premium, and the most sensitive assumption related to the income approach, other than our cash flows, was the discount rate. As of March 31, 2016, our single reporting unit failed the Step 1 analysis as we determined that its implied fair value was less than its carrying value based on the weighting of the fair values determined under both the market and income approaches. As fair value was less than carrying value, we performed a Step 2 test to determine the implied fair value of our goodwill. Step 2 Results In our March 31, 2016, Step 2 test, the fair value of all assets and liabilities were estimated, including our tangible assets (corporate trade name, customer relationships and technology), for the purpose of deriving an estimate of the implied fair value of goodwill. The implied fair value of goodwill was then compared to the carrying amount of goodwill resulting in an impairment charge of $160.6 million on our Consolidated Statements of Operations. The impairment was driven primarily by the sustained decline in our share price as our estimates of our future cash flows and the control premium have remained consistent, combined with an increase in the discount rate period over period. As noted above, our determination of fair value used a weighting of the fair values determined under both the market and income approaches, with the market approach driving the significant reduction in overall firm value and related impairment of goodwill. On October 31, 2016 , we performed our annual impairment test in accordance with our policy as stated above. Our qualitative assessment did not identify sufficient indicators of impairment to require a Step 1 evaluation. The following table summarizes the changes in the carrying amount of goodwill (in thousands): For the Years Ended December 31, 2016 2015 Balance as of beginning-of-year $ 608,903 $ — Goodwill Acquired (1) 178,266 608,903 Goodwill Impairment (current and cumulative) (160,600 ) — Balance as of end-of-year $ 626,569 $ 608,903 (1) Represents goodwill acquired as a result of the Offering Reorganization for the year ended December 31, 2015, and as a result of the Passport, Valence Health and Aldera transactions for the year ended December 31, 2016, as discussed further in Note 4 . Intangible Assets, Net As part of the Offering Reorganization described in Note 4 , intangible assets of $169.0 million were recorded on our Consolidated Balance Sheets. We recorded additional intangible assets of $108.3 million related to our acquisitions in 2016, as discussed further in Note 4 . Details of our intangible assets (in thousands), including their weighted-average remaining useful lives (in years), are presented below: As of December 31, 2016 Weighted- Average Gross Net Remaining Carrying Accumulated Carrying Useful Life Amount Amortization Value Corporate trade name 18.4 $ 19,000 $ 1,505 $ 17,495 Customer relationships 21.5 203,500 9,018 194,482 Technology 5.2 50,500 7,753 42,747 Below market lease, net 9.4 4,323 124 4,199 Total $ 277,323 $ 18,400 $ 258,923 As of December 31, 2015 Weighted- Average Gross Net Remaining Carrying Accumulated Carrying Useful Life Amount Amortization Value Corporate trade name 19.4 $ 19,000 $ 554 $ 18,446 Customer relationships 24.4 120,000 2,797 117,203 Technology 6.4 30,000 2,497 27,503 Total $ 169,000 $ 5,848 $ 163,152 Amortization expense related to intangible assets for the years ended December 31, 2016 , 2015 and 2014 , was $12.5 million , $5.8 million and zero , respectively. Future estimated amortization of intangible assets (in thousands) as of December 31, 2016 , is as follows: 2017 $ 19,027 2018 18,971 2019 19,065 2020 19,052 2021 18,086 Thereafter 164,722 Total $ 258,923 Intangible assets are reviewed for impairment if circumstances indicate the Company may not be able to recover the asset’s carrying value. As discussed above, during the first quarter of 2016, our single reporting unit failed the Step 1 test for goodwill impairment, thus triggering an impairment analysis of the carrying value our intangible asset group. In conjunction with the impairment testing of the carrying value of our goodwill, we performed an analysis to determine whether the carrying amount of our intangible asset group was recoverable. We performed a Step 1 test, which required management to compare the total undiscounted future cash flows of the intangible asset group to the current carrying amount. The total undiscounted cash flows included only the future cash flows that are directly associated with and that were expected to arise as a result of the use and eventual disposal of the asset group. Based on our Step 1 test, we concluded the carrying amount of our long-lived assets were recoverable given the pre-tax, undiscounted cash flows exceed the carrying value of the asset group.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies UPMC Reseller Agreement The Company and UPMC are parties to a reseller, services and non-competition agreement, dated August 31, 2011, which was amended and restated by the parties on June 27, 2013 (as amended through the date hereof, the “UPMC Reseller Agreement”). Under the terms of the UPMC Reseller Agreement, UPMC has appointed the Company as a non-exclusive reseller of certain services, subject to certain conditions and limitations specified in the UPMC Reseller Agreement. In consideration for the Company’s obligations under the UPMC Reseller Agreement and subject to certain conditions described therein, UPMC has agreed not to sell certain products and services directly to the Company’s customers and top prospects. The Advisory Board Company Reseller Agreement The Company and The Advisory Board are parties to a services, reseller, and non-competition agreement, dated August 31, 2011, which was amended and restated by the parties on June 27, 2013, and May 1, 2015 (as so amended, “The Advisory Board Company Reseller Agreement”). Under the terms of The Advisory Board Company Reseller Agreement, The Advisory Board provides certain services to the Company on an as-requested basis. In addition, The Advisory Board has a right of first offer to provide certain specified services during the term of the Agreement and has the right to collect certain fees for specified referrals. Pursuant to the Advisory Board Company Reseller Agreement, Evolent entered into a services agreement with The Advisory Board in October 2016 whereby The Advisory Board will provide certain services to the Company in conjunction with risk adjustment services provided to one of our customers. Contingencies Tax Receivables Agreement In connection with the Offering Reorganization, the Company entered into the TRA with certain of its investors, which provides for the payment by the Company to these investors of 85% of the amount of the tax benefits, if any, that the Company is deemed to realize as a result of increases in our tax basis related to exchanges of Class B common units as well as tax benefits attributable to the future utilization of pre-IPO NOLs. These payment obligations are obligations of the Company. For purposes of the TRA, the benefit deemed realized by the Company will be computed by comparing its actual income tax liability to the amount of such taxes that the Company would have been required to pay had there been no increase to the tax basis of the assets of the Company as a result of the exchanges or had the Company had no NOL carryforward balance. The actual amount and timing of any payments under the TRA will vary depending upon a number of factors, including: • The timing of the exchanges and the price of the Class A shares at the time of the transaction, triggering a tax basis increase in the Company’s asset and a corresponding benefit to be realized under the TRA; and • The amount and timing of our taxable income - the Company will be required to pay 85% of the tax savings as and when realized, if any. If the Company does not have taxable income, it will not be required to make payments under the TRA for that taxable year because no tax savings were actually realized. Due to the items noted above, and the fact that the Company is in a full valuation allowance position such that the deferred tax assets related to the Company’s historical pre-IPO losses and tax basis increase benefit from exchanges have not been realized, the Company has not recorded a liability pursuant to the TRA. Litigation Matters We are engaged from time to time in certain legal disputes arising in the ordinary course of business, including employment claims. When the likelihood of a loss contingency becomes probable and the amount of the loss can be reasonably estimated, we accrue a liability for the loss contingency. In connection with the Valence Health acquisition, the Company acquired certain in-process litigation. However, the Company is fully indemnified by the Valence Health sellers and therefore has no potential exposure. We continue to review accruals and adjust them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel, and other relevant information. To the extent new information is obtained, and our views on the probable outcomes of claims, suits, assessments, investigations, or legal proceedings change, changes in our accrued liabilities would be recorded in the period in which such determination is made. The Company is not aware of any legal proceedings or claims as of December 31, 2016 and 2015 , that the Company believes will have, individually or in the aggregate, a material adverse effect on the Company’s financial position or result of operations. Commitments Lease Commitments The Company has entered into lease agreements for its office locations in Arlington, Virginia, Chicago, Illinois, Lisle, Illinois and San Francisco, California. In addition, certain leases acquired as part of the Valence Health transaction included existing sublease agreements for office locations in Chicago, Illinois. Total rental expense, net of sublease income, on operating leases for the years ended December 31, 2016 , 2015 and 2014 , was $5.9 million , $2.3 million and zero , respectively. In connection with various lease agreements, the Company is required to maintain $4.9 million in letter of credits. As of December 31, 2016 , the Company held $4.9 million in restricted cash and restricted investments as collateral for the letters of credit. Arlington, Virginia Office Lease During 2013, the Company entered into a facility lease in Arlington, Virginia. Total future minimum lease commitments over four years are $13.8 million as of December 31, 2016 . The future minimum lease payments associated with the Arlington, Virginia lease are included in the table below. In conjunction with this lease, the Company is required to maintain a letter of credit in the amount of $1.6 million . The collateral for the letter of credit is currently recorded as restricted cash. Lisle, Illinois Office Lease On November 1, 2016 , the Company assumed a facility lease in Lisle, Illinois as part of the Aldera transaction. Total future minimum lease commitments over 8.5 years are approximately $4.0 million as of December 31, 2016 . The future minimum lease payments associated with the Lisle, Illinois lease are included in the table below. In conjunction with this lease, the Company is required to maintain a letter of credit in the amount of $0.5 million . The collateral for the letter of credit is currently recorded as restricted cash. Chicago, Illinois Office Lease On October 3, 2016 , the Company assumed a facility lease in Chicago, Illinois as part of the Valence Health transaction. This lease includes three floors. One of the floors is occupied by the Company, one is subleased to a tenant, and one was abandoned. Total future minimum lease commitments over 11 years are approximately $30.2 million as of December 31, 2016 . The future minimum lease payments associated with the Chicago, Illinois lease are included in the table below. In conjunction with this lease, the Company is required to maintain a letter of credit in the amount of $1.5 million . The collateral for the letter of credit is currently recorded as restricted cash. In connection with the Chicago, Illinois lease, the Company acquired a sublease tenant for one of the floors (“13 th Floor Sublease”). Total future sublease income over 11 years is approximately $10.1 million as of December 31, 2016 . The future minimum sublease income attributable to the 13 th Floor Sublease is included in the table below. Also in connection with the Chicago, Illinois lease agreement, the Company made a decision to abandon and sublet one of the floors in its rented space. The space was acquired as part of the Valence Health acquisition and has a remaining lease term of 11 years as of December 31, 2016 . The 14 th Floor Space has been completely vacated and is not being used in any manner by Evolent following the date of the merger. Accordingly, the Company believes it effectively ceased using the 14 th Floor Space on October 3, 2016 . As of October 3, 2016 , the total gross value of remaining lease payments was $20.8 million and the gross value of reasonably estimable sublease rentals was $13.5 million . The gross estimated sublease value was determined with a real estate broker and reflects an appropriate market risk premium. Accordingly, the discount rate used in the present value calculation takes into account only the time value of money. The Company applied a discount rate of 5% , based on its estimated incremental unsecured borrowing rate, resulting in an estimated net present value of the abandonment loss of approximately $6.5 million , the long-term portion of which is recorded within “Other long-term liabilities” and the short-term portion of which is recorded within “Accrued liabilities” on our Consolidated Balance Sheets. The unsecured borrowing rate is based on the Company’s convertible debt rate of 2% with a premium added to reflect an unsecured borrowing rate. The abandonment loss is recorded within “Selling, general and administrative expenses” on our Consolidated Statements of Operations. The following table presents a roll forward of the lease abandonment liability for the year ended December 31, 2016 : Accrual at December 31, 2015 $ — Abandonment expense 6,460 Abandonment amortization (360 ) Accrual at December 31, 2016 $ 6,100 Future minimum rental commitments (in thousands) as of December 31, 2016 , were as follows (including the gross lease payments related to the 14 th Floor Space): 2017 $ 8,883 2018 8,694 2019 7,014 2020 6,964 2021 2,851 Thereafter 22,379 Total $ 56,785 Future minimum sublease payments receivable (in thousands) as of December 31, 2016 , were as follows: 2017 $ 1,754 2018 1,501 2019 815 2020 809 2021 556 Thereafter 6,551 Total $ 11,986 Purchase Obligations Our contractual obligations related to vendor contracts (in thousands) as of December 31, 2016 , were as follows: Less More Than 1 to 3 3 to 5 Than 1 Year Years Years 5 Years Total Purchase obligations related to vendor contracts $ 2,276 $ 393 $ — $ — $ 2,669 Indemnifications The Company’s customer agreements generally include a provision by which the Company agrees to defend its partners against third party claims (a) for death, bodily injury, or damage to personal property caused by Company negligence or willful misconduct, (b) by former or current Company employees arising from such managed service agreements, (c) for intellectual property infringement under specified conditions and (d) for Company violation of applicable laws, and to indemnify them against any damages and costs awarded in connection with such claims. To date, the Company has not incurred any material costs as a result of such indemnities and has not accrued any liabilities related to such obligations in the accompanying consolidated financial statements. Registration rights agreement We entered into a registration rights agreement with The Advisory Board, UPMC, TPG and another investor to register for sale under the Securities Act, shares of our Class A common stock, including those delivered in exchange for Class B common stock and Class B common units. Subject to certain conditions and limitations, this agreement provides these investors with certain demand, piggyback and shelf registration rights. The registration rights granted under the registration rights agreement will terminate upon the date the holders of shares that are a party thereto no longer hold any such shares that are entitled to registration rights. Pursuant to our contractual obligations under this agreement, we filed a registration statement on Form S-3 with the SEC on July 28, 2016, which was declared effective on August 12, 2016. Pursuant to certain terms of the registration rights agreement, the Investor Stockholders sold 8.6 million shares of the Company’s Class A common stock in a secondary offering in September 2016. See Note 1 for further discussion of our secondary offering. Pursuant to the terms of the registration rights agreement, we paid $1.6 million in expenses related to the secondary offering during the year ended December 31, 2016 . These expenses are recorded within “Selling, general and administrative expenses” on our Consolidated Statements of Operations. We will continue to pay all expenses relating to any demand, piggyback or shelf registration, other than underwriting discounts and commissions and any transfer taxes, subject to specified conditions and limitations. The registration rights agreement includes customary indemnification provisions, including indemnification of the participating holders of shares of Class A common stock and their directors, officers and employees by us for any losses, claims, damages or liabilities in respect thereof and expenses to which such holders may become subject under the Securities Act, state law or otherwise. Guarantees As part of our strategy to support certain of our partners in the Next Generation Accountable Care Program (“Next Gen”), we entered into upside and downside risk sharing arrangements. Our downside risk-sharing arrangements are limited to our fees and are executed through our wholly-owned captive insurance company. To satisfy the capital requirements of our insurance entity as well as state insurance regulators, Evolent entered into letters of credit of $5.0 million to secure potential losses related to insurance services. This amount is in excess of our actuarial assessment of loss. Credit and Concentration Risk The Company is subject to significant concentrations of credit risk related to cash and cash equivalents, investments and accounts receivable. As of December 31, 2016 , materially all of our $134.6 million of cash and cash equivalents are held in bank deposits with FDIC participating banks. While the Company maintains its cash and cash equivalents and investments with financial institutions with high credit ratings, it often maintains these deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses on cash and cash equivalents or investments to date. The following table summarizes those partners who represented at least 10% of our revenue for the periods presented: For the Years Ended December 31, 2016 2015 Customer A 19.6 % * Customer B 14.5 % 15.6 % Customer C 12.7 % 11.2 % Customer D * 19.6 % Customer E * 14.1 % Customer F * 11.8 % * Represents less than 10.0% of the respective balance There was no revenue for the year ended December 31, 2014 as Evolent Health, Inc.’s results for 2014 reflect only the investment of Evolent Health, Inc.’s predecessor in its equity method investee, Evolent Health LLC. The following table summarizes those partners who represented at least 10% of our trade accounts receivable for the periods presented: As of December 31, 2016 2015 Customer B * 12.9 % Customer D * 23.2 % Customer F * 28.1 % Customer G * 11.4 % Customer H 14.3 % * * Represents less than 10.0% of the respective balance At times our contracts may be amended to change the nature and price of the services and/or the time period over which they are provided. For example, in 2015, we signed two amendments to our agreement with Piedmont WellStar Health Plan, noted as customer D above, that reduced our expected revenue under that contract in 2016. In connection with the amendments, the customer also sold its 2.2% ownership interest in us to certain of our pre-IPO investors, consisting of TPG, The Advisory Board and UPMC. During the fourth quarter of 2015, we agreed to amend the terms of our contract with WakeMed Health and Hospitals, noted as customer E above, and changed our fee structure from a PMPM-based fee to a combination of a fixed-fee and a performance-based fee. The performance-based portion of our fee was tied to Wake Med’s participation in the Next Generation ACO Program. In 2016 Wake Med determined not to participate in the calendar year 2016 program; therefore the portion of our fee and the corresponding expenses related to the performance-based arrangement were eliminated from our agreement.

