Star Equity (STRR) 10-Q 1 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 27, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	DIGIRAD CORP
Entity Central Index Key	707,388
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		19,569,640

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Services	$ 24,666	$ 12,179	$ 48,671	$ 22,742
Product and product-related	7,424	3,368	14,576	6,645
Total revenues	32,090	15,547	63,247	29,387
Cost of revenues:
Services	19,179	9,213	37,685	17,719
Product and product-related	3,146	1,567	6,732	3,253
Total cost of revenues	22,325	10,780	44,417	20,972
Gross profit	9,765	4,767	18,830	8,415
Operating expenses:
Marketing and sales	2,837	1,268	5,462	2,478
General and administrative	4,878	2,203	11,292	4,371
Amortization of intangible assets	578	133	1,157	238
Total operating expenses	8,293	3,604	17,911	7,087
Income from operations	1,472	1,163	919	1,328
Other (expense) income, net
Other Nonoperating Income (Expense)	(58)	0	14	0
Interest expense, net	(379)	(1)	(750)	(1)
Total other expense	(437)	(1)	(736)	(1)
Income before income taxes	1,035	1,162	183	1,327
Income tax (expense) benefit	(37)	(65)	12,424	515
Net income	$ 998	$ 1,097	$ 12,607	$ 1,842
Net income per share - basic (in dollars per share)	$ 0.05	$ 0.06	$ 0.65	$ 0.10
Net income per share - diluted (in dollars per share	$ 0.05	$ 0.06	$ 0.63	$ 0.09
Weighted average shares outstanding – basic	19,529	19,263	19,489	19,036
Weighted average shares outstanding – diluted	20,038	19,726	19,991	19,511
Dividends declared per common share (in dollars per share)	$ 0.05	$ 0.05	$ 0.10	$ 0.10
Other comprehensive income:
Unrealized (loss) gain on marketable securities	$ (23)	$ (1)	$ (23)	$ 13
Total other comprehensive (loss) income	(23)	(1)	(23)	13
Comprehensive income	$ 975	$ 1,096	$ 12,584	$ 1,855

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 3,284	$ 15,868
Securities available-for-sale	2,259	3,227
Accounts receivable, net	14,067	7,274
Inventories, net	5,806	4,381
Restricted cash	233	233
Other current assets	3,441	764
Total current assets	29,090	31,747
Property and equipment, net	32,019	6,252
Intangible assets, net	12,783	3,079
Goodwill	6,819	2,897
Deferred tax assets	26,804	18,578
Restricted cash	1,892	0
Other assets	1,131	1,560
Total assets	110,538	64,113
Liabilities and stockholders’ equity
Accounts payable	5,480	1,369
Accrued compensation	4,875	2,453
Accrued warranty	195	213
Deferred revenue	3,583	1,673
Current portion of long-term debt	5,358	0
Other current liabilities	4,418	2,998
Total current liabilities	23,909	8,706
Long-term debt, net of current portion	19,240	0
Other liabilities	2,038	1,252
Total liabilities	45,187	9,958
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.0001 par value: 10,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.0001 par value: 80,000,000 shares authorized; 19,567,617 and 19,416,070 shares issued and outstanding (net of treasury shares) at June 30, 2016 and December 31, 2015, respectively	2	2
Treasury stock, at cost; 2,588,484 shares at June 30, 2016 and December 31, 2015	(5,728)	(5,728)
Additional paid-in capital	152,472	153,860
Accumulated other comprehensive loss	(263)	(240)
Accumulated deficit	(81,132)	(93,739)
Total stockholders’ equity	65,351	54,155
Total liabilities and stockholders’ equity	$ 110,538	$ 64,113

CONDENSED CONSOLIDATED BALANCE4

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	19,567,617	19,416,070
Common stock, shares outstanding	19,567,617	19,416,070
Treasury stock, shares	2,588,484	2,588,484