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Earnings (Loss) Per Common Share	Earnings (Loss) Per Common Share The following table sets forth the computation of basic and diluted earnings per share available for common stockholders (in thousands, except per share data): For the Years Ended December 31, 2016 2015 2014 Net income (loss) $ (226,778 ) $ 319,814 $ (25,246 ) Less: Net income (loss) attributable to non-controlling interests (67,036 ) (12,680 ) — Undeclared cumulative preferred dividends — 2,184 5,141 Redemption of preferred stock at amount in excess of carrying value — — 750 Net income (loss) available for common shareholders - Basic (159,742 ) 330,310 (31,137 ) Add: Net income (loss) attributable to non-controlling interests — (12,680 ) — Undeclared cumulative preferred dividends converted during the period — 2,184 — Net income (loss) available for common shareholders - Diluted (1)(2) $ (159,742 ) $ 319,814 $ (31,137 ) Weighted-average common shares outstanding - Basic 45,031 25,129 2,314 Dilutive effect of restricted stock and restricted stock units — 17 — Dilutive effect of options — 1,510 — Assumed conversion of convertible preferred stock at beginning-of-period — 9,397 — Assumed conversion of Class B common shares to Class A common shares — 10,083 — Weighted-average common shares outstanding - Diluted (2)(3) 45,031 46,136 2,314 Earnings (Loss) per Common Share Basic $ (3.55 ) $ 13.14 $ (13.46 ) Diluted (3.55 ) 6.93 (13.46 ) (1) For periods of net loss, net income (loss) available for common shareholders is the same for both basic and diluted purposes. (2) Each Class B common unit of Evolent Health LLC can be exchanged (together with a corresponding number of shares of our Class B common stock) for one share of our Class A common stock. As holders exchange their Class B common shares for Class A common shares, our interest in Evolent Health LLC will increase. Therefore, shares of our Class B common stock are not considered dilutive shares for the purposes of calculating our diluted earnings (loss) per common share as related adjustment to net income (loss) available for common shareholders would equally offset the additional shares, resulting in the same earnings (loss) per common share. (3) For periods of net loss, shares used in the earnings (loss) per common share calculation represent basic shares as using diluted shares would be anti-dilutive. Anti-dilutive shares (in thousands) excluded from the calculation of weighted-average common shares presented above are presented below: For the Years Ended December 31, 2016 2015 2014 Exchangeable Class B common stock 16,882 — — Convertible preferred stock — — 22,222 Restricted stock and RSUs 245 — 792 Stock options 1,973 — — Convertible senior notes 369 — — Total 19,469 — 23,014

Stock-based Compensation

Stock-based Compensation	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock-based Compensation 2011 and 2015 Equity Incentive Plans The Company issues awards, including stock options, performance-based stock options, restricted stock and RSUs, under the Evolent Health Holdings, Inc. 2011 Equity Incentive Plan (the “2011 Plan”) and the 2015 Evolent Health, Inc. Omnibus Incentive Compensation Plan (the “2015 Plan”). We assumed the 2011 Plan in connection with the merger of Evolent Health Holdings with and into Evolent Health, Inc. The 2011 Plan allows for the grant of an array of equity-based and cash incentive awards to our directors, employees and other service providers. The 2011 Plan was amended on September 23, 2013, to increase the number of shares authorized to 9.1 million shares of the Company’s common stock. As of December 31, 2016 and 2015 , 4.9 million and 5.1 million stock options, respectively, and 3.8 million shares of restricted stock have been issued, net of forfeitures, under the 2011 Plan. On May 1, 2015, the Board of Directors approved and authorized the 2015 Plan which provides for the issuance of up to 6.0 million shares of the Company’s Class A common stock to employees and non-employee directors of the Company and its consolidated subsidiaries. As of December 31, 2016 and 2015 , 1.7 million and 0.7 million stock options and 0.7 million and 0.3 million RSUs have been issued, net of forfeitures, under the 2015 Plan. We follow an employee model for our stock-based compensation as awards are granted in the stock of the Company to employees and non-employee directors of the Company or its consolidated subsidiaries. Prior to the Offering Reorganization, stock-based awards were granted in the stock of the Company to employees of the equity method investee, Evolent Health, LLC. As the employees of Evolent Health LLC were not providing service to the Company, we did not record stock-based compensation during that period; however, under Evolent Health LLC’s Amended and Restated Operating Agreement, Evolent Health LLC was required to issue an identical amount of common units to the Company in exchange for the underlying stock that had been awarded. As a result, the Company recorded an increase in the equity method investment and a non-cash issuance of common equity during the noted period. Additionally, as the stock-based awards were granted in the stock of a non-consolidated entity, Evolent Health LLC followed a “non-employee” model for recording stock-based compensation which required the awards to be marked-to-market through net income at the end of each reporting period until vesting occurred. Stock-based Compensation Expense Total compensation expense by award type and line item in our consolidated financial statements were as follows (in thousands): For the Years Ended December 31, 2016 2015 Award Type Stock options $ 15,647 $ 8,913 Performance-based stock options 374 — Restricted stock — 4,875 RSUs 2,583 942 Acceleration of unvested equity awards 3,897 — Total $ 22,501 $ 14,730 Line Item Cost of revenue $ 2,670 $ 1,144 Selling, general and administrative expenses 19,831 13,586 Total $ 22,501 $ 14,730 We recorded $3.9 million in stock-based compensation expense during 2016 for the acceleration of Valence Health’s unvested equity awards that vested upon the close of the Valence Health acquisition. During 2015 , we recorded $4.9 million in stock-based compensation for the acceleration of our unvested restricted shares which vested immediately after the Offering Reorganization and prior to the IPO. We did not recognize stock compensation expense in 2015 prior to the Offering Reorganization or for the year ended December 31, 2014. No stock-based compensation in the totals above was capitalized as software development costs for the year ended December 31, 2016 . Less than $0.1 million of stock-based compensation included in the totals above was capitalized as software development costs for the years ended December 31, 2015 and 2014 . Total unrecognized compensation expense (in thousands) and expected weighted-average period (in years) by award type for all of our stock-based incentive plans were as follows: As of December 31, 2016 Weighted- Average Expense Period Stock options $ 23,168 1.46 Performance-based stock options 1,415 3.17 RSUs 6,336 2.47 Total $ 30,919 Stock Options Other than the performance-based stock options described below, options awarded under the incentive compensation plans are generally subject to a four -year graded service vesting period where 25% of the award vests after each year of service and have a maximum term of 10 years . Information with respect to our options is presented in the following disclosures. The option price assumptions used for our stock option awards were as follows: For the Years Ended December 31, 2016 2015 2014 Weighted-average fair value per option granted $ 4.69 $ 10.41 $ 7.48 Assumptions: Expected term (in years) 6.25 6.25 6.25 Expected volatility 45 % 45 % 35 % Risk-free interest rate 1.3 - 1.5% 1.4 - 1.8% 1.8 - 2.0% Dividend yield — % — % — % The fair value of options is determined using a Black-Scholes options valuation model with the assumptions disclosed in the table above. The dividend rate is based on the expected dividend rate during the expected life of the option. Expected volatility is based on the historical volatility of a peer group of public companies over the most recent period commensurate with the estimated expected term of the Company’s awards due to the limited history of our own stock price. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected term of the options granted represents the weighted-average period of time from the grant date to the date of exercise, expiration or cancellation based on the midpoint convention. Information with respect to our stock options, including weighted-average remaining contractual term (in years) and aggregate intrinsic value (in thousands) was as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2015 5,689,928 $ 6.03 8.63 $ 34,589 Granted 905,241 10.42 Exercised (220,722 ) 5.70 Forfeited (369,102 ) 10.32 Outstanding as of December 31, 2016 6,005,345 $ 6.44 7.83 $ 50,193 Vested and expected to vest after December 31, 2016 6,005,345 $ 6.44 7.83 $ 50,193 Exercisable at December 31, 2016 2,629,035 $ 6.78 7.62 $ 26,944 The total fair value of options vested during the years ended December 31, 2016 , 2015 and 2014 , was $12.4 million , $11.1 million and $2.3 million , respectively. The total intrinsic value of options exercised during 2016 , 2015 and 2014 was $3.8 million , $0.5 million and less than $0.1 million , respectively. We issue new shares to satisfy option exercises. Performance-based stock option awards In March 2016, the Company granted approximately 0.3 million performance-based options to certain employees to create incentives for continued long-term success and to more closely align executive pay with our stockholders’ interests. Each of the grants is subject to market-based vesting, as follows: • one-third of the shares subject to the option award will vest in the event that the average closing price of the Company’s Class A common stock on the NYSE is at least $13.35 per share for a consecutive ninety day period; • one-third of the shares subject to the option award will vest in the event that the average closing price of the Company’s Class A common stock on the NYSE is at least $16.43 per share for a consecutive ninety day period; and • one-third of the shares subject to the option award will vest in the event that the average closing price of the Company’s Class A common stock on the NYSE is at least $19.51 per share for a consecutive ninety day period. In addition, the percentage of options per tranche that has satisfied the market-based performance hurdle is also subject to a service completion schedule. The aggregate percentage of options eligible to vest is based upon each of the service completions dates below: • 50% of the shares subject to the option award will vest on March 1, 2019, and • 50% of the shares subject to the option award will vest on March 1, 2020. We measured the fair value of the performance-based stock options using a Monte Carlo simulation approach with the following assumptions: risk-free interest rate of 1.83% , volatility of 65% , expected term of ten years and dividend yield of 0% . These inputs resulted in a weighted-average fair value per option granted of $6.68 . During 2016 all of the average stock price milestones were achieved and therefore the awards are now only subject to the service completion obligations. Information with respect to our performance-based stock options (aggregate intrinsic value shown in thousands, weighted-average remaining contractual term shown in years) was as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2015 — $ — — — Granted 267,770 10.27 Outstanding as of December 31, 2016 267,770 10.27 9.17 $ 1,213 Vested and expected to vest after December 31, 2016 267,770 $ 10.27 9.17 $ 1,213 Restricted stock Restricted stock awarded under the incentive compensation plans are generally subject to a graded service vesting period where 25% of the award vests after one year of service and the remaining award vests quarterly thereafter. Restricted stock awards are issued to the participants for no consideration. There were no restricted stock awards granted or forfeited during the years ended December 31, 2016 or 2015 . There were no restricted stock awards outstanding as of December 31, 2016 or 2015 . Restricted Stock Units Other than RSUs granted to our non-employee directors which have a one year vesting period, RSUs awarded under the incentive compensation plans are generally subject to a four -year graded service vesting period where 25% of the award vests after each year of service and are issued to the participants for no consideration. Information with respect to our RSUs is presented below: Weighted- Average Grant-Date Shares Fair Value Outstanding as of December 31, 2015 333,354 $ 16.84 Granted 473,944 11.60 Forfeited (81,324 ) 15.19 Vested (107,693 ) 16.68 Outstanding as of December 31, 2016 618,281 $ 13.07 The total fair value of RSUs vested during the year ended December 31, 2016 , was $1.8 million . There were no RSU vests for the years ended December 31, 2015 or 2014 .

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company incurs U.S. federal, state and local income taxes on the Company’s allocable share of taxable income of Evolent Health LLC. Our income before income tax is derived exclusively from U.S. sources. Components of income tax expense (benefit) (in thousands) consist of the following: For the Years Ended December 31, 2016 2015 Current Federal $ — $ 15 State and local — — Total current tax expense — 15 Deferred Federal (9,708 ) 7,092 State and local (1,138 ) 1,166 Total deferred tax expense (10,846 ) 8,258 Change in valuation allowance 91 15,202 Total tax expense (benefit) $ (10,755 ) $ 23,475 We did no t recognize income tax expense for the year ended December 31, 2014. A reconciliation of the U.S. statutory tax rate to our effective tax rate is presented below: For the Years Ended December 31, 2016 2015 2014 U.S. statutory tax rate 35.0 % 35.0 % 35.0 % U.S. state income taxes, net of U.S. federal tax benefit 4.0 % 4.9 % 4.0 % Change in valuation allowance (0.1 )% 4.4 % (26.5 )% Remeasurement gain — % (40.1 )% — % Non-deductible stock-based compensation expense — % 1.0 % (11.0 )% Goodwill impairment (18.7 )% — % — % Gain on contribution (5.0 )% — % — % Non-controlling interest (11.0 )% 1.4 % — % Other, net 0.3 % 0.2 % (1.5 )% Effective rate 4.5 % 6.8 % — % Deferred tax balances reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at the tax rates in effect when the temporary differences are expected to be recovered or settled. Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows: As of December 31, 2016 2015 Deferred Tax Assets Start-up and organizational costs $ 321 $ 362 Internally developed software costs 7,137 8,085 Net operating loss carryforwards 60,076 39,717 Other 509 521 Subtotal 68,043 48,685 Valuation allowance (26,376 ) (19,974 ) Total deferred tax assets 41,667 28,711 Deferred Tax Liabilities Equity-method investment 62,513 50,029 Total deferred tax liabilities 62,513 50,029 Net deferred tax assets (liabilities) $ (20,846 ) $ (21,318 ) Changes in our valuation allowance (in thousands) were as follows: For the Years Ended December 31, 2016 2015 2014 Balance at beginning-of-year $ 19,974 $ 6,914 $ 98 Charged to costs and expenses 91 15,202 6,816 Charged to other accounts (1) 6,311 (2,142 ) — Balance at end-of-year $ 26,376 $ 19,974 $ 6,914 (1) Amounts charged to other accounts includes an increase of $6.3 million and a decrease of $2.1 million charged to additional paid-in-capital for the years ended December 31, 2016 and 2015 , respectively. The Company continues to record a valuation allowance against the net deferred tax assets that are not more likely than not to be realized. This assessment is made without considering potentially offsetting deferred tax liabilities established with respect to certain indefinite lived components, or components of the deferred tax liability expected to reverse outside of the net operating loss carryover period, as these were appropriately not considered a source of future taxable income for realizing the deferred tax assets. For the year ended December 31, 2016 , the effective tax rate was 4.5% , due to the impact of the valuation allowance recorded against the Company’s net deferred tax assets, with the exception of indefinite lived components and those expected to reverse outside of the net operating loss carryover period as part of the outside basis difference in our partnership interest in Evolent Health LLC. The benefit recorded during the year primarily relates to release of this valuation allowance as a result of the Valence Health acquisition and movement in the indefinite lived book-over-tax basis difference not considered a source of future taxable income to support realizability of the deferred tax assets. For the year ended December 31, 2015 , the effective tax rate was 6.8% , due to the impact of the valuation allowance recorded against the Company’s net deferred tax assets, with the exception of indefinite lived components and those expected to reverse outside of the net operating loss carryover period as part of the outside basis difference in our partnership interest in Evolent Health LLC. Pursuant to the Offering Reorganization, the Company recorded $23.5 million in income tax provision, due to an increase in these components of the deferred tax liability related to the book basis as compared to the tax basis in Evolent Health LLC. As of December 31, 2016 , the Company had NOLs of approximately $155.7 million available to offset future taxable income that begin to expire in 2031 through 2037 . However, as realization of such tax benefit is not more likely than not, based on our evaluation, we have established a valuation allowance. Internal Revenue Code Section 382 imposes limitations on the utilization of NOLs in the event of certain changes in ownership of the Company, which may have occurred or could occur in the future. This could impose an annual limit on the Company’s ability to utilize NOLs existing prior to our IPO and could cause U.S. federal income taxes to be paid earlier than otherwise would be paid if such limitations were not in effect. As of each applicable period-end, the Company has not recognized any uncertain tax positions, penalties or interest as we have concluded that no such positions exist. The Company is not currently subject to income tax audits in any U.S. or state jurisdictions for any tax year. Tax Receivables Agreement Pursuant to the Offering Reorganization, subsequent exchanges of Class B common units of Evolent Health LLC, together with an equal number of shares of our Class B common stock, for shares of our Class A common stock, are expected to increase our tax basis in our share of Evolent Health LLC’s tangible and intangible assets. These increases in tax basis are expected to increase our depreciation and amortization deductions and create other tax benefits and, therefore, may reduce the amount of tax that we would otherwise be required to pay in the future. In addition, certain NOLs of Evolent Health Holdings (and of an affiliate of TPG) are available to us as a result of the Offering Reorganization. In connection with the Offering Reorganization, we entered into the TRA with the holders of Class B common units. The agreement requires us to pay to such holders 85% of the cash savings, if any, in U.S. federal, state and local and foreign income tax (as applicable) we realize as a result of any deductions attributable to future increases in tax basis following the exchanges described above (calculated assuming that any post-offering transfer of Class B common units had not occurred) or deductions attributable to imputed interest or future increases in tax basis following payments made under the TRA. We are accounting for these payments as contingent liabilities and will recognize them in our Consolidated Statements of Operations when their realization is probable. Additionally, pursuant to the same agreement we will pay the former stockholders of Evolent Health Holdings 85% of the amount of the cash savings, if any, in U.S. federal, state and local and foreign income tax that we realize as a result of the utilization of the NOLs of Evolent Health Holdings (and the affiliate of TPG) attributable to periods prior to the Offering Reorganization, approximately $79.3 million, as well as deductions attributable to imputed interest on any payments made under the agreement. We will benefit from the remaining 15% of any realized cash savings. The TRA was effective upon the completion of the Offering Reorganization and will remain in effect until all such tax benefits have been used or expired, or until the agreement is terminated. See Note 9 for additional discussion of the implications of the TRA.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Employee Benefit Plans We sponsor a tax-qualified 401(k) retirement plan that provides eligible U.S. employees with an opportunity to save for retirement on a tax advantaged basis. We make matching contributions to the plan in accordance with the plan documents and various limitations under Section 401(a) of the Internal Revenue Code of 1986, as amended. The Company made $4.3 million in contributions to the 401(k) plan for the year ended December 31, 2016 . After the Offering Reorganization in 2015 we contributed $2.4 million to the plan. There were no contributions to the plan for the year ended December 31, 2014 .

Investments In and Advances to

Investments In and Advances to Affiliates	12 Months Ended
	Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
Investments In and Advances to Affiliates	Investments In and Advances to Affiliates Georgia Physicians for Accountable Care LLC During the second quarter of 2016, the Company acquired 21,429 Class B units of GPAC for $3.0 million in cash. The investment represented a 27% economic interest and a 28% voting interest in GPAC at the date of the transaction. The Company has determined it has significant influence but that it does not have control over GPAC. Accordingly, the investment is accounted for under the equity method of accounting and the Company will be allocated its proportional share of GPAC’s profits and losses for each reporting period. For the year ended December 31, 2016 , Evolent Health, Inc.’s proportional share of the losses of GPAC was $0.8 million . As of December 31, 2016 , the Company owned a 26% economic interest and a 28% voting interest in GPAC. Concurrently, the Company signed a long-term services agreement with GPAC to provide certain management, operational and support services to help GPAC manage elements of its service offerings. Revenue related to the long-term services agreement for the year ended December 31, 2016 , was $0.2 million . Evolent Health LLC Subsequent to the Offering Reorganization in 2015 described in Note 4 , the Company consolidates the results of operations of Evolent Health LLC. Prior to the Offering Reorganization, we did not control Evolent Health LLC, but were able to exert significant influence and, accordingly, accounted for our investment in Evolent Health LLC using the equity method of accounting. The allocation of profits and losses to the shareholders of Evolent Health LLC were based upon the second amended and restated operating agreement of Evolent Health LLC. As part of recording our equity portion of the losses of Evolent Health LLC, the Company applied the hypothetical liquidation at book value basis of accounting which allocates profits and losses to the members based upon the value that would accrue to each member at each period end based upon a theoretical liquidation at book value at that time. During the period January 1, 2015, through June 3, 2015, Evolent Health, Inc.’s proportional share of the losses of Evolent Health LLC was $28.2 million , which included $0.8 million related to the amortization of a basis differential. During the year ended December 31, 2014, Evolent Health, Inc.’s proportional share of the losses of Evolent Health LLC was $25.2 million , which included $2.0 million , related to the amortization of a basis differential. The summary of the financial position of Evolent Health LLC as of December 31, 2016 and 2015 , is not presented as the Company consolidates the results of Evolent Health LLC after the date of the Offering Reorganization. The following is a summary of the operating results of Evolent Health LLC (in thousands) for the periods in which it was accounted for as an equity method investment: For the Years Ended December 31, 2015 (1) 2014 Total revenue $ 61,814 $ 100,888 Cost of revenue (exclusive of depreciation and amortization expenses) 44,839 73,122 Gross profit 16,975 27,766 Operating income (loss) (44,119 ) (52,449 ) Net income (loss) (44,079 ) (52,263 ) (1) January 1, 2015, through June 3, 2015.

Non-controlling Interests

Non-controlling Interests	12 Months Ended
	Dec. 31, 2016
Noncontrolling Interest [Abstract]
Non-controlling Interests	Non-controlling Interests In connection with the closing of the IPO, we used the net proceeds of the IPO to purchase 13.2 million newly-issued Class A common units in Evolent Health LLC. Additionally we acquired 2.1 million Class A common units in Evolent Health LLC, at $17.00 per unit, as a result of the merger of the TPG affiliate with and into Evolent Health, Inc. as further described in Note 4 . Immediately following the Offering Reorganization and IPO, the Company owned 70.3% of Evolent Health LLC. As described in Note 1 , the Company completed a secondary offering of 8.6 million shares of its Class A common stock at a public offering price of $22.50 per share in September 2016. The shares sold in the offering consisted of 6.4 million existing shares of the Company’s Class A common stock owned and 2.2 million newly-issued shares of the Company’s Class A common stock pursuant to the exercise of an existing exchange right. As a result of the Exchange and Evolent Health LLC’s cancellation of the Class B units, the Company’s economic interest in Evolent Health LLC increased from 71.0% to 74.6% and, accordingly, we reclassified a portion of our non-controlling interests into shareholders’ equity attributable to Evolent Health, Inc. During the year ended December 31, 2016, the Company issued shares of its Class A common stock to acquire Passport, Valence Health and Aldera. For each share of Class A common stock issued by the Company, we received a reciprocal number of Class A units from Evolent Health LLC in exchange for contributing the acquired entities to Evolent Health LLC. As a result, our economic interest in Evolent Health LLC increased during the year from 70.3% to 70.8% due to Class A common shares issued for the acquisition of Passport and from 74.6% to 77.4% as a result of Class A common shares issued for the acquisitions of Valence Health and Aldera. In order to account for the change in our ownership interest in Evolent Health LLC, we reclassified a portion of our non-controlling interests into shareholders’ equity attributable to Evolent Health, Inc. As of December 31, 2016 and 2015 , we owned 77.4% and 70.3% of Evolent Health LLC, respectively. Changes in non-controlling interests (in thousands) for the periods presented were: For the Years Ended December 31, 2016 2015 Non-controlling interests as of beginning-of-year $ 285,238 $ — Cumulative-effect adjustment from adoption of new accounting principle (139 ) — Estimated fair value non-controlling interests as a result of the Offering Reorganization — 332,793 Decrease in non-controlling interests as a result of the merger of the TPG affiliate with and into Evolent Health, Inc. — (34,875 ) Decrease in non-controlling interests as a result of the exchange of Class B common stock for Class A common stock as part of the Secondary Offering (28,220 ) — Reclassification of non-controlling interests 19,745 — Net income (loss) attributable to non-controlling interests (67,036 ) (12,680 ) Non-controlling interests as of end-of-year $ 209,588 $ 285,238

Fair Value Measurement

Fair Value Measurement	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement GAAP defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) assuming an orderly transaction in the most advantageous market at the measurement date. GAAP also establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. These tiers include: • Level 1 - inputs to the valuation methodology are quoted prices available in active markets for identical instruments as of the reporting date; • Level 2 - inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date and the fair value can be determined through the use of models or other valuation methodologies; and • Level 3 - inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the particular asset or liability being measured. Recurring Fair Value Measurements In accordance with GAAP, certain assets and liabilities are required to be recorded at fair value on a recurring basis. The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands): As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents (1) $ 1,128 $ — $ — $ 1,128 Liabilities Contingent consideration (2) $ — $ — $ 8,300 $ 8,300 As of December 31, 2015 Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents (1) $ 122,328 $ — $ — $ 122,328 (1) Represents the cash and cash equivalents that were held in a money market fund as of December 31, 2016 and 2015 , as presented in the tables above. (2) Represents the contingent earn-out consideration related to the Passport acquisition as described further in Note 4 . The Company recognizes any transfers between levels within the hierarchy as of the beginning of the reporting period. There were no transfers between fair value levels for the years ended December 31, 2016 and 2015 , respectively. In the absence of observable market prices, the fair value is based on the best information available and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks. As discussed in Note 4 , the strategic alliance with Passport includes a provision for additional equity consideration contingent upon the Company obtaining new third party Medicaid business in future periods. The significant unobservable inputs used in the fair value measurement of the Passport contingent consideration are the five -year risk-adjusted recurring revenue compound annual growth rate (“CAGR”) and the applicable discount rate. A significant increase in the assumed five -year risk-adjusted recurring revenue CAGR projection or decrease in discount rate in isolation would result in a significantly higher fair value of the contingent consideration. The changes in our contingent consideration, measured at fair value, for which the Company uses Level 3 inputs to determine fair value are as follows for the year ended December 31, 2016 (in thousands): Balance as of beginning of year $ — Additions 10,386 Settlements — Realized and unrealized (gains) losses, net (2,086 ) Balance as of end of year $ 8,300 The table above includes contingent consideration related to both the Passport and Valence Health transactions. As discussed in Note 4 , there was contingent consideration related to the Valence Health transaction, tied to Valence Health contracting new business activity on or before December 31, 2016. The Company determined the fair value of the contingent consideration was approximately $2.6 million as of the acquisition date. Valence Health did not contract sufficient business activity to be eligible for any contingent consideration as of December 31, 2016. Accordingly, the Company recorded a $2.6 million realized gain associated with the release of the liability. There is no contingent consideration obligation related to the Valence Health transaction as of December 31, 2016. The realized gain was offset by a $0.5 million realized loss associated with an increase in fair value of Passport’s contingent consideration, which was initially recorded at $7.8 million . As a result, the Company recorded a net realized gain of 2.1 million in fair value of contingent consideration for the year ended December 31, 2016. The Company did not have any assets or liabilities with Level 3 inputs for the year ended December 31, 2015 . The following table summarizes the fair value (in thousands), valuation techniques and significant unobservable inputs of our Level 3 fair value measurements as of December 31, 2016 : Fair Valuation Significant Assumption or Value Technique Unobservable Inputs Input Ranges Contingent consideration (1) $ 8,300 Real options approach Risk-adjusted recurring revenue CAGR 97.0 % (2) Discount rate/time value 2.5% - 4.5% (1) Related to additional Passport earn-out consideration as described further in Note 4 . (2) The risk-adjusted recurring revenue CAGR is calculated over the five year period 2017-2021. Given that there was no recurring revenue in 2016, the calculation of the 2017 growth rate is based on a theoretical 2016 recurring revenue of $1.0 million , resulting in a higher growth rate. The risk-adjusted recurring revenue CAGR over the period 2018-2021 is 50.8% . The Company did not hold any assets or liabilities with Level 3 inputs as of December 31, 2015 . Nonrecurring Fair Value Measurements In addition to the assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets and liabilities at fair value on a nonrecurring basis as required by GAAP. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. This includes goodwill, intangible assets, property, plant and equipment, held-to-maturity investments and equity method investments. While not carried at fair value on a recurring basis, these items are continually monitored for indicators of impairment that would indicate current carrying value is greater than fair value. In those situations, the assets are considered impaired and written down to current fair value. Refer to Notes 4 , 5 , 6 , 7 and 14 for further discussion of assets measured at fair value on a nonrecurring basis. Other Fair Value Disclosures The carrying amounts of cash and cash equivalents (those not held in a money market fund), restricted cash, receivables, prepaid expenses, accrued liabilities, accrued compensation and deferred rent approximate their fair values because of the relatively short-term maturities of these items and financial instruments. The estimated fair value of the 2021 Notes is $125.0 million , which approximates cost as of December 31, 2016. Fair value approximates cost as there were no significant movements in interest rates between the issuance date and December 31, 2016. See Note 8 for further discussion of the 2021 Notes.

Long-term Debt

Long-term Debt	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt In December 2016 , the Company issued $125.0 million aggregate principal amount of its 2.00% Convertible Senior Notes due 2021 in a Private Placement to qualified institutional buyers within the meaning of Rule 144A under the Securities Act of 1933, as amended. The 2021 Notes were issued at par for net proceeds of $120.2 million . We incurred $4.8 million of debt issuance costs in connection with the 2021 Notes, which we are amortizing to non-cash interest expense using the straight line method over the contractual term of the 2021 Notes, since this method was not materially different from the effective interest method. The closing of the Private Placement of the 2021 Notes occurred on December 5, 2016 . The Company intends to use the net proceeds for working capital and other general corporate purposes. Holders of the 2021 Notes are entitled to cash interest payments, which are payable semiannually in arrears on June 1 and December 1 of each year, beginning on June 1, 2017 , at a rate equal to 2.00% per annum. The 2021 Notes will mature on December 1, 2021 , unless earlier repurchased or converted in accordance with their terms prior to such date. In addition, holders of the 2021 Notes may require the Company to repurchase their 2021 Notes upon the occurrence of a fundamental change at a price equal to 100.00% of the principal amount of the 2021 Notes being repurchased, plus any accrued and unpaid interest. Upon maturity, and at the option of the holders of the 2021 Notes, the principal amount of the notes may be settled via shares of the Company’s Class A common stock. For the year ended December 31, 2016 , the Company recorded approximately $0.2 million in interest expense and less than $0.1 million in non-cash interest expense related to the amortization of deferred financing costs. The Company had no indebtedness for the years ended December 31, 2015 and 2014, respectively. The 2021 Notes are convertible into shares of the Company’s Class A common stock, based on an initial conversion rate of 41.6082 shares of Class A common stock per $1,000 principal amount of the 2021 Notes, which is equivalent to an initial conversion price of approximately $24.03 per share of the Company’s Class A common stock. In the aggregate, the 2021 Notes are initially convertible into 5.2 million shares of the Company’s Class A common stock (excluding any shares issuable by the Company upon a conversion in connection with a make-whole provision upon a fundamental change under the Indenture). The 2021 Notes are convertible, in multiples of $1,000 principal amount, at the option of the holders at any time prior to the close of business on the business day immediately preceding the maturity date. Upon conversion, we will deliver for each $1,000 principal amount of notes converted a number of shares of our Class A common stock equal to the applicable conversion rate (together with a cash payment in lieu of delivering any fractional share) on the third business day following the relevant conversion rate. Convertible Senior Notes Carrying Value The estimated fair value of the convertible notes is $125.0 million , which approximates cost as of December 31, 2016. Fair value approximates cost as there were no significant movements in interest rates between the issuance date and December 31, 2016. The 2021 Notes also have embedded conversion options and contingent interest provisions. The following table summarizes the carrying value of the long-term debt (in thousands) as of December 31, 2016 : Carrying value $ 120,283 Unamortized discount 4,717 Principal amount $ 125,000 Remaining amortization period (years) 4.9

Related Parties

Related Parties	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Parties	Related Parties As discussed in Note 14 , Evolent owned a 26% economic interest in GPAC as of December 31, 2016 , and is considered to have significant influence. As a result, the Company accounts for the investment under the equity method of accounting and is allocated its proportional share of GPAC’s profits and losses for each reporting period. In addition, the Company signed a long-term services agreement with GPAC to provide certain management, operational and support services to help GPAC manage elements of its service offerings. The Company also works closely with both of its founding investors, The Advisory Board and UPMC. The relationship with The Advisory Board is centered on providing certain specified services and making valuable connections with CEOs of health systems that could become partners. The Company’s relationship with UPMC is a subcontractor relationship where UPMC has agreed to execute certain tasks (primarily TPA services) relating to certain customer commitments. We also conduct business with a company in which UPMC holds a significant equity interest. Additionally, prior to the Offering Reorganization, we issued shares of our stock to certain of our partners while concurrently entering into revenue contracts with those partners. Those partners were considered related parties and the balances and/or transactions with them were reported on our consolidated financial statements for the periods in which they held an equity interest in Evolent Health, Inc. Subsequent to December 31, 2015 and as of December 31, 2016 , only one of our partners holds an equity interest in Evolent Health, Inc. That same partner represents a significant portion of our revenue and has a member of their management on our board of directors. That partner, our founding investors and their related businesses are considered related parties and the balances and/or transactions with them are reported on our consolidated financial statements.

Quarterly Results of Operations

Quarterly Results of Operations (unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Data [Abstract]
Quarterly Results of Operations (unaudited)	Quarterly Results of Operations (unaudited) The unaudited consolidated quarterly results of operations (in thousands, except per share data) were as follows: 1st (1) 2nd 3rd 4th 2016 Total revenue $ 49,449 $ 56,518 $ 60,210 $ 88,011 Total operating expenses 224,527 69,147 76,049 121,884 Net income (loss) (173,811 ) (11,999 ) (15,775 ) (25,193 ) Net income (loss) attributable to non-controlling interests (51,071 ) (3,612 ) (4,567 ) (7,786 ) Net income (loss) attributable to Evolent Health, Inc. (122,740 ) (8,387 ) (11,208 ) (17,407 ) Earnings (loss) per common share (2) Basic $ (2.91 ) $ (0.20 ) $ (0.26 ) $ (0.33 ) Diluted (2.91 ) (0.20 ) (0.26 ) (0.33 ) 2015 Total revenue $ — $ 10,414 $ 40,406 $ 46,058 Total operating expenses — 21,953 57,652 60,245 Net income (loss) (11,319 ) 356,488 (17,088 ) (8,267 ) Net income (loss) attributable to non-controlling interests — (3,424 ) (5,108 ) (4,148 ) Net income (loss) attributable to Evolent Health, Inc. (11,319 ) 359,912 (11,980 ) (4,119 ) Earnings (loss) per common share Basic $ (4.22 ) $ 25.69 $ (0.29 ) $ (0.10 ) Diluted (4.22 ) 9.73 (0.29 ) (0.10 ) (1) The results of operations for the three months ended March 31, 2016, were revised due to the adoption of ASU 2016-09 during the second quarter of 2016, which resulted in a cumulative effect reduction to beginning retaining earnings of $0.5 million and an increase in net income (loss) of approximately $0.1 million for the three months ended March 31, 2016. The increase was due to our policy election to recognize share-based award forfeitures as they occur, as opposed to applying an estimated forfeiture rate. We adopted the new guidance during the second quarter of 2016 and, as such, the adjusted results of operations were not reflected in our Form 10-Q for the three months ended March 31, 2016, filed with the SEC on May 16, 2016. The results of operations for the three months ended March 31, 2016, were previously adjusted due to the adoption during the second quarter of 2016 and recasted in the footnotes to the financial statements in our Form 10-Q for the quarter ended June 30, 2016. However, that disclosure reflected a $0.5 million cumulative effect impact of adoption as an expense during the first quarter of 2016 rather than a reduction to beginning retained earnings. The disclosure was corrected in our Form 10-Q for the quarter ended September 30, 2016. Management has concluded that the impact of the error is not material to any of the periods presented. There is no impact related to this error to any other period. The results above for the three months ended March 31, 2016, reflect the results presented in our Form 10-Q for the quarter ended September 30, 2016. See Note 2 for further discussion of the change in accounting principle as a result of the adoption of new guidance. The unaudited consolidated quarterly results of operations include certain unusual or infrequently occurring items that were material to the results of certain quarters as described below. As discussed in Note 2 , periods prior to the Offering Reorganization are not comparable to periods after the Offering Reorganization as the Company accounted for Evolent Health LLC as an equity method investment prior to June 4, 2015. Subsequent to the Offering Reorganization on June 4, 2015, we included the results of Evolent Health LLC in our consolidated financial statements. Therefore, the first quarter of 2015 is not directly comparable to periods after the Offering Reorganization, including the same period in 2016. During the second quarter of 2015 , the Offering Reorganization resulted in a one-time gain on consolidation of approximately $414.1 million , as described further in Note 4 . We also incurred additional stock-based compensation expense of $4.9 million as a result of IPO-related accelerated vesting of restricted stock in 2015. The Company recorded a goodwill impairment of 160.6 million during the first quarter of 2016 , as described further in Note 7 . During the fourth quarter of 2016, the Company completed the acquisition of Valence Health and Aldera. As described further in Note 4 , the acquisition of Valence Health resulted in a one-time lease abandonment expense of approximately $6.5 million , as well as approximately $3.9 million in stock compensation expense related to the acceleration of unvested Valence Health equity awards that vested upon the close of the Valence Health acquisition.