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net income	$ 12,607	$ 1,842
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	3,691	848
Amortization of intangible assets	1,157	238
Provision for bad debt	423	99
Stock-based compensation	480	285
Amortization of debt discount	150	0
Amortization of loan fees	38	0
(Gain) loss on sale of assets	(33)	10
Amortization of premiums on investments	22	68
Deferred income taxes	(11,806)	0
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(529)	(950)
Inventories	(1,061)	(362)
Other assets	(77)	198
Accounts payable	(669)	1,180
Accrued compensation	(187)	(999)
Deferred revenue	124	(31)
Other liabilities	(531)	(424)
Change in restricted cash	0	244
Net cash provided by operating activities	3,799	2,246
Investing activities
Purchases of property and equipment	(2,959)	(879)
Proceeds from sale of property and equipment	156	17
Maturities of securities available-for-sale	956	1,100
Cash paid for acquisitions, net of cash acquired	(25,482)	3
Net cash (used in) provided by investing activities	(27,329)	241
Financing activities
Proceeds from long-term borrowings	33,257	0
Repayment of long-term debt	(17,731)	0
Change in restricted cash	(1,792)	0
Loan issuance costs	(504)	0
Dividends paid	(1,948)	(1,894)
Issuances of common stock	176	432
Taxes paid related to net share settlement of equity awards	(97)	0
Cash paid for contingent consideration for acquisitions	(27)	0
Repayment of obligations under capital leases	(388)	(190)
Net cash provided by (used in) financing activities	10,946	(1,652)
Net (decrease) increase in cash and cash equivalents	(12,584)	835
Cash and cash equivalents at beginning of period	15,868	14,051
Cash and cash equivalents at end of period	3,284
Non-Cash Investing Activities
Assets acquired by entering into capital leases	269	724
Issuance of common stock for acquisition	$ 0	$ 2,684

The Company

The Company	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	The Company Digirad delivers convenient, effective, and efficient healthcare solutions on an as needed, when needed, and where needed basis. Digirad's diverse portfolio of mobile healthcare solutions and medical equipment and services, including diagnostic imaging and patient monitoring, provides hospitals, physician practices, and imaging centers throughout the United States access to technology and services necessary to provide exceptional patient care in the rapidly changing healthcare environment. On January 1, 2016, we acquired Project Rendezvous Holding Corporation, the holding company of DMS Health Technologies. DMS Health Technologies (“DMS Health”) offers mobile diagnostic imaging across multiple imaging modalities, including Positron Emission Tomography (“PET”), Computed Tomography (“CT”), Magnetic Resonance Imaging (“MRI”) as well as other imaging and healthcare services. These services are provided to regional and rural hospitals and institutions throughout the United States. In addition, DMS Health, through an exclusive relationship with Philips Healthcare, sells and services Philips' imaging and patient monitoring equipment within a defined region of the upper Midwest region of the United States. With the acquisition of DMS Health, we now operate the Company in four reportable segments: 1. Diagnostic Services 2. Diagnostic Imaging 3. Mobile Healthcare 4. Medical Device Sales and Service These four reportable segments are collectively referred to herein as the “Company.” See Note 11 to the unaudited condensed consolidated financial statements for more information related to the Company's segments. The accompanying condensed consolidated financial statements include the operations of all reportable segments. Intercompany accounts and transactions are accounted for at cost and have been eliminated in consolidation. All our long-lived assets are located in the United States and substantially all of our revenues arise from sales in the United States. Basis of Presentation The unaudited condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with the U.S. Securities and Exchange Commission ("SEC") instructions for Quarterly Reports on Form 10-Q. Accordingly, the condensed consolidated financial statements are unaudited and do not contain all the information required by U.S. generally accepted accounting principles ("GAAP") to be included in a full set of financial statements. The unaudited condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for a complete set of financial statements. The audited consolidated financial statements for our fiscal year ended December 31, 2015 , filed with the SEC on Form 10-K on March 1, 2016, include a summary of our significant accounting policies and should be read in conjunction with this Form 10-Q. In the opinion of management, all material adjustments necessary to present fairly the results of operations, cash flows, and balance sheets for such periods have been included in this Form 10-Q. All such adjustments are of a normal recurring nature. The results of operations for interim periods are not necessarily indicative