Basis of Presentation, Summar25

Basis of Presentation, Summary of Significant Accounting Policies and Change in Accounting Principle (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of presentation	Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with GAAP.
Accounting estimates and assumptions	Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. In the accompanying consolidated financial statements, estimates are used for, but not limited to, the valuation of assets, liabilities, consideration related to business combinations and step acquisitions, revenue recognition including discounts and credits, estimated selling prices for deliverables in multiple element arrangements, contingent payments, allowance for doubtful accounts, depreciable lives of assets, impairment of long lived assets (including equity method investments), stock-based compensation, deferred income taxes and valuation allowance, contingent liabilities, valuation of intangible assets (including goodwill) and the useful lives of intangible assets.
Principles of consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Evolent Health, Inc. and its subsidiaries. All inter-company accounts and transactions are eliminated in consolidation. Comprehensive Income No elements of comprehensive income were present for any periods presented.
Fair value measurement	Fair Value Measurement Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. Our Consolidated Balance Sheets include various financial instruments (primarily cash not held in money-market funds, restricted cash, accounts receivable, accounts payable, accrued expenses, deferred revenue and other liabilities) that are carried at cost and that approximate fair value. See Note 16 for further discussion regarding fair value measurement. Nonrecurring Fair Value Measurements In addition to the assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets and liabilities at fair value on a nonrecurring basis as required by GAAP. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. This includes goodwill, intangible assets, property, plant and equipment, held-to-maturity investments and equity method investments. While not carried at fair value on a recurring basis, these items are continually monitored for indicators of impairment that would indicate current carrying value is greater than fair value. In those situations, the assets are considered impaired and written down to current fair value. Refer to Notes 4 , 5 , 6 , 7 and 14 for further discussion of assets measured at fair value on a nonrecurring basis. Other Fair Value Disclosures The carrying amounts of cash and cash equivalents (those not held in a money market fund), restricted cash, receivables, prepaid expenses, accrued liabilities, accrued compensation and deferred rent approximate their fair values because of the relatively short-term maturities of these items and financial instruments.
Cash and cash equivalents	Cash and Cash Equivalents We consider all highly liquid instruments with original maturities of three months or less to be cash equivalents. The Company holds materially all of our cash in bank deposits with FDIC participating banks, at cost, which approximates fair value. Cash and cash equivalents held in money market funds are carried at fair value, which approximates cost.
Restricted cash	Restricted Cash and Restricted Investments Restricted cash and restricted investments are carried at cost and include cash and investments used to collateralize various contractual obligations
Accounts receivable and allowance for doubtful accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded when amounts are contractually billable under our customer contracts and are recorded at the invoiced amount and do not bear interest. The Company’s contracts typically include installment payments that do not necessarily correlate to the pattern of revenue recognition. In assessing the valuation of the allowance for doubtful accounts, management reviews the collectability of accounts receivable on an individual account basis. The allowance is adjusted periodically based on management’s determination of collectability, and any accounts that are determined to be uncollectible are written off against the allowance. The Company did no t record an allowance for doubtful accounts in 2016 or 2015 , as all amounts were determined to be collectible. Due to the timing of invoicing, the Company had recorded unbilled receivables of $1.8 million and $0.1 million as of December 31, 2016 and 2015 , respectively. Unbilled receivables are considered short-term and generally invoiced subsequent to the month the services are provided. While terms vary by contract, payment for services is typically contractually linked to the provision of specified services, with the timing of invoicing occurring in advance or subsequent to the services period.
Property and equipment, net	Property and Equipment, Net Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are computed using the straight-line method over the shorter of the estimated useful lives of the assets or the lease term. The following summarizes the estimated useful lives by asset classification: Computer hardware 3 years Furniture and equipment 3 years Internal-use software development costs 7 years Leasehold improvements Shorter of useful life or remaining lease term When an item is sold or retired, the cost and related accumulated depreciation or amortization is eliminated and the resulting gain or loss, if any, is recorded in our Consolidated Statements of Operations. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset group is not recoverable and exceeds fair value. The carrying amount of a long-lived asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset group. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset group exceeds its fair value.
Software development costs	Software Development Costs The Company capitalizes the cost of developing internal-use software, consisting primarily of personnel and related expenses (including stock-based compensation and employee taxes and benefits) for employees and third parties who devote time to their respective projects. Internal-use software costs are capitalized during the application development stage – when the research stage is complete and management has committed to a project to develop software that will be used for its intended purpose and any costs incurred during subsequent efforts to significantly upgrade and enhance the functionality of the software are also capitalized. Capitalized software costs are included in property and equipment, net on our Consolidated Balance Sheets. Amortization of internal-use software costs are recorded on a straight-line basis over their estimated useful life and begin once the project is substantially complete and the software is ready for its intended purpose.
Research and development costs	Research and Development Costs Research and development costs consist primarily of personnel and related expenses (including stock-based compensation) for employees engaged in research and development activities as well as third party fees. All such costs are expensed as incurred. We focus our research and development efforts on activities that support our technology infrastructure, clinical program development, data analytics and network development capabilities.
Goodwill	Goodwill We recognize the excess of the purchase price, plus the fair value of any non-controlling interests in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed at least annually for indications of impairment, with consideration given to financial performance and other relevant factors. We perform impairment tests of goodwill at our single reporting unit level, which is consistent with the way management evaluates our business. Acquisitions to date have been complementary to the Company’s core business, and therefore goodwill is assigned to our single reporting unit to reflect the synergies arising from each business combination. We perform a two-step test in our evaluation of the carrying value of goodwill, if qualitative factors determine it is necessary to complete the two-step goodwill impairment test. In Step 1 of the evaluation, the fair value is determined and compared to the carrying value. If the fair value is greater than the carrying value, then the carrying value is deemed to be recoverable, and Step 2 is not required. If the fair value estimate is less than the carrying value, it is an indicator that impairment may exist, and Step 2 is required. In Step 2, the implied fair value of goodwill is determined. The fair value as determined in Step 1 is assigned to all of its net assets (recognized and unrecognized) as if the entity was acquired in a business combination as of the date of the impairment test. If the implied fair value of goodwill is lower than its carrying amount, goodwill is impaired and written down to its fair value; and a charge is reported in impairment of goodwill on our Consolidated Statements of Operations.
Intangible assets, net	Intangible Assets, Net As noted above, on June 4, 2015, the Company completed the Offering Reorganization, following which we were required to remeasure the assets, liabilities and non-controlling interests of our equity-method investee, Evolent Health LLC, at fair value. The Company acquired additional intangible assets in conjunction with strategic acquisitions made during 2016 . Information regarding the determination and allocation of the fair value of the acquired assets and liabilities are further described within Note 4 . Identified intangible assets are recorded at their estimated fair values at the date of acquisition and are amortized over their respective estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are used. The following summarizes the estimated useful lives by asset classification: Corporate trade name 20 years Customer relationships 15-25 years Technology 5-7 years Intangible assets are reviewed for impairment if circumstances indicate the Company may not be able to recover the asset’s carrying value. The Company evaluates recoverability by determining whether the undiscounted cash flows expected to result from the use and eventual disposition of that asset or group exceed the carrying value at the evaluation date. If the undiscounted cash flows are not sufficient to cover the carrying value, the Company measures an impairment loss as the excess of the carrying amount of the long-lived asset or group over its fair value. See Note 7 for additional discussion regarding our intangible assets.
Long-term debt	The 2021 Notes are carried at cost, net of deferred financing costs, as long-term debt on the Consolidated Balance Sheets. The deferred financing costs will be amortized to non-cash interest expense using the straight line method over the contractual term of the 2021 Notes, since this method was not materially different from the effective interest rate method. Cash interest payments are due semi-annually in arrears - on June 1 and December 1 each year, starting on June 1, 2017. We will accrue interest expense monthly based on the annual coupon rate of 2.00% . The 2021 Notes have embedded conversion options and contingent interest provisions.
Leases	Leases The Company leases all of its office space and enters into various other operating lease agreements in conducting its business. At the inception of each lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. The operating lease agreements may contain tenant improvement allowances, rent holidays or rent escalation clauses. When such items are included in a lease agreement, the Company records a deferred rent asset or liability on our Consolidated Balance Sheets equal to the difference between the rent expense and future minimum lease payments due. The rent expense related to these items is recognized on a straight-line basis in the Consolidated Statements of Operations over the terms of the leases. In addition, the Company has entered into sublease agreements for some of its leased office space. Total rental income attributable to the subleases is offset against rent expense recorded in the Consolidated Statements of Operations over the terms of the leases. As of December 31, 2016 and 2015 , the Company had not entered into any capital leases. The Company is subject to non-cancellable leases for offices or portions of offices for which use might cease, resulting in a lease abandonment. When a lease abandonment is determined to have occurred, the present value of the future lease payments, net of estimated sublease payments, along with any unamortized tenant improvement costs, are recognized as lease abandonment expense in the Company’s Consolidated Statements of Operations with a corresponding liability in the Company’s Consolidated Balance Sheets.
Impairment of equity method investments	Impairment of Equity Method Investments The Company considers potential impairment triggers for its equity method investments, and the equity method investments will be written down to fair value if there is evidence of a loss in value which is other-than-temporary. The Company may estimate the fair value of its equity method investments by considering recent investee equity transactions, discounted cash flow analyses and recent operating results. If the fair value of the investment has dropped below the carrying amount, management considers several factors when determining whether other-than-temporary impairment has occurred. The estimation of fair value and whether other-than-temporary impairment has occurred requires the application of significant judgment and future results may vary from current assumptions.
Deferred revenue	Deferred Revenue Deferred revenue consists of billings or payments received in advance of providing the requisite services or other instances where the revenue recognition criteria have not been met. Amounts deferred that are not anticipated to be recognized as revenue within a year of the balance sheet date are reported as long-term deferred liabilities.
Revenue recognition	Revenue Recognition Revenue from the Company’s services is recognized when there is persuasive evidence of an arrangement, performance or delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured. At times, the Company enters into contracts that contain multiple deliverables and we evaluate each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (i) if the delivered item has value to the customer on a standalone basis, and (ii) if the contract includes a general right of return relative to the delivered item, and delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the vendor. Revenue is then allocated to the units of accounting based on an estimate of each unit’s relative selling price. Revenue Recognition - Transformation Transformation contracts consist of strategic assessments, or blueprint contracts, and implementation contracts. Based on the strategic assessment generated in a blueprint contract, a customer may decide to move forward with a population health or health plan strategy; in these cases, the customer enters into an implementation contract in which the Company provides services related to the launch of this strategy. The Company recognizes revenue associated with transformation contracts based on a proportionate performance method, where revenue is recognized each period in proportion to the amount of the contract completed during that period. Contract completion is measured using output measures as best estimated by labor hours incurred compared to the total estimated labor hours necessary to complete our performance obligations contained in the contract. Revenue Recognition - Platform and Operations After the transformation phase, the Company often enters into a multi-year service contract with its customers where various population health, health plan operations, third-party health plan and PBM services are provided on an ongoing basis to the members of the customers’ plans typically in exchange for a monthly service fee, PMPM fee or a percentage of plan premiums. Revenue from these contracts is recognized in the month in which the services are delivered. In certain arrangements, there is a contingent portion of our service fee including meeting service level targets, sharing in rebates, shared medical savings arrangements based on financial performance and other performance measures. The Company continuously monitors its compliance with these arrangements and recognizes revenue when the amount is estimable and there is evidence to support meeting the criteria. Credits and Discounts We also provide credits and discounts to our customers often based on achieving certain volume commitments or other criteria. Credits are assessed to determine whether they reflect significant and incremental discounts. If the discounts are significant, the Company allocates them between the contract deliverables or future purchases as appropriate. If the future credit expires unused, it is recognized as revenue at that time.
Stock-based compensation	Stock-based Compensation The Company sponsors a stock-based incentive plan that provides for the issuance of stock-based awards to employees and non-employee directors of the Company or its consolidated subsidiaries. Our stock-based awards generally vest over a four year period and expire ten years from the date of grant. We expense the fair value of stock-based awards granted under our incentive compensation plans. Fair value of stock options is determined using a Black-Scholes options valuation methodology. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, on a straight-line basis and is recognized as an increase to additional paid-in capital. Stock-based compensation expense is reflected in “Cost of revenue” and “Selling, general and administrative expenses” in our Consolidated Statements of Operations. Additionally we capitalize personnel expenses attributable to the development of internal-use software, which include stock-based compensation costs. We adopted ASU 2016-09 during 2016, which allows us to recognize share-based award forfeitures as they occur rather than applying an estimated forfeiture rate. See “Change in Accounting Principal” below for further discussion of the adoption of ASU 2016-09. Prior to the Offering Reorganization on June 3, 2015, stock-based awards were granted in the stock of the Company to employees of its equity-method investee, Evolent Health LLC. As such, the Company was required to use a “non-employee” model for recognizing stock-based compensation, which required the awards to be marked-to-market through net income at the end of each reporting period until vesting occurred. Subsequent to the Offering Reorganization described in Note 4 , stock-based awards are granted in the Company’s stock to the employees of Evolent Health LLC and compensation costs are therefore recognized using an “employee” model. Under the “employee” model, we no longer mark the awards to market at the end of each reporting period.
Income taxes	Income Taxes Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. We use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. We recognize interest and penalties accrued on any unrecognized tax exposures as a component of income tax expense. We did not have any such amounts accrued as of December 31, 2016 and 2015 , and we have not identified any uncertain income tax positions that could have a material impact to the consolidated financial statements. We are subject to taxation in various jurisdictions in the U.S. and remain subject to examination by taxing jurisdictions for the years 2011 and all subsequent periods due to the availability of NOL carryforwards. We are a holding company and our assets consist of our direct ownership in Evolent Health LLC, for which we are the managing member. Evolent Health LLC is classified as a partnership for U.S. federal and applicable state and local income tax purposes and, as such, is not subject to U.S. federal, state and local income taxes. Taxable income or loss generated by Evolent Health LLC is allocated to holders of its units, including us, on a pro rata basis. Accordingly, we are subject to U.S. federal, state and local income taxes with respect to our allocable share of any taxable income of Evolent Health LLC.
Earnings (loss) per share	Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing net income (loss) available to Class A common shareholders by the weighted-average number of Class A common shares outstanding. For periods of net income, and when the effects are not anti-dilutive, we calculate diluted earnings per share by dividing net income available to Class A common shareholders by the weighted average number of Class A common shares assuming the conversion of the convertible preferred securities, which occurred on the date of the Offering Reorganization, plus the weighted average number of Class A common shares assuming the conversion of our 2021 Notes, as well as the impact of all potential dilutive common shares, consisting primarily of common stock options and unvested restricted stock awards using the treasury stock method and our exchangeable Class B common stock. For periods of net loss, shares used in the diluted earnings (loss) per share calculation represent basic shares as using diluted shares would be anti-dilutive. Prior to the Offering Reorganization, the Company issued securities other than common stock that participated in dividends (“participating securities”), and therefore, we utilized the two-class method to calculate earnings (loss) per share for the applicable periods. Participating securities include redeemable convertible preferred stock. The two-class method requires a portion of earnings to be allocated to the participating securities to determine the earnings available to common stockholders. Earnings (loss) available to the common stockholders is equal to net income (loss) less dividends paid on preferred stock, assumed periodic cumulative preferred stock dividends, repurchases of preferred stock for an amount in excess of carrying value and an allocation of any remaining earnings (loss) in accordance with the bylaws between the outstanding common and preferred stock as of the end of each applicable period.
Operating segments	Operating Segments Operating segments are defined as components of a business that earn revenue and incur expenses for which discrete financial information is available that is evaluated, on a regular basis, by the chief operating decision maker (“CODM”) to decide how to allocate resources and assess performance. The Company’s CODM, the Chief Executive Officer, allocates resources at a consolidated level and therefore the Company views its operations and manages its business as one operating segment. All of the Company’s revenue is generated in the United States and all assets are located in the United States.
Recently issued accounting standards	Recently Issued Accounting Standards Adoption of New Accounting Standards In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . This standard requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards by requiring an assessment for a period of one year after the date that the financial statements are issued. Further, based on certain conditions and circumstances, additional disclosures may be required. This standard is effective beginning with the first annual period ending after December 15, 2016, and for all annual and interim periods thereafter. The Company adopted ASU 2014-15 during 2016. The adoption did not have a material impact on the Company’s financial statements as management has not identified any conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern for one year after the date the consolidated financial statements were available to be issued. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs . The purpose of the update was to simplify the presentation of debt issuance costs. The amendments in the update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The standard is effective for annual periods beginning after December 15, 2015, and interim periods within those fiscal years. The new guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The Company adopted ASU 2015-03 during 2016. As a result of the adoption, we recorded the $125.0 million Private Placement of the 2021 Notes as a long-term liability, net of deferred offering costs of $4.8 million . The deferred offering costs will be amortized into the principal note balance over the term of the 2021 Notes. Refer to Note 8 for further discussion of the 2021 Notes. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The update simplifies several aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. This standard is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted for any interim or annual period. The Company elected to early adopt this ASU during 2016, as described in Note 2 . Future Adoption of New Accounting Standards In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other - Simplifying the Test for Goodwill Impairment . The purpose of the ASU is to simplify the subsequent measurement of goodwill. The ASU eliminates Step 2 from the goodwill impairment test. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This update is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We anticipate this ASU may have a material impact on our consolidated financial statements if a future goodwill impairment test does not pass the Step 1 evaluation. We intend to early adopt the requirements of this standard for our annual and/or interim goodwill impairment tests for our fiscal year beginning January 1, 2017. In January 2017, the FASB issued ASU 2017-01, Business Combinations - Clarifying the Definition of a Business . The purpose of the ASU is to add guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU provides a screen to determine when an integrated set of assets and activities is not a business. The ASU also provides a framework to assist entities in evaluating whether both an input and a substantive process are present. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments should be applied prospectively on or after the effective date. We intend to adopt the requirements of this standard effective January 1, 2018, and are currently evaluating the impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash . The purpose of the ASU is to reduce diversity in practice regarding the classification and presentation of changes in restricted cash on the statement of cash flows. The amendments in the ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this ASU should be applied using a retrospective transition method to each period presented. We intend to adopt the requirements of this standard effective January 1, 2018, and are currently evaluating the impact of the adoption on our Consolidated Statements of Cash Flows. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments . This ASU provides updated guidance on eight specific cash flow issues to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. We intend to adopt the requirements of this standard effective January 1, 2018, and are currently evaluating the impact of the adoption on our Consolidated Statements of Cash Flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . With respect to assets measured at amortized cost, such as held-to-maturity assets, the update requires presentation of the amortized cost net of a credit loss allowance. The update eliminates the probable initial recognition threshold that was previously required prior to recognizing a credit loss on financial instruments. The credit loss estimate can now reflect an entity’s current estimate of all future expected credit losses as opposed to the previous standard, when an entity only considered past events and current conditions. With respect to available for sale debt securities, the update requires that credit losses be presented as an allowance rather than as a write-down. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We intend to adopt the requirements of this standard effective January 1, 2020 and are currently evaluating the impact of the adoption on our financial condition and results of operations. In February 2016, the FASB issued ASU 2016-02, Leases , in order to establish the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. This update introduces a new standard on accounting for leases, including a lessee model that brings most leases on the balance sheet. The new standard also aligns many of the underlying principles of the new lessor model with those in ASC 606, the FASB’s new revenue recognition standard (e.g., those related to evaluating when profit can be recognized). The standard also requires lessors to increase the transparency of their exposure to changes in value of their residual assets and how they manage that exposure. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. We intend to adopt the requirements of this standard effective January 1, 2019, and are currently evaluating the impact of the adoption on our financial condition and results of operations. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , in order to clarify the principles of recognizing revenue. This standard establishes the core principle of recognizing revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB defines a five-step process that systematically identifies the various components of the revenue recognition process, culminating with the recognition of revenue upon satisfaction of an entity’s performance obligation. By completing all five steps of the process, the core principles of revenue recognition will be achieved. In March 2016, the FASB issued an update to the new revenue standard (ASU 2014-09) in the form of ASU 2016-08, which amended the principal-versus-agent implementation guidance and illustrations in the new revenue guidance. The update clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued another update to the new revenue standard in the form of ASU 2016-10, which amended the guidance on identifying performance obligations and the implementation guidance on licensing. These ASUs were followed by two further updates issued during May 2016, including ASU 2016-11, which rescinds certain SEC guidance, such as the adoption of ASUs 2014-09 and 2014-16, including accounting for consideration given by a vendor to a customer, and ASU 2016-12, which is intended to clarify the objective of the collectability criterion while identifying the contract(s) with a customer. The new revenue standard (including updates) will be effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted only as of annual reporting periods beginning after December 15, 2016. We intend to adopt the requirements of this standard effective January 1, 2018, and while we are evaluating the impact to our financial condition and results of operations, we expect the adoption of this ASU to require the inclusion of additional disclosures surrounding the nature and timing of our revenue.

Basis of Presentation, Summar26

Basis of Presentation, Summary of Significant Accounting Policies and Change in Accounting Principle (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of restricted cash and cash equivalents	Restricted cash and restricted investments are carried at cost and include cash and investments used to collateralize various contractual obligations (in thousands) as follows: As of December 31, 2016 2015 Collateral for letters of credit for facility leases (1) $ 4,852 $ 3,710 Collateral with financial institutions (2) 4,950 — Pharmacy benefit management and claims processing services (3) 30,555 2,479 Other 59 96 Total restricted cash and restricted investments 40,416 6,285 Non-current restricted investments (2) 4,950 — Non-current restricted cash (1) 1,050 1,582 Total non-current restricted cash and restricted investments 6,000 1,582 Current restricted cash and restricted investments $ 34,416 $ 4,703 (1) Represents restricted cash of approximately $4.9 million related to collateral for letters of credit required in conjunction with lease agreements. See Note 9 for further discussion of our lease commitments. (2) Represents collateral for letters of credit held with financial institutions for risk-sharing arrangements. The collateral amount is invested in restricted certificates of deposit with original maturities in excess of 12 months. The restricted investments are classified as held-to-maturity and stated at cost. Fair value of the certificates of deposit is determined using Level 2 inputs and approximates cost as of December 31, 2016. See Note 9 for further discussion of our risk-sharing arrangements. (3) Represents cash held on behalf of clients to process PBM and other claims. Approximately $27.0 million of the amount in this category is related to a new client relationship established during 2016.
Summary of property and equipment	The following summarizes the estimated useful lives by asset classification: Computer hardware 3 years Furniture and equipment 3 years Internal-use software development costs 7 years Leasehold improvements Shorter of useful life or remaining lease term The following summarizes our property and equipment (in thousands): As of December 31, 2016 2015 Computer hardware $ 4,474 $ 232 Furniture and equipment 2,448 1,604 Internal-use software development costs 21,385 6,363 Leasehold improvements 8,108 5,830 Total property and equipment 36,415 14,029 Accumulated depreciation and amortization expenses (5,236 ) (1,233 ) Total property and equipment, net $ 31,179 $ 12,796
Intangible assets estimated useful lives	The following summarizes the estimated useful lives by asset classification: Corporate trade name 20 years Customer relationships 15-25 years Technology 5-7 years Details of our intangible assets (in thousands), including their weighted-average remaining useful lives (in years), are presented below: As of December 31, 2016 Weighted- Average Gross Net Remaining Carrying Accumulated Carrying Useful Life Amount Amortization Value Corporate trade name 18.4 $ 19,000 $ 1,505 $ 17,495 Customer relationships 21.5 203,500 9,018 194,482 Technology 5.2 50,500 7,753 42,747 Below market lease, net 9.4 4,323 124 4,199 Total $ 277,323 $ 18,400 $ 258,923 As of December 31, 2015 Weighted- Average Gross Net Remaining Carrying Accumulated Carrying Useful Life Amount Amortization Value Corporate trade name 19.4 $ 19,000 $ 554 $ 18,446 Customer relationships 24.4 120,000 2,797 117,203 Technology 6.4 30,000 2,497 27,503 Total $ 169,000 $ 5,848 $ 163,152

Transactions (Tables)

Transactions (Tables)	12 Months Ended
	Dec. 31, 2016
Organizational Transactions [Abstract]
Schedule of allocation of purchase price	The purchase price was allocated to the assets acquired based on their estimated fair values as of February 1, 2016 , as follows (in thousands): Purchase Consideration Fair value of Class A common stock issued $ 10,450 Fair value of contingent consideration 7,750 Total consideration $ 18,200 Tangible assets acquired Prepaid asset $ 6,900 Goodwill 11,300 Net assets acquired $ 18,200 The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of November 1, 2016 , as follows (in thousands): Purchase consideration: Fair value of Class A common stock issued $ 9,864 Cash for settlement of software license 7,000 Cash 17,481 Total consideration $ 34,345 Tangible assets acquired: Receivables $ 624 Prepaid expenses and other current assets 272 Property and equipment 1,065 Other non-current assets 9 Identifiable intangible assets acquired: Customer relationships 7,000 Technology 2,500 Liabilities assumed: Accounts payable 429 Accrued liabilities 1,204 Accrued compensation and employee benefits 605 Deferred revenue 44 Goodwill 25,157 Net assets acquired $ 34,345
Schedule of net assets acquired	The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of October 3, 2016 , as follows (in thousands): Purchase consideration: Fair value of Class A common stock issued $ 159,614 Fair value of contingent consideration 2,620 Cash 54,799 Total consideration $ 217,033 Tangible assets acquired: Restricted cash $ 1,829 Accounts Receivable 8,587 Prepaid expenses and other current assets 3,465 Property and equipment 6,241 Other non-current assets 313 Favorable leases assumed (net of unfavorable leases) 4,323 Identifiable intangible assets acquired: Customer relationships 69,000 Technology 18,000 Liabilities assumed: Accounts payable 5,703 Accrued liabilities 3,865 Accrued compensation and employee benefits 9,200 Deferred revenue 2,022 Other long-term liabilities 2,328 Net deferred tax liabilities 13,316 Goodwill 141,709 Net assets acquired $ 217,033 The allocation of the value of the transaction (in thousands) is included below: Goodwill $ 608,903 Intangible assets 169,000 Cash and restricted cash 21,930 Other assets 49,239 Remeasurement gain on previously held equity interest (414,133 ) Liabilities and deferred revenue (71,299 ) Non-controlling interests (332,793 ) Carrying value of previously held equity interest (30,847 ) Purchase price $ —
Business acquisition, pro forma information	For the Years Ended December 31, 2016 2015 2014 Revenue $ 361,944 $ 311,639 $ 95,888 Net income (loss) (225,091 ) (93,906 ) 307,162 Net income (loss) attributable to non-controlling interests (57,433 ) (28,684 ) (29,470 ) Net income (loss) attributable to Evolent Health, Inc. (167,658 ) (65,222 ) 336,632 Net income (loss) available to common shareholders: Basic $ (3.30 ) $ (1.50 ) $ 13.33 Diluted (3.30 ) (1.50 ) 6.73

Investments (Tables)

Investments (Tables)	12 Months Ended
	Dec. 31, 2016
Investments [Abstract]
Summary investment holdings	The amortized cost, gross unrealized gains and losses, and fair value of our investments as measured using Level 2 inputs (in thousands) were as follows: As of December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Costs Gains Losses Value U.S. Treasury bills $ 28,119 $ 116 $ 27 $ 28,208 Corporate bonds 16,222 81 8 16,295 Total investments $ 44,341 $ 197 $ 35 $ 44,503 As of December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Costs Gains Losses Value U.S. Treasury bills $ 28,306 $ 115 $ 181 $ 28,240 Corporate bonds 25,757 110 80 25,787 Total investments $ 54,063 $ 225 $ 261 $ 54,027
Investments classified by contractual maturity date	The amortized cost and fair value of our investments by contractual maturities (in thousands) were as follows: As of December 31, 2016 As of December 31, 2015 Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 44,341 $ 44,503 $ 9,445 $ 9,451 Due after one year through five years — — 44,618 44,576 Total $ 44,341 $ 44,503 $ 54,063 $ 54,027
Schedule of unrealized loss on held-to-maturity securities	uous unrealized loss position (in thousands, except number of securities): As of December 31, 2016 As of December 31, 2015 Number of Fair Unrealized Number of Fair Unrealized Securities Value Losses Securities Value Losses Unrealized loss for less than twelve months: U.S. Treasury bills 1 $ 4,002 $ 1 7 $ 28,240 $ 181 Corporate Bonds — — — 14 21,674 80 Total 1 $ 4,002 $ 1 21 $ 49,914 $ 261

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Summary of property and equipment	The following summarizes the estimated useful lives by asset classification: Computer hardware 3 years Furniture and equipment 3 years Internal-use software development costs 7 years Leasehold improvements Shorter of useful life or remaining lease term The following summarizes our property and equipment (in thousands): As of December 31, 2016 2015 Computer hardware $ 4,474 $ 232 Furniture and equipment 2,448 1,604 Internal-use software development costs 21,385 6,363 Leasehold improvements 8,108 5,830 Total property and equipment 36,415 14,029 Accumulated depreciation and amortization expenses (5,236 ) (1,233 ) Total property and equipment, net $ 31,179 $ 12,796

Goodwill and Intangible Asset30

Goodwill and Intangible Assets, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	The following table summarizes the changes in the carrying amount of goodwill (in thousands): For the Years Ended December 31, 2016 2015 Balance as of beginning-of-year $ 608,903 $ — Goodwill Acquired (1) 178,266 608,903 Goodwill Impairment (current and cumulative) (160,600 ) — Balance as of end-of-year $ 626,569 $ 608,903 (1) Represents goodwill acquired as a result of the Offering Reorganization for the year ended December 31, 2015, and as a result of the Passport, Valence Health and Aldera transactions for the year ended December 31, 2016, as discussed further in Note 4 .
Schedule of intangible assets details	The following summarizes the estimated useful lives by asset classification: Corporate trade name 20 years Customer relationships 15-25 years Technology 5-7 years Details of our intangible assets (in thousands), including their weighted-average remaining useful lives (in years), are presented below: As of December 31, 2016 Weighted- Average Gross Net Remaining Carrying Accumulated Carrying Useful Life Amount Amortization Value Corporate trade name 18.4 $ 19,000 $ 1,505 $ 17,495 Customer relationships 21.5 203,500 9,018 194,482 Technology 5.2 50,500 7,753 42,747 Below market lease, net 9.4 4,323 124 4,199 Total $ 277,323 $ 18,400 $ 258,923 As of December 31, 2015 Weighted- Average Gross Net Remaining Carrying Accumulated Carrying Useful Life Amount Amortization Value Corporate trade name 19.4 $ 19,000 $ 554 $ 18,446 Customer relationships 24.4 120,000 2,797 117,203 Technology 6.4 30,000 2,497 27,503 Total $ 169,000 $ 5,848 $ 163,152
Schedule of future estimated amortization of intangible assets	Future estimated amortization of intangible assets (in thousands) as of December 31, 2016 , is as follows: 2017 $ 19,027 2018 18,971 2019 19,065 2020 19,052 2021 18,086 Thereafter 164,722 Total $ 258,923

Commitments and Contingencies

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of lease abandonment liability	The following table presents a roll forward of the lease abandonment liability for the year ended December 31, 2016 : Accrual at December 31, 2015 $ — Abandonment expense 6,460 Abandonment amortization (360 ) Accrual at December 31, 2016 $ 6,100
Future minimum rental commitments	Future minimum rental commitments (in thousands) as of December 31, 2016 , were as follows (including the gross lease payments related to the 14 th Floor Space): 2017 $ 8,883 2018 8,694 2019 7,014 2020 6,964 2021 2,851 Thereafter 22,379 Total $ 56,785 Future minimum sublease payments receivable (in thousands) as of December 31, 2016 , were as follows: 2017 $ 1,754 2018 1,501 2019 815 2020 809 2021 556 Thereafter 6,551 Total $ 11,986
Future contractual obligations	Our contractual obligations related to vendor contracts (in thousands) as of December 31, 2016 , were as follows: Less More Than 1 to 3 3 to 5 Than 1 Year Years Years 5 Years Total Purchase obligations related to vendor contracts $ 2,276 $ 393 $ — $ — $ 2,669
Summary of major customers	The following table summarizes those partners who represented at least 10% of our revenue for the periods presented: For the Years Ended December 31, 2016 2015 Customer A 19.6 % * Customer B 14.5 % 15.6 % Customer C 12.7 % 11.2 % Customer D * 19.6 % Customer E * 14.1 % Customer F * 11.8 % * Represents less than 10.0% of the respective balance The following table summarizes those partners who represented at least 10% of our trade accounts receivable for the periods presented: As of December 31, 2016 2015 Customer B * 12.9 % Customer D * 23.2 % Customer F * 28.1 % Customer G * 11.4 % Customer H 14.3 % * * Represents less than 10.0% of the respective balance

Earnings (Loss) Per Common Sh32

Earnings (Loss) Per Common Share (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Computation of basic and diluted earnings per share	The following table sets forth the computation of basic and diluted earnings per share available for common stockholders (in thousands, except per share data): For the Years Ended December 31, 2016 2015 2014 Net income (loss) $ (226,778 ) $ 319,814 $ (25,246 ) Less: Net income (loss) attributable to non-controlling interests (67,036 ) (12,680 ) — Undeclared cumulative preferred dividends — 2,184 5,141 Redemption of preferred stock at amount in excess of carrying value — — 750 Net income (loss) available for common shareholders - Basic (159,742 ) 330,310 (31,137 ) Add: Net income (loss) attributable to non-controlling interests — (12,680 ) — Undeclared cumulative preferred dividends converted during the period — 2,184 — Net income (loss) available for common shareholders - Diluted (1)(2) $ (159,742 ) $ 319,814 $ (31,137 ) Weighted-average common shares outstanding - Basic 45,031 25,129 2,314 Dilutive effect of restricted stock and restricted stock units — 17 — Dilutive effect of options — 1,510 — Assumed conversion of convertible preferred stock at beginning-of-period — 9,397 — Assumed conversion of Class B common shares to Class A common shares — 10,083 — Weighted-average common shares outstanding - Diluted (2)(3) 45,031 46,136 2,314 Earnings (Loss) per Common Share Basic $ (3.55 ) $ 13.14 $ (13.46 ) Diluted (3.55 ) 6.93 (13.46 ) (1) For periods of net loss, net income (loss) available for common shareholders is the same for both basic and diluted purposes. (2) Each Class B common unit of Evolent Health LLC can be exchanged (together with a corresponding number of shares of our Class B common stock) for one share of our Class A common stock. As holders exchange their Class B common shares for Class A common shares, our interest in Evolent Health LLC will increase. Therefore, shares of our Class B common stock are not considered dilutive shares for the purposes of calculating our diluted earnings (loss) per common share as related adjustment to net income (loss) available for common shareholders would equally offset the additional shares, resulting in the same earnings (loss) per common share. (3) For periods of net loss, shares used in the earnings (loss) per common share calculation represent basic shares as using diluted shares would be anti-dilutive.
Schedule of antidilutive securities excluded from computation of earnings per share	Anti-dilutive shares (in thousands) excluded from the calculation of weighted-average common shares presented above are presented below: For the Years Ended December 31, 2016 2015 2014 Exchangeable Class B common stock 16,882 — — Convertible preferred stock — — 22,222 Restricted stock and RSUs 245 — 792 Stock options 1,973 — — Convertible senior notes 369 — — Total 19,469 — 23,014

Stock-based Compensation (Table

Stock-based Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense	Total compensation expense by award type and line item in our consolidated financial statements were as follows (in thousands): For the Years Ended December 31, 2016 2015 Award Type Stock options $ 15,647 $ 8,913 Performance-based stock options 374 — Restricted stock — 4,875 RSUs 2,583 942 Acceleration of unvested equity awards 3,897 — Total $ 22,501 $ 14,730 Line Item Cost of revenue $ 2,670 $ 1,144 Selling, general and administrative expenses 19,831 13,586 Total $ 22,501 $ 14,730
Schedule of unrecognized compensation expense	Total unrecognized compensation expense (in thousands) and expected weighted-average period (in years) by award type for all of our stock-based incentive plans were as follows: As of December 31, 2016 Weighted- Average Expense Period Stock options $ 23,168 1.46 Performance-based stock options 1,415 3.17 RSUs 6,336 2.47 Total $ 30,919
Option price assumptions	The option price assumptions used for our stock option awards were as follows: For the Years Ended December 31, 2016 2015 2014 Weighted-average fair value per option granted $ 4.69 $ 10.41 $ 7.48 Assumptions: Expected term (in years) 6.25 6.25 6.25 Expected volatility 45 % 45 % 35 % Risk-free interest rate 1.3 - 1.5% 1.4 - 1.8% 1.8 - 2.0% Dividend yield — % — % — %
Stock option information	Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2015 5,689,928 $ 6.03 8.63 $ 34,589 Granted 905,241 10.42 Exercised (220,722 ) 5.70 Forfeited (369,102 ) 10.32 Outstanding as of December 31, 2016 6,005,345 $ 6.44 7.83 $ 50,193 Vested and expected to vest after December 31, 2016 6,005,345 $ 6.44 7.83 $ 50,193 Exercisable at December 31, 2016 2,629,035 $ 6.78 7.62 $ 26,944
Performance-based stock option awards activity	Information with respect to our performance-based stock options (aggregate intrinsic value shown in thousands, weighted-average remaining contractual term shown in years) was as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2015 — $ — — — Granted 267,770 10.27 Outstanding as of December 31, 2016 267,770 10.27 9.17 $ 1,213 Vested and expected to vest after December 31, 2016 267,770 $ 10.27 9.17 $ 1,213
Restricted stock units information	Information with respect to our RSUs is presented below: Weighted- Average Grant-Date Shares Fair Value Outstanding as of December 31, 2015 333,354 $ 16.84 Granted 473,944 11.60 Forfeited (81,324 ) 15.19 Vested (107,693 ) 16.68 Outstanding as of December 31, 2016 618,281 $ 13.07

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Components of income tax expense (benefit)	Components of income tax expense (benefit) (in thousands) consist of the following: For the Years Ended December 31, 2016 2015 Current Federal $ — $ 15 State and local — — Total current tax expense — 15 Deferred Federal (9,708 ) 7,092 State and local (1,138 ) 1,166 Total deferred tax expense (10,846 ) 8,258 Change in valuation allowance 91 15,202 Total tax expense (benefit) $ (10,755 ) $ 23,475
Schedule of reconciliation of the U.S. statutory tax rate to our effective tax rate	A reconciliation of the U.S. statutory tax rate to our effective tax rate is presented below: For the Years Ended December 31, 2016 2015 2014 U.S. statutory tax rate 35.0 % 35.0 % 35.0 % U.S. state income taxes, net of U.S. federal tax benefit 4.0 % 4.9 % 4.0 % Change in valuation allowance (0.1 )% 4.4 % (26.5 )% Remeasurement gain — % (40.1 )% — % Non-deductible stock-based compensation expense — % 1.0 % (11.0 )% Goodwill impairment (18.7 )% — % — % Gain on contribution (5.0 )% — % — % Non-controlling interest (11.0 )% 1.4 % — % Other, net 0.3 % 0.2 % (1.5 )% Effective rate 4.5 % 6.8 % — %
Schedule of deferred tax assets and liabilities	Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows: As of December 31, 2016 2015 Deferred Tax Assets Start-up and organizational costs $ 321 $ 362 Internally developed software costs 7,137 8,085 Net operating loss carryforwards 60,076 39,717 Other 509 521 Subtotal 68,043 48,685 Valuation allowance (26,376 ) (19,974 ) Total deferred tax assets 41,667 28,711 Deferred Tax Liabilities Equity-method investment 62,513 50,029 Total deferred tax liabilities 62,513 50,029 Net deferred tax assets (liabilities) $ (20,846 ) $ (21,318 )
Changes in valuation allowance	Changes in our valuation allowance (in thousands) were as follows: For the Years Ended December 31, 2016 2015 2014 Balance at beginning-of-year $ 19,974 $ 6,914 $ 98 Charged to costs and expenses 91 15,202 6,816 Charged to other accounts (1) 6,311 (2,142 ) — Balance at end-of-year $ 26,376 $ 19,974 $ 6,914 (1) Amounts charged to other accounts includes an increase of $6.3 million and a decrease of $2.1 million charged to additional paid-in-capital for the years ended December 31, 2016 and 2015 , respectively.

Investments In and Advances t35

Investments In and Advances to Affiliates (Tables)	12 Months Ended
	Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	The summary of the financial position of Evolent Health LLC as of December 31, 2016 and 2015 , is not presented as the Company consolidates the results of Evolent Health LLC after the date of the Offering Reorganization. The following is a summary of the operating results of Evolent Health LLC (in thousands) for the periods in which it was accounted for as an equity method investment: For the Years Ended December 31, 2015 (1) 2014 Total revenue $ 61,814 $ 100,888 Cost of revenue (exclusive of depreciation and amortization expenses) 44,839 73,122 Gross profit 16,975 27,766 Operating income (loss) (44,119 ) (52,449 ) Net income (loss) (44,079 ) (52,263 ) (1) January 1, 2015, through June 3, 2015.

Non-controlling Interests (Tabl

Non-controlling Interests (Tables)	12 Months Ended
	Dec. 31, 2016
Noncontrolling Interest [Abstract]
Schedule of changes in non-controlling interests	Changes in non-controlling interests (in thousands) for the periods presented were: For the Years Ended December 31, 2016 2015 Non-controlling interests as of beginning-of-year $ 285,238 $ — Cumulative-effect adjustment from adoption of new accounting principle (139 ) — Estimated fair value non-controlling interests as a result of the Offering Reorganization — 332,793 Decrease in non-controlling interests as a result of the merger of the TPG affiliate with and into Evolent Health, Inc. — (34,875 ) Decrease in non-controlling interests as a result of the exchange of Class B common stock for Class A common stock as part of the Secondary Offering (28,220 ) — Reclassification of non-controlling interests 19,745 — Net income (loss) attributable to non-controlling interests (67,036 ) (12,680 ) Non-controlling interests as of end-of-year $ 209,588 $ 285,238

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Summary of assets at fair value on recurring basis	The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands): As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents (1) $ 1,128 $ — $ — $ 1,128 Liabilities Contingent consideration (2) $ — $ — $ 8,300 $ 8,300 As of December 31, 2015 Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents (1) $ 122,328 $ — $ — $ 122,328 (1) Represents the cash and cash equivalents that were held in a money market fund as of December 31, 2016 and 2015 , as presented in the tables above. (2) Represents the contingent earn-out consideration related to the Passport acquisition as described further in Note 4 .
Summary of liabilities at fair value on recurring basis	The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands): As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents (1) $ 1,128 $ — $ — $ 1,128 Liabilities Contingent consideration (2) $ — $ — $ 8,300 $ 8,300 As of December 31, 2015 Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents (1) $ 122,328 $ — $ — $ 122,328 (1) Represents the cash and cash equivalents that were held in a money market fund as of December 31, 2016 and 2015 , as presented in the tables above. (2) Represents the contingent earn-out consideration related to the Passport acquisition as described further in Note 4 .
Changes in contingent consideration measured at fair value	The changes in our contingent consideration, measured at fair value, for which the Company uses Level 3 inputs to determine fair value are as follows for the year ended December 31, 2016 (in thousands): Balance as of beginning of year $ — Additions 10,386 Settlements — Realized and unrealized (gains) losses, net (2,086 ) Balance as of end of year $ 8,300
Valuation techniques and significant unobservable inputs of Level 3 fair value measurements	The following table summarizes the fair value (in thousands), valuation techniques and significant unobservable inputs of our Level 3 fair value measurements as of December 31, 2016 : Fair Valuation Significant Assumption or Value Technique Unobservable Inputs Input Ranges Contingent consideration (1) $ 8,300 Real options approach Risk-adjusted recurring revenue CAGR 97.0 % (2) Discount rate/time value 2.5% - 4.5% (1) Related to additional Passport earn-out consideration as described further in Note 4 . (2) The risk-adjusted recurring revenue CAGR is calculated over the five year period 2017-2021. Given that there was no recurring revenue in 2016, the calculation of the 2017 growth rate is based on a theoretical 2016 recurring revenue of $1.0 million , resulting in a higher growth rate. The risk-adjusted recurring revenue CAGR over the period 2018-2021 is 50.8% .

Long-term Debt (Tables)

Long-term Debt (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of convertible debt	The following table summarizes the carrying value of the long-term debt (in thousands) as of December 31, 2016 : Carrying value $ 120,283 Unamortized discount 4,717 Principal amount $ 125,000 Remaining amortization period (years) 4.9

Quarterly Results of Operatio39

Quarterly Results of Operations (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Data [Abstract]
Quarterly results of operations	The unaudited consolidated quarterly results of operations (in thousands, except per share data) were as follows: 1st (1) 2nd 3rd 4th 2016 Total revenue $ 49,449 $ 56,518 $ 60,210 $ 88,011 Total operating expenses 224,527 69,147 76,049 121,884 Net income (loss) (173,811 ) (11,999 ) (15,775 ) (25,193 ) Net income (loss) attributable to non-controlling interests (51,071 ) (3,612 ) (4,567 ) (7,786 ) Net income (loss) attributable to Evolent Health, Inc. (122,740 ) (8,387 ) (11,208 ) (17,407 ) Earnings (loss) per common share (2) Basic $ (2.91 ) $ (0.20 ) $ (0.26 ) $ (0.33 ) Diluted (2.91 ) (0.20 ) (0.26 ) (0.33 ) 2015 Total revenue $ — $ 10,414 $ 40,406 $ 46,058 Total operating expenses — 21,953 57,652 60,245 Net income (loss) (11,319 ) 356,488 (17,088 ) (8,267 ) Net income (loss) attributable to non-controlling interests — (3,424 ) (5,108 ) (4,148 ) Net income (loss) attributable to Evolent Health, Inc. (11,319 ) 359,912 (11,980 ) (4,119 ) Earnings (loss) per common share Basic $ (4.22 ) $ 25.69 $ (0.29 ) $ (0.10 ) Diluted (4.22 ) 9.73 (0.29 ) (0.10 ) (1) The results of operations for the three months ended March 31, 2016, were revised due to the adoption of ASU 2016-09 during the second quarter of 2016, which resulted in a cumulative effect reduction to beginning retaining earnings of $0.5 million and an increase in net income (loss) of approximately $0.1 million for the three months ended March 31, 2016. The increase was due to our policy election to recognize share-based award forfeitures as they occur, as opposed to applying an estimated forfeiture rate. We adopted the new guidance during the second quarter of 2016 and, as such, the adjusted results of operations were not reflected in our Form 10-Q for the three months ended March 31, 2016, filed with the SEC on May 16, 2016. The results of operations for the three months ended March 31, 2016, were previously adjusted due to the adoption during the second quarter of 2016 and recasted in the footnotes to the financial statements in our Form 10-Q for the quarter ended June 30, 2016. However, that disclosure reflected a $0.5 million cumulative effect impact of adoption as an expense during the first quarter of 2016 rather than a reduction to beginning retained earnings. The disclosure was corrected in our Form 10-Q for the quarter ended September 30, 2016. Management has concluded that the impact of the error is not material to any of the periods presented. There is no impact related to this error to any other period. The results above for the three months ended March 31, 2016, reflect the results presented in our Form 10-Q for the quarter ended September 30, 2016. See Note 2 for further discussion of the change in accounting principle as a result of the adoption of new guidance.

Organization (Details)

Organization (Details) $ / shares in Units, shares in Thousands, $ in Thousands	Jun. 05, 2015USD ($)class$ / sharesshares	Sep. 30, 2016$ / sharesshares	Dec. 31, 2016USD ($)	Dec. 31, 2016USD ($)shares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)shares	Sep. 29, 2016	Mar. 31, 2016$ / shares	Sep. 30, 2015$ / shares	Dec. 31, 2013USD ($)
Organization [Line Items]
Share price (in dollars per share) | $ / shares					$ 14.73			$ 10.33	$ 19.51
Proceeds from initial public offering, net of offering costs | $	$ 209,100			$ 0	$ 209,087	$ 0
Offering expenses | $	$ 3,200		$ 1,600	0	1,361	0
Number of classes of common stock | class	2
Cash and cash equivalents | $			$ 134,563	$ 134,563	$ 145,726	$ 0				$ 0
Class A
Organization [Line Items]
Common shares authorized		8,600
Common Stock | Class A
Organization [Line Items]
Common shares authorized	13,200				13,225	272
Share price (in dollars per share) | $ / shares	$ 17	$ 22.50
Shares issued in acquisition	2,100			8,451	2,051
Common Stock | Class A | Investor Stockholders
Organization [Line Items]
Common shares authorized		2,200
Evolent Health LLC | Pre-Organization Members
Organization [Line Items]
Evolent Health LLC ownership interest				100.00%
Evolent Health, Selling Stockholders | Common Stock | Class A
Organization [Line Items]
Common shares authorized		6,400
Evolent Health LLC
Organization [Line Items]
Voting interest percentage by parent			1	1	1
Parent's ownership percentage	70.30%	74.60%	77.40%	77.40%	70.30%		71.00%

Basis of Presentation, Summar41

Basis of Presentation, Summary of Significant Accounting Policies and Change in Accounting Principle - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash and restricted investments		$ 40,416,000	$ 6,285,000
Non-current restricted investments		4,950,000	0
Non-current restricted cash		1,050,000	1,582,000
Total non-current restricted cash and restricted investments		6,000,000	1,582,000
Current restricted cash and restricted investments		34,416,000	4,703,000
Allowance for doubtful accounts receivable		0	0
Unbilled receivables		1,800,000	100,000
Research and development costs		11,100,000	5,800,000	$ 0
Goodwill impairment	$ 160,600,000	160,600,000	0	0
Equity method investment, other than temporary impairment		$ 0	0	$ 0
Vesting period		4 years
Expiration period		10 years
Collateral for letters of credit for facility leases
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash and restricted investments		$ 4,852,000	3,710,000
Collateral with financial institutions
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash and restricted investments		4,950,000	0
Pharmacy benefit management and claims processing services
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash and restricted investments		30,555,000	2,479,000
Other
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash and restricted investments		59,000	$ 96,000
Restricted Cash for Benefit Management Services, Client Relationship Established in 2016
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash and restricted investments		$ 27,000,000

Basis of Presentation, Summar42

Basis of Presentation, Summary of Significant Accounting Policies and Change in Accounting Principle - Estimated Useful Life of Property, Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2016
Computer hardware
Property and Equipment [Line Items]
Useful life	3 years
Furniture and equipment
Property and Equipment [Line Items]
Useful life	3 years
Internal-use software development costs
Property and Equipment [Line Items]
Useful life	7 years

Basis of Presentation, Summar43

Basis of Presentation, Summary of Significant Accounting Policies and Change in Accounting Principle - Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2016
Corporate trade name
Finite-Lived Intangible Assets [Line Items]
Useful life	20 years
Customer relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life	15 years
Customer relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life	25 years
Technology | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life	5 years
Technology | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life	7 years

Basis of Presentation, Summar44

Basis of Presentation, Summary of Significant Accounting Policies and Change in Accounting Principle - Long-term Debt (Details) - Convertible Senior Notes due 2021 - Senior Notes $ in Thousands	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Face amount	$ 125,000
Interest rate	2.00%

Basis of Presentation, Summar45

Basis of Presentation, Summary of Significant Accounting Policies and Change in Accounting Principle - Change in Accounting Principle (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 01, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings (accumulated deficit)	$ 146,617				$ 306,688				$ 146,617	$ 306,688
Net income (loss)	$ (25,193)	$ (15,775)	$ (11,999)	$ (173,811)	$ (8,267)	$ (17,088)	$ 356,488	$ (11,319)	$ (226,778)	$ 319,814	$ (25,246)
ASU 2016-09 | Election to Recognize Share-based Award Forfeitures As They Occur
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings (accumulated deficit)												$ (500)
Net income (loss)				$ 100

Recently Issued Accounting St46

Recently Issued Accounting Standards Recently Issued Accounting Standards (Details) - Senior Notes - Convertible Senior Notes due 2021 $ in Thousands	Dec. 31, 2016USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Face amount	$ 125,000
Debt issuance costs	4,800
Accounting Standards Update 2015-03
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	4,800
Accounting Standards Update 2015-03 | Other Noncurrent Liabilities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Face amount	$ 125,000

Transactions - Aldera (Details)

Transactions - Aldera (Details) - USD ($) $ in Thousands, shares in Millions	Nov. 01, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Oct. 31, 2016	Sep. 30, 2016	Sep. 29, 2016	Jun. 05, 2015
Liabilities assumed:
Goodwill		$ 626,569	$ 608,903	$ 0				$ 608,900
Revenue		361,944	311,639	95,888
Net income (loss)		$ (225,091)	$ (93,906)	$ 307,162
Evolent Health LLC
Business Acquisition [Line Items]
Parent's ownership percentage		77.40%	70.30%			74.60%	71.00%	70.30%
Aldera Holdings, Inc.
Business Acquisition [Line Items]
Percentage of voting interests acquired	100.00%
Transaction costs		$ 200
Purchase consideration:
Fair value of Class A common stock issued	$ 9,864
Cash for settlement of software license	7,000
Cash	17,481
Total consideration	34,345
Tangible assets acquired:
Accounts Receivable	624
Prepaid expenses and other current assets	272
Property and equipment	1,065
Other non-current assets	9
Liabilities assumed:
Accounts payable	429
Accrued liabilities	1,204
Accrued compensation and employee benefits	605
Deferred revenue	44
Goodwill	25,157
Net assets acquired	34,345
Revenue		1,200
Net income (loss)		$ (1,800)
Aldera Holdings, Inc. | Customer relationships
Identifiable intangible assets acquired:
Identifiable intangible assets	$ 7,000
Liabilities assumed:
Useful life	15 years
Aldera Holdings, Inc. | Technology
Identifiable intangible assets acquired:
Identifiable intangible assets	$ 2,500
Liabilities assumed:
Useful life	5 years
Aldera Holdings, Inc. | Class A Common Stock
Business Acquisition [Line Items]
Equity interest issued or issuable, number of shares	0.5
Aldera Holdings, Inc. | Evolent Health LLC
Business Acquisition [Line Items]
Parent's ownership percentage	77.40%				77.20%

Transactions - Valence Health (

Transactions - Valence Health (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	Oct. 03, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Oct. 02, 2016	Sep. 30, 2016	Sep. 29, 2016	Jun. 05, 2015
Liabilities assumed:
Goodwill		$ 626,569	$ 608,903	$ 0				$ 608,900
Deferred tax liability		20,846	21,318
Revenue		361,944	311,639	95,888
Net income (loss)		(225,091)	(93,906)	307,162
Remaining lease payments		56,785
Net income (loss) attributable to non-controlling interests		(57,433)	(28,684)	(29,470)
Net income (loss) attributable to Evolent Health, Inc.		$ (167,658)	$ (65,222)	$ 336,632
Net income (loss) available to common shareholders, basic (in dollars per share)		$ (3.30)	$ (1.50)	$ 13.33
Net income (loss) available to common shareholders, diluted (in dollars per share)		$ (3.30)	$ (1.50)	$ 6.73
Evolent Health LLC
Business Acquisition [Line Items]
Parent's ownership percentage		77.40%	70.30%			74.60%	71.00%	70.30%
Valence Health Inc.
Business Acquisition [Line Items]
Percentage of voting interests acquired	100.00%
Percentage of issued and outstanding common stock	10.50%
Contingent consideration arrangements (up to)	$ 12,400
Contingent consideration arrangements fair value	2,600
Transaction costs	2,700
Purchase consideration:
Fair value of Class A common stock issued in connection with acquisition	159,614
Cash for settlement of software license	2,620
Cash	54,799
Total consideration	217,033
Tangible assets acquired:
Restricted cash	1,829
Accounts Receivable	8,587
Prepaid expenses and other current assets	3,465
Property and equipment	6,241
Other non-current assets	313
Favorable leases assumed (net of unfavorable leases)	4,323
Liabilities assumed:
Accounts payable	5,703
Accrued liabilities	3,865
Accrued compensation and employee benefits	9,200
Deferred revenue	2,022
Other long-term liabilities	(2,328)
Net deferred tax liabilities	13,316
Goodwill	141,709
Net assets acquired	217,033
Acquired receivables	9,100
Acquired receivables, estimated uncollectible	500
Deferred tax liability	13,300
Gain (loss) on disposition of assets	$ 52,700
Revenue		$ 24,100
Net income (loss)		(18,100)
Gain (loss) from lease abandonment		$ (6,500)
Valence Health Inc. | Evolent Health LLC
Business Acquisition [Line Items]
Parent's ownership percentage	77.20%				74.60%
Valence Health Inc. | Customer relationships
Identifiable intangible assets acquired:
Identifiable intangible assets	$ 69,000
Liabilities assumed:
Useful life	20 years
Valence Health Inc. | Technology
Identifiable intangible assets acquired:
Identifiable intangible assets	$ 18,000
Liabilities assumed:
Useful life	5 years
Valence Health Inc. | Selling, general and administrative expenses
Business Acquisition [Line Items]
Transaction costs	$ 2,600
Valence Health Inc. | Cost of revenue
Business Acquisition [Line Items]
Transaction costs	$ 100
Valence Health Inc. | Class A Common Stock
Business Acquisition [Line Items]
Equity interest issued or issuable, number of shares	7

Transactions - Passport (Detail

Transactions - Passport (Details) shares in Millions, beneficiary in Millions	Feb. 01, 2016USD ($)beneficiaryshares	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jun. 05, 2015USD ($)
Business Acquisition [Line Items]
Increase (decrease) in contingent consideration liability		$ (2,086,000)	$ 0	$ 0
Tangible assets acquired:
Goodwill		626,569,000	$ 608,903,000	$ 0	$ 608,900,000
Passport
Business Acquisition [Line Items]
Number of medicaid and medicare advantage beneficiaries | beneficiary	0.3
Additional equity consideration (up to)	$ 10,000,000
Term of health plan management and managed care services arrangement	10 years
Transaction costs	$ 200,000
Contingent consideration, liability	7,800,000	8,300,000
Increase (decrease) in contingent consideration liability		500,000
Purchase consideration:
Fair value of Class A common stock issued	10,450,000
Fair value of contingent consideration	7,750,000
Total consideration	18,200,000
Tangible assets acquired:
Prepaid asset	6,900,000
Goodwill	11,300,000
Net assets acquired	$ 18,200,000
Revenues		49,800,000
Net income (loss)		$ (6,400,000)
Passport | Class A | Common Stock
Business Acquisition [Line Items]
Issuance of common stock, shares | shares	1.1

Transactions - Additional Infor

Transactions - Additional Information (Details) $ in Millions	Jun. 05, 2015USD ($)classvoteshares	Dec. 31, 2016shares	Dec. 31, 2015shares	Sep. 30, 2016	Sep. 29, 2016
Class of Stock [Line Items]
Number of classes of common stock | class	2
Evolent Health LLC
Class of Stock [Line Items]
Parent's ownership percentage	70.30%	77.40%	70.30%	74.60%	71.00%
Voting interest percentage by parent		1	1
Evolent Health LLC
Class of Stock [Line Items]
Number of classes of common stock | class	2
Pre-Organization Members | Evolent Health LLC
Class of Stock [Line Items]
Evolent Health LLC ownership interest	100.00%
Evolent Health LLC
Class of Stock [Line Items]
Estimated fair value of Evolent Health LLC | $	$ 777.8
Class A
Class of Stock [Line Items]
Number of votes per share of commons stock | vote	1
Class A | Evolent Health LLC
Class of Stock [Line Items]
Required ratio of outstanding common shares to outstanding common units		1
Class A | Common Stock
Class of Stock [Line Items]
Shares issued in acquisition	2,100,000	8,451,000	2,051,000
Class A | Evolent Health Holdings, Inc. Merger
Class of Stock [Line Items]
Shares of Class A common stock receivable in exchange for each share of Class A common stock held in Evolent Health Holdings	4
Class A | Affiliate of TPG Merger | Texas Pacific Group
Class of Stock [Line Items]
Percent of common stock held in affiliate exchanged for shares of Class A common stock and the right to certain payments under the TRA	100.00%
Class B
Class of Stock [Line Items]
Number of votes per share of commons stock | vote	1
Class B | Common Stock
Class of Stock [Line Items]
Shares issued in acquisition			(2,051,000)

Transactions - Net Assets Acqui

Transactions - Net Assets Acquired (Details) - USD ($) $ in Thousands	Jun. 05, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill	$ 608,900	$ 626,569	$ 608,903	$ 0
Evolent Health LLC
Business Acquisition [Line Items]
Goodwill	608,903
Intangible assets	169,000
Cash and restricted cash	21,930
Other assets	49,239
Remeasurement gain on previously held equity interest	(414,133)
Liabilities and deferred revenue	(71,299)
Non-controlling interests	(332,793)
Carrying value of previously held equity interest	(30,847)
Purchase price	$ 0

Transactions - Secondary Offeri

Transactions - Secondary Offering (Details) shares in Thousands	Jun. 05, 2015$ / sharesshares	Sep. 30, 2016$ / sharesshares	Dec. 31, 2015$ / sharesshares	Dec. 31, 2014shares	Dec. 31, 2016	Sep. 29, 2016	Mar. 31, 2016$ / shares	Sep. 30, 2015$ / shares
Organization [Line Items]
Share price (in dollars per share) | $ / shares			$ 14.73				$ 10.33	$ 19.51
Evolent Health LLC
Organization [Line Items]
Parent's ownership percentage	70.30%	74.60%	70.30%		77.40%	71.00%
Voting interest percentage by parent			1		1
Class A
Organization [Line Items]
Issuance of common stock, shares		8,600
Common Stock | Class A
Organization [Line Items]
Issuance of common stock, shares	13,200		13,225	272
Share price (in dollars per share) | $ / shares	$ 17	$ 22.50
Common Stock | Class A | Investor Stockholders
Organization [Line Items]
Issuance of common stock, shares		2,200
Common Stock | Class A | Evolent Health, Selling Stockholders
Organization [Line Items]
Issuance of common stock, shares		6,400

Transactions - Pro Forma Inform

Transactions - Pro Forma Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Adjustment for removal of transaction costs		$ 1,200
Revenue	$ 361,944	311,639	$ 95,888
Net income (loss)	(225,091)	(93,906)	307,162
Net income (loss) attributable to non-controlling interests	(57,433)	(28,684)	(29,470)
Net income (loss) attributable to Evolent Health, Inc.	$ (167,658)	$ (65,222)	$ 336,632
Net income (loss) available to common shareholders, basic (in dollars per share)	$ (3.30)	$ (1.50)	$ 13.33
Net income (loss) available to common shareholders, diluted (in dollars per share)	$ (3.30)	$ (1.50)	$ 6.73
Deferred revenue	$ 4,900
Fair Value Adjustment to Revenue
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenue		$ 4,800
Aldera Holdings, Inc.
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Adjustment for removal of transaction costs	200
Revenue	1,200
Net income (loss)	(1,800)
Valence Health Inc.
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Adjustment for removal of transaction costs	2,700
Adjustment for removal of contingent liability	2,600
Accelerated share-based compensation expense	3,900
Adjustment for removal of lease abandonment charge	6,500
Revenue	24,100
Net income (loss)	(18,100)
Passport
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Adjustment for removal of transaction costs	$ 300

Transactions - Vestica (Details

Transactions - Vestica (Details) - Vestica $ in Millions	Mar. 01, 2016USD ($)
Business Acquisition [Line Items]
Payments to acquire businesses	$ 7.5
Contingent consideration, liability	4
Customer relationships
Business Acquisition [Line Items]
Total consideration	$ 7.5
Useful life	13 years

Investments - Investment Summar

Investments - Investment Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	$ 44,341	$ 54,063
Gross Unrealized Gains	197	225
Gross Unrealized Losses	35	261
Fair Value	44,503	54,027
U.S. Treasury bills
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	28,119	28,306
Gross Unrealized Gains	116	115
Gross Unrealized Losses	27	181
Fair Value	28,208	28,240
Corporate bonds
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	16,222	25,757
Gross Unrealized Gains	81	110
Gross Unrealized Losses	8	80
Fair Value	$ 16,295	$ 25,787

Investments - Contractual Matur

Investments - Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Investments [Abstract]
Due in one year or less, Amortized Cost	$ 44,341	$ 9,445
Due in one year or less, Fair Value	44,503	9,451
Due after one year through five years, Amortized Cost	0	44,618
Due after one year through five years, Fair Value	0	44,576
Amortized cost	44,341	54,063
Fair Value	$ 44,503	$ 54,027

Investments - Unrealized Losses

Investments - Unrealized Losses (Details) - Level 2 $ in Thousands	Dec. 31, 2016USD ($)security	Dec. 31, 2015USD ($)security
Schedule of Held-to-maturity Securities [Line Items]
Unrealized loss for less than twelve months, Number of Securities | security	1	21
Unrealized loss for less than twelve months, Fair Value	$ 4,002	$ 49,914
Unrealized loss for less than twelve months, Unrealized Losses	$ 1	$ 261
U.S. Treasury bills
Schedule of Held-to-maturity Securities [Line Items]
Unrealized loss for less than twelve months, Number of Securities | security	1	7
Unrealized loss for less than twelve months, Fair Value	$ 4,002	$ 28,240
Unrealized loss for less than twelve months, Unrealized Losses	$ 1	$ 181
Corporate bonds
Schedule of Held-to-maturity Securities [Line Items]
Unrealized loss for less than twelve months, Number of Securities | security	0	14
Unrealized loss for less than twelve months, Fair Value	$ 0	$ 21,674
Unrealized loss for less than twelve months, Unrealized Losses	$ 0	$ 80

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jun. 04, 2015
Property and Equipment [Line Items]
Total property and equipment	$ 36,415,000	$ 14,029,000	$ 0
Accumulated depreciation and amortization expenses	(5,236,000)	(1,233,000)
Total property and equipment, net	31,179,000	12,796,000		$ 0
Depreciation expense	2,600,000	1,200,000	0
Capitalized computer software, amortization (2015 - less than)	1,400,000	100,000	0
Computer hardware
Property and Equipment [Line Items]
Total property and equipment	4,474,000	232,000
Furniture and equipment
Property and Equipment [Line Items]
Total property and equipment	2,448,000	1,604,000
Internal-use software development costs
Property and Equipment [Line Items]
Total property and equipment	21,385,000	6,363,000
Total property and equipment, net	19,900,000	6,300,000
Capitalized computer software additions	15,000,000	6,400,000	$ 0
Leasehold improvements
Property and Equipment [Line Items]
Total property and equipment	$ 8,108,000	$ 5,830,000

Goodwill and Intangible Asset59

Goodwill and Intangible Assets, Net (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Jun. 05, 2015
Finite-Lived Intangible Assets [Line Items]
Share price (in dollars per share)	$ 10.33		$ 14.73			$ 19.51
Goodwill		$ 626,569,000	$ 608,903,000	$ 0			$ 608,900,000
Goodwill impairment	$ 160,600,000	160,600,000	0	0
Goodwill acquired		178,266,000	608,903,000
Intangible assets, net		258,923,000	163,152,000				$ 169,000,000
Gross Carrying Amount		277,323,000	169,000,000
Accumulated Amortization		18,400,000	5,848,000
Amortization of intangible assets		12,500,000	5,800,000	$ 0
2,017		19,027,000
2,018		18,971,000
2,019		19,065,000
2,020		19,052,000
2,021		18,086,000
Thereafter		164,722,000
Total		$ 258,923,000	$ 163,152,000
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life		21 years 6 months	24 years 4 months 24 days
Gross Carrying Amount		$ 203,500,000	$ 120,000,000
Accumulated Amortization		9,018,000	2,797,000
Total		$ 194,482,000	$ 117,203,000
Corporate trade name
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life		18 years 5 months	19 years 4 months 24 days
Gross Carrying Amount		$ 19,000,000	$ 19,000,000
Accumulated Amortization		1,505,000	554,000
Total		$ 17,495,000	$ 18,446,000
Technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life		5 years 2 months 18 days	6 years 4 months 24 days
Gross Carrying Amount		$ 50,500,000	$ 30,000,000
Accumulated Amortization		7,753,000	2,497,000
Total		$ 42,747,000	$ 27,503,000
Below market lease, net
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life		9 years 4 months 20 days
Gross Carrying Amount		$ 4,323,000
Accumulated Amortization		124,000
Total		$ 4,199,000
Vestica
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 108,300,000
Minimum
Finite-Lived Intangible Assets [Line Items]
Share price (in dollars per share)	$ 8.48
Maximum
Finite-Lived Intangible Assets [Line Items]
Share price (in dollars per share)	$ 12.32
Common Stock | Class A
Finite-Lived Intangible Assets [Line Items]
Share price (in dollars per share)					$ 22.50		$ 17

Goodwill and Intangible Asset60

Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Roll Forward]
Goodwill	$ 608,903	$ 608,903	$ 0
Goodwill Acquired		178,266	608,903
Goodwill Impairment (current and cumulative)	$ (160,600)	(160,600)	0	$ 0
Goodwill		$ 626,569	$ 608,903	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) shares in Millions	Nov. 01, 2016	Oct. 03, 2016USD ($)	Jun. 05, 2015USD ($)	Oct. 31, 2016customer	Sep. 30, 2016shares	Dec. 31, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Restricted Cash and Cash Equivalents Items [Line Items]
Number of customers provided risk adjustment services | customer				1
Percent of tax savings to be paid						85.00%	85.00%
Rent expense							$ 5,900,000	$ 2,300,000	$ 0
Restricted funds						$ 40,416,000	40,416,000	6,285,000
Remaining lease payments						56,785,000	56,785,000
Offering expenses			$ 3,200,000			1,600,000	0	1,361,000	0
Restricted cash and restricted investments						1,050,000	1,050,000	1,582,000
Cash and cash equivalents						134,563,000	134,563,000	145,726,000	$ 0	$ 0
Financial Standby Letter of Credit
Restricted Cash and Cash Equivalents Items [Line Items]
Guarantor obligations value						$ 5,000,000	$ 5,000,000
Senior Notes | Convertible Senior Notes due 2021
Restricted Cash and Cash Equivalents Items [Line Items]
Interest rate						2.00%	2.00%
Arlington, Virginia Office
Restricted Cash and Cash Equivalents Items [Line Items]
Remaining lease term										4 years
Contractual obligation						$ 13,800,000	$ 13,800,000
Lisle, Illinois Office
Restricted Cash and Cash Equivalents Items [Line Items]
Remaining lease term	8 years 6 months
Contractual obligation						4,000,000	4,000,000
Chicago, Illinois Office
Restricted Cash and Cash Equivalents Items [Line Items]
Remaining lease term		11 years
Contractual obligation						30,200,000	30,200,000
Sublease term		11 years
Estimated sublease value						10,100,000	$ 10,100,000
540 W. Madison Street, Suite 1400
Restricted Cash and Cash Equivalents Items [Line Items]
Remaining lease term							11 years
Remaining lease payments		$ 20,800,000
Estimated sublease value		$ 13,500,000
Letters of credit for facility leases
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted funds						4,852,000	$ 4,852,000	$ 3,710,000
Minimum
Restricted Cash and Cash Equivalents Items [Line Items]
Letters of credit outstanding						4,900,000	4,900,000
Minimum | Arlington, Virginia Office
Restricted Cash and Cash Equivalents Items [Line Items]
Letters of credit outstanding						1,600,000	1,600,000
Minimum | Lisle, Illinois Office
Restricted Cash and Cash Equivalents Items [Line Items]
Letters of credit outstanding						500,000	500,000
Minimum | Chicago, Illinois Office
Restricted Cash and Cash Equivalents Items [Line Items]
Letters of credit outstanding						$ 1,500,000	$ 1,500,000
Class A Common Stock
Restricted Cash and Cash Equivalents Items [Line Items]
Issuance of common stock, shares | shares					8.6
Lease Commitments | 540 W. Madison Street, Suite 1400
Restricted Cash and Cash Equivalents Items [Line Items]
Discount rate		5.00%

Commitments and Contingencies C

Commitments and Contingencies Commitments and Contingencies - Lease Abandonment Liability (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Liabilities Subject to Compromise, Period Increase (Decrease) [Roll Forward]
Accrual at December 31, 2015	$ 0
Abandonment expense	6,460
Abandonment amortization	(360)
Accrual at December 31, 2016	$ 6,100

Commitments and Contingencies63

Commitments and Contingencies - Future Minimum Rental Commitments/Receivables (Details) $ in Thousands	Dec. 31, 2016USD ($)
Future Minimum Rental Commitments
2,017	$ 8,883
2,018	8,694
2,019	7,014
2,020	6,964
2,021	2,851
Thereafter	22,379
Total	56,785
Future Minimum Rental Payments Receivable
2,017	1,754
2,018	1,501
2,019	815
2,020	809
2,021	556
Thereafter	6,551
Total	$ 11,986

Commitments and Contingencies64

Commitments and Contingencies - Purchase Obligations (Details) $ in Thousands	Dec. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase obligations related to vendor contracts, Less Than 1 Year	$ 2,276
Purchase obligations related to vendor contracts, 1 to 3 Years	393
Purchase obligations related to vendor contracts, 3 to 5 years	0
Purchase obligations related to vendor contracts, More Than 5 Years	0
Purchase obligations related to vendor contracts	$ 2,669

Commitments and Contingencies65

Commitments and Contingencies - Concentration Risk (Details) - amendment	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Customer A | Customer Concentration Risk | Revenues
Concentration Risk [Line Items]
Concentration risk	19.60%
Customer B | Accounts Receivable | Customer Receivable
Concentration Risk [Line Items]
Concentration risk		12.90%
Customer B | Customer Concentration Risk | Revenues
Concentration Risk [Line Items]
Concentration risk	14.50%	15.60%
Customer C | Customer Concentration Risk | Revenues
Concentration Risk [Line Items]
Concentration risk	12.70%	11.20%
Customer D
Concentration Risk [Line Items]
Number of contract amendments		2
Ownership interest, noncontrolling interest		2.20%
Customer D | Accounts Receivable | Customer Receivable
Concentration Risk [Line Items]
Concentration risk		23.20%
Customer D | Customer Concentration Risk | Revenues
Concentration Risk [Line Items]
Concentration risk		19.60%
Customer E | Customer Concentration Risk | Revenues
Concentration Risk [Line Items]
Concentration risk		14.10%
Customer F | Accounts Receivable | Customer Receivable
Concentration Risk [Line Items]
Concentration risk		28.10%
Customer F | Customer Concentration Risk | Revenues
Concentration Risk [Line Items]
Concentration risk		11.80%
Customer G | Accounts Receivable | Customer Receivable
Concentration Risk [Line Items]
Concentration risk		11.40%
Customer H | Accounts Receivable | Customer Receivable
Concentration Risk [Line Items]
Concentration risk	14.30%

Earnings (Loss) Per Common Sh66

Earnings (Loss) Per Common Share - Computation of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Class of Stock [Line Items]
Net income (loss)	$ (25,193)	$ (15,775)	$ (11,999)	$ (173,811)	$ (8,267)	$ (17,088)	$ 356,488	$ (11,319)	$ (226,778)	$ 319,814	$ (25,246)
Less:
Net income (loss) attributable to non-controlling interests	$ (7,786)	$ (4,567)	$ (3,612)	$ (51,071)	$ (4,148)	$ (5,108)	$ (3,424)	$ 0	(67,036)	(12,680)	0
Undeclared cumulative preferred dividends									0	2,184	5,141
Redemption of preferred stock at amount in excess of carrying value									0	0	750
Net income (loss) available for common shareholders - Basic									(159,742)	330,310	(31,137)
Add:
Net income (loss) attributable to non-controlling interests									0	(12,680)	0
Undeclared cumulative preferred dividends converted during the period									0	2,184	0
Net income (loss) available for common shareholders - Diluted									$ (159,742)	$ 319,814	$ (31,137)
Weighted-average common shares outstanding - Basic (in shares)									45,031,000	25,129,000	2,314,000
Assumed conversion of convertible preferred stock at beginning-of-period (in shares)									0	9,397,000	0
Assumed conversion of Class B common shares to Class A common shares (in shares)									0	10,083,000	0
Weighted-average common shares outstanding - Diluted (in shares)									45,031,000	46,136,000	2,314,000
Earnings (Loss) per Common Share
Basic (in dollars per share)	$ (0.33)	$ (0.26)	$ (0.20)	$ (2.91)	$ (0.10)	$ (0.29)	$ 25.69	$ (4.22)	$ (3.55)	$ 13.14	$ (13.46)
Diluted (in dollars per share)	$ (0.33)	$ (0.26)	$ (0.20)	$ (2.91)	$ (0.10)	$ (0.29)	$ 9.73	$ (4.22)	$ (3.55)	$ 6.93	$ (13.46)
Class A
Earnings (Loss) per Common Share
Convertible preferred stock, shares issued upon conversion	1								1
Restricted Stock and Restricted Stock Units
Add:
Dilutive effect of share-based payment arrangements (in shares)									0	17,000	0
Stock options
Add:
Dilutive effect of share-based payment arrangements (in shares)									0	1,510,000	0

Earnings (Loss) Per Common Sh67

Earnings (Loss) Per Common Share - Antidilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities excluded from the calculation of earning per share (in shares)	19,469	0	23,014
Exchangeable Class B common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities excluded from the calculation of earning per share (in shares)	16,882	0	0
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities excluded from the calculation of earning per share (in shares)	0	0	22,222
Restricted Stock and Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities excluded from the calculation of earning per share (in shares)	245	0	792
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities excluded from the calculation of earning per share (in shares)	1,973	0	0
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities excluded from the calculation of earning per share (in shares)	369	0	0

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	May 01, 2015	Sep. 23, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options issued (in shares)	6,005,345	5,689,928
Vesting period	4 years
Expiration period	10 years
Fair value of options vested	$ 12.4	$ 11.1	$ 2.3
Intrinsic value of options exercised (less than $1.0 million - 2014)	$ 3.8	$ 0.5	$ 0.1
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Vesting percentage	25.00%
Expiration period	10 years
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service period for vesting	1 year
Restricted stock | One year
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	25.00%
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs and shares of restricted stock issued (in shares)	618,281	333,354
Vesting percentage	25.00%
Requisite service period for vesting	4 years
2011 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options issued (in shares)	4,900,000	5,100,000
2011 Plan | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs and shares of restricted stock issued (in shares)		3,775,240
2011 Plan | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized					9,141,268
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options issued (in shares)	1,656,085	673,778
2015 Plan | RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs and shares of restricted stock issued (in shares)	725,974	333,354
2015 Plan | Class A Common Stock | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized				6,000,000

Stock-based Compensation - Comp

Stock-based Compensation - Compensation Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 22,501,000	$ 14,730,000
Stock-based compensation capitalized as software development costs (less than $0.1 million 2015 and 2014)	0	100,000	$ 100,000
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	2,670,000	1,144,000
Selling, general and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	19,831,000	13,586,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	15,647,000	8,913,000
Performance-based stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	374,000	0
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	0	4,875,000
Accelerated share-based compensation expense		4,900,000
RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	2,583,000	942,000
Acceleration of unvested equity awards
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 3,897,000	$ 0

Stock-based Compensation - Unre

Stock-based Compensation - Unrecognized Compensation Expense (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Unrecognized compensation, Total	$ 30,919
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Unrecognized compensation, Stock options	$ 23,168
Weighted Average Period	1 year 5 months 17 days
Performance-based stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Unrecognized compensation, Stock options	$ 1,415
Weighted Average Period	3 years 2 months 2 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Unrecognized compensation, Restricted stock units	$ 6,336
Weighted Average Period	2 years 5 months 21 days

Stock-based Compensation - Fair

Stock-based Compensation - Fair Value Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted-average fair value per option granted (in dollars per share)	$ 4.69	$ 10.41	$ 7.48
Assumptions:
Expected life	6 years 3 months	6 years 3 months	6 years 3 months
Expected volatility	45.00%	45.00%	35.00%
Risk-free interest rate, minimum	1.30%	1.40%	1.80%
Risk-free interest rate, maximum	1.50%	1.80%	2.00%
Dividend yield	0.00%	0.00%	0.00%

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Shares
Outstanding at the beginning of the period (in shares)	5,689,928
Granted (in shares)	905,241
Exercised (in shares)	(220,722)
Forfeited (in shares)	(369,102)
Outstanding at the end of the period (in shares)	6,005,345	5,689,928
Vested and expected to vest at the end of the period (in shares)	6,005,345
Exercisable at the end of the period (in shares)	2,629,035
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 6.03
Granted (in dollars per share)	10.42
Exercised (in dollars per share)	5.70
Forfeited (in dollars per share)	10.32
Outstanding at the end of the period (in dollars per share)	6.44	$ 6.03
Vested and expected to vest at the end of the period (in dollars per share)	6.44
Exercisable at the end of the period (in dollars per share)	$ 6.78
Weighted-Average Remaining Contractual Term
Outstanding	7 years 9 months 30 days	8 years 7 months 18 days
Vested and expected to vest	7 years 9 months 30 days
Exercisable	7 years 7 months 14 days
Aggregate Intrinsic Value
Outstanding	$ 50,193	$ 34,589
Vested and expected to vest	50,193
Exercisable	$ 26,944

Stock-based Compensation - Perf

Stock-based Compensation - Performance-based Stock Option Awards (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility		45.00%	45.00%	35.00%
Expected life		6 years 3 months	6 years 3 months	6 years 3 months
Dividend yield		0.00%	0.00%	0.00%
Weighted-average fair value per option granted (in dollars per share)		$ 4.69	$ 10.41	$ 7.48
Shares
Outstanding at the beginning of the period (in shares)		5,689,928
Granted (in shares)		905,241
Outstanding at the end of the period (in shares)		6,005,345	5,689,928
Vested and expected to vest at the end of the period (in shares)		6,005,345
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)		$ 6.03
Granted (in dollars per share)		10.42
Outstanding at the end of the period (in dollars per share)		6.44	$ 6.03
Vested and expected to vest at the end of the period (in dollars per share)		$ 6.44
Weighted-Average Remaining Contractual Term
Outstanding		7 years 9 months 30 days	8 years 7 months 18 days
Vested and expected to vest		7 years 9 months 30 days
Aggregate Intrinsic Value
Outstanding		$ 50,193	$ 34,589
Vested and expected to vest		$ 50,193
Performance-based stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate	1.83%
Expected volatility	65.00%
Expected life	10 years
Dividend yield	0.00%
Weighted-average fair value per option granted (in dollars per share)	$ 6.68
Shares
Outstanding at the beginning of the period (in shares)		0
Granted (in shares)	300,000	267,770
Outstanding at the end of the period (in shares)		267,770	0
Vested and expected to vest at the end of the period (in shares)		267,770
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)		$ 0
Granted (in dollars per share)		10,270
Outstanding at the end of the period (in dollars per share)		10,270	$ 0
Vested and expected to vest at the end of the period (in dollars per share)		$ 10.27
Weighted-Average Remaining Contractual Term
Outstanding		9 years 2 months 2 days
Vested and expected to vest		9 years 2 months 2 days
Aggregate Intrinsic Value
Outstanding		$ 1,213
Vested and expected to vest		$ 1,213
Performance-based stock options | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Performance-based stock options | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Performance-based stock options | Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Performance-based stock options | Vest on March 1, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%
Performance-based stock options | Vest on March 1, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%
Performance-based stock options | Class A Common Stock | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, share price threshold (in dollars per share)	$ 13.35
Performance-based stock options | Class A Common Stock | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, share price threshold (in dollars per share)	16.43
Performance-based stock options | Class A Common Stock | Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, share price threshold (in dollars per share)	$ 19.51

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock and Restricted Stock Units (Details) - RSUs - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares
Outstanding at the beginning of the period (in shares)	333,354
Granted (in shares)	473,944
Forfeited (in shares)	(81,324)
Vested (in shares)	(107,693)	0	0
Outstanding at the end of the period (in shares)	618,281	333,354
Weighted-Average Grant-Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 16.84
Granted (in dollars per share)	11.60
Forfeited (in dollars per share)	15.19
Vested (in dollars per share)	16.68
Outstanding at the end of the period (in dollars per share)	$ 13.07	$ 16.84
Aggregate Intrinsic value, vested	$ 1.8

Income Taxes - Income Tax Expen

Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current
Federal	$ 0	$ 15,000
State and local	0	0
Total current tax expense	0	15,000
Deferred
Federal	(9,708,000)	7,092,000
State and local	(1,138,000)	1,166,000
Total deferred tax expense	(10,846,000)	8,258,000
Change in valuation allowance	91,000	15,202,000
Total tax expense	$ (10,755,000)	$ 23,475,000	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Contingency [Line Items]
Provision (benefit) for income taxes	$ (10,755,000)	$ 23,475,000	$ 0
Effective rate	4.50%	6.80%	0.00%
Net operating loss carryforwards	$ 155,700,000
Tax receivable agreement, percent of cash savings paid to shareholders	85.00%
Tax receivable agreement, percent of cash savings not paid to shareholders	15.00%
Periods Prior to June 2015
Income Tax Contingency [Line Items]
Net operating loss carryforwards	$ 79,300,000

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Statutory Rate to Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
U.S. statutory tax rate	35.00%	35.00%	35.00%
U.S. state income taxes, net of U.S. federal tax benefit	4.00%	4.90%	4.00%
Change in valuation allowance	(0.10%)	4.40%	(26.50%)
Remeasurement gain	0.00%	(40.10%)	0.00%
Non-deductible stock-based compensation expense	0.00%	1.00%	(11.00%)
Goodwill impairment	(18.70%)	0.00%	0.00%
Gain on contribution	(5.00%)	0.00%	0.00%
Non-controlling interest	(11.00%)	1.40%	(0.00%)
Other, net	0.30%	0.20%	(1.50%)
Effective rate	4.50%	6.80%	0.00%

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Assets
Start-up and organizational costs	$ 321	$ 362
Internally developed software costs	7,137	8,085
Net operating loss carryforwards	60,076	39,717
Other	509	521
Subtotal	68,043	48,685
Valuation allowance	(26,376)	(19,974)
Total deferred tax assets	41,667	28,711
Deferred Tax Liabilities
Equity-method investment	62,513	50,029
Total deferred tax liabilities	62,513	50,029
Net deferred tax assets (liabilities)	$ (20,846)	$ (21,318)

Income Taxes - Change in Valuat

Income Taxes - Change in Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning-of-year	$ 26,376	$ 19,974	$ 6,914	$ 98
Charged to costs and expenses	91	15,202	6,816
Charged to other accounts	6,311	(2,142)	0
Balance at end-of-year	26,376	19,974	$ 6,914
Charged to additional paid-in capital	$ 6,300	$ (2,100)

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($)	7 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Employer discretionary contribution amount	$ 2,400,000	$ 4,300,000	$ 0

Investments In and Advances t81

Investments In and Advances to Affiliates (Details) - USD ($) $ in Thousands	3 Months Ended	5 Months Ended	12 Months Ended
	Jun. 30, 2016	Jun. 03, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Proportionate share of income (losses)			$ (841)	$ (28,165)	$ (25,246)
Income (loss) services agreement			$ 200
Georgia Physicians for Accountable Care, LLC
Schedule of Equity Method Investments [Line Items]
Aggregate cost	$ 3,000
Economic interest percentage	27.00%		26.00%
Ownership interest	28.00%		28.00%
Proportionate share of income (losses)			$ (800)
Evolent Health LLC
Schedule of Equity Method Investments [Line Items]
Proportionate share of income (losses)		$ (28,200)			(25,200)
Amortization of basis differential		$ 800			$ 2,000
Class B | Georgia Physicians for Accountable Care, LLC
Schedule of Equity Method Investments [Line Items]
Number of shares acquired	21,429

Investments In and Advances t82

Investments In and Advances to Affiliates - Summarized Financial Information (Details) - Evolent Health LLC - USD ($) $ in Thousands	5 Months Ended	12 Months Ended
	Jun. 03, 2015	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Total revenue	$ 61,814	$ 100,888
Cost of revenue (exclusive of depreciation and amortization)	44,839	73,122
Gross profit	16,975	27,766
Operating income (loss)	(44,119)	(52,449)
Net income (loss)	$ (44,079)	$ (52,263)

Non-controlling Interests (Deta

Non-controlling Interests (Details) $ / shares in Units, shares in Thousands, $ in Thousands	Jun. 05, 2015$ / sharesshares	Sep. 30, 2016$ / sharesshares	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)$ / shares	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)$ / shares	Dec. 31, 2015USD ($)$ / shares	Sep. 30, 2015USD ($)$ / shares	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2016USD ($)shares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)shares	Nov. 01, 2016	Oct. 02, 2016	Sep. 29, 2016	Feb. 01, 2016	Jan. 31, 2016
Noncontrolling Interest [Line Items]
Share price (in dollars per share) | $ / shares						$ 10.33	$ 14.73	$ 19.51				$ 14.73
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Non-controlling interests as of beginning-of-year						$ 285,238					$ 285,238
Cumulative-effect adjustment from adoption of new accounting principle											0
Decrease in non-controlling interests as a result of the exchange of Class B common stock for Class A common stock as part of the Secondary Offering											(28,220)	$ 0	$ 0
Reclassification of non-controlling interests											0
Net income (loss) subsequent to the Offering Reorganization attributable to non-controlling interests			$ (7,786)	$ (4,567)	$ (3,612)	(51,071)	$ (4,148)	$ (5,108)	$ (3,424)	$ 0	(67,036)	(12,680)	0
Non-controlling interests as of end-of-year			$ 209,588				$ 285,238				$ 209,588	$ 285,238
Passport
Noncontrolling Interest [Line Items]
Parent's ownership percentage																	70.80%	70.30%
Valence Health and Aldera
Noncontrolling Interest [Line Items]
Parent's ownership percentage														77.40%	74.60%
Evolent Health LLC
Noncontrolling Interest [Line Items]
Parent's ownership percentage	70.30%	74.60%	77.40%	74.60%			70.30%				77.40%	70.30%				71.00%
Voting interest percentage by parent			1				1				1	1
Non-controlling Interests
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Non-controlling interests as of beginning-of-year						$ 285,238				$ 0	$ 285,238	$ 0
Cumulative-effect adjustment from adoption of new accounting principle											(139)	0
Estimated fair value of non-controlling interests as a result of the Offering Reorganization											0	332,793
Decrease in non-controlling interests as a result of the merger of the TPG affiliate with and into Evolent Health, Inc.											0	(34,875)
Decrease in non-controlling interests as a result of the exchange of Class B common stock for Class A common stock as part of the Secondary Offering											(28,220)	0
Reclassification of non-controlling interests											19,745	0
Net income (loss) subsequent to the Offering Reorganization attributable to non-controlling interests											(67,036)	(12,680)
Non-controlling interests as of end-of-year			$ 209,588				$ 285,238				$ 209,588	$ 285,238	$ 0
Class A
Noncontrolling Interest [Line Items]
Issuance of common stock, shares | shares		8,600
Class A | Common Stock
Noncontrolling Interest [Line Items]
Issuance of common stock, shares | shares	13,200											13,225	272
Business combination, shares | shares	2,100										8,451	2,051
Share price (in dollars per share) | $ / shares	$ 17	$ 22.50		$ 22.50
Class A | Common Stock | Investor Stockholders
Noncontrolling Interest [Line Items]
Issuance of common stock, shares | shares		2,200
Class A | Common Stock | Evolent Health, Selling Stockholders
Noncontrolling Interest [Line Items]
Issuance of common stock, shares | shares		6,400

Fair Value Measurement - Assets

Fair Value Measurement - Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Thousands	Feb. 01, 2016	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Risk-adjusted recurring revenue compound annual growth rate, number of years		5 years
Passport
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Contingent consideration, liability	$ 7,800	$ 8,300
Risk-adjusted recurring revenue compound annual growth rate, number of years	5 years
Fair Value, Measurements, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents		1,128	$ 122,328
Level 1 | Fair Value, Measurements, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents		1,128	122,328
Contingent consideration, liability		0
Level 2 | Fair Value, Measurements, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents		0	0
Contingent consideration, liability		0
Level 3 | Fair Value, Measurements, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents		0	$ 0
Contingent consideration, liability		$ 8,300

Fair Value Measurement - Change

Fair Value Measurement - Changes in Contingent Consideration and Other (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance as of beginning of year	$ 0
Additions	10,386
Settlements	0
Realized and unrealized (gains) losses, net	(2,086)
Balance as of end of year	$ 8,300

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Oct. 03, 2016	Feb. 01, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
(Gain) loss on change in fair value of contingent consideration	$ (2,086)	$ 0	$ 0
Realized and unrealized (gains) losses, net	(2,086)
Convertible Senior Notes due 2021 | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Face amount	125,000
Valence Health Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration arrangements fair value				$ 2,600
Passport
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
(Gain) loss on change in fair value of contingent consideration	500
Contingent consideration, liability	$ 8,300				$ 7,800

Fair Value Measurement - Valuat

Fair Value Measurement - Valuation Techniques and Significant Unobservable Inputs (Details) - USD ($) $ in Thousands	12 Months Ended	48 Months Ended
	Dec. 31, 2016	Dec. 31, 2021
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Risk-adjusted recurring revenue compound annual growth rate, number of years	5 years
Fair value inputs, theoretical recurring revenue	$ 1,000
Contingent Consideration Liability | Real Options Approach Valuation Technique
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration	$ 8,300
Level 3 | Contingent Consideration Liability | Real Options Approach Valuation Technique
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Risk-adjusted recurring revenue CAGR	97.00%
Level 3 | Contingent Consideration Liability | Real Options Approach Valuation Technique | Scenario, Forecast
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Risk-adjusted recurring revenue CAGR		50.80%
Level 3 | Contingent Consideration Liability | Real Options Approach Valuation Technique | Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount rate/time value	2.50%
Level 3 | Contingent Consideration Liability | Real Options Approach Valuation Technique | Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount rate/time value	4.50%

Long-term Debt (Details)

Long-term Debt (Details) - Senior Notes - Convertible Senior Notes due 2021 $ / shares in Units, shares in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2016USD ($)shares$ / shares	Dec. 31, 2016USD ($)$ / shares
Debt Instrument [Line Items]
Face amount	$ 125,000,000	$ 125,000,000
Interest rate	2.00%	2.00%
Proceeds from issuance of debt	$ 120,200,000
Debt issuance costs	$ 4,800,000	$ 4,800,000
Repurchase price due to fundamental change as percentage of principal amount	100.00%
Interest expense		200,000
Amortization of deferred financing costs (less than)		$ 100,000
Debt conversion denominator shares per principal amount	$ 1,000
Class A | Common Stock
Debt Instrument [Line Items]
Initial conversion rate	0.0416082
Conversion price (in dollars per share) | $ / shares	$ 24.03	$ 24.03
Initial conversion amount (in shares) | shares	5.2

Long-term Debt - Convertible Se

Long-term Debt - Convertible Senior Notes Carrying Value and Interest Expense (Details) - Senior Notes - Convertible Senior Notes due 2021 $ in Thousands	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Carrying value	$ 120,283
Unamortized discount	4,717
Principal amount	$ 125,000
Remaining amortization period	4 years 10 months 25 days

Related Parties (Details)

Related Parties (Details) - partner	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Number of partners holding equity interest		1
Georgia Physicians for Accountable Care, LLC
Related Party Transaction [Line Items]
Economic interest percentage	27.00%	26.00%

Quarterly Results of Operatio91

Quarterly Results of Operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Data [Abstract]
Total revenue	$ 88,011	$ 60,210	$ 56,518	$ 49,449	$ 46,058	$ 40,406	$ 10,414	$ 0	$ 254,188	$ 96,878	$ 0
Total operating expenses	121,884	76,049	69,147	224,527	60,245	57,652	21,953	0	491,607	139,850	0
Net income (loss)	(25,193)	(15,775)	(11,999)	(173,811)	(8,267)	(17,088)	356,488	(11,319)	(226,778)	319,814	(25,246)
Net income (loss) attributable to non-controlling interests	(7,786)	(4,567)	(3,612)	(51,071)	(4,148)	(5,108)	(3,424)	0	(67,036)	(12,680)	0
Net income (loss)	$ (17,407)	$ (11,208)	$ (8,387)	$ (122,740)	$ (4,119)	$ (11,980)	$ 359,912	$ (11,319)	$ (159,742)	$ 332,494	$ (25,246)
Earnings (Loss) per Common Share
Basic (in dollars per share)	$ (0.33)	$ (0.26)	$ (0.20)	$ (2.91)	$ (0.10)	$ (0.29)	$ 25.69	$ (4.22)	$ (3.55)	$ 13.14	$ (13.46)
Diluted (in dollars per share)	$ (0.33)	$ (0.26)	$ (0.20)	$ (2.91)	$ (0.10)	$ (0.29)	$ 9.73	$ (4.22)	$ (3.55)	$ 6.93	$ (13.46)

Quarterly Results of Operatio92

Quarterly Results of Operations (unaudited) - Additional Information (Details) - USD ($) $ in Thousands	Jun. 05, 2015	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 01, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings (accumulated deficit)		$ 146,617				$ 306,688				$ 146,617	$ 306,688
Net income (loss)		$ (25,193)	$ (15,775)	$ (11,999)	$ (173,811)	$ (8,267)	$ (17,088)	$ 356,488	$ (11,319)	(226,778)	319,814	$ (25,246)
Goodwill impairment					160,600					160,600	$ 0	$ 0
Evolent Health LLC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remeasurement gain on previously held equity interest	$ 414,133
Valence Health Inc.
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accelerated share-based compensation expense										3,900
Gain (loss) from lease abandonment										$ (6,500)
ASU 2016-09 | Election to Recognize Share-based Award Forfeitures As They Occur
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings (accumulated deficit)													$ (500)
Net income (loss)					$ 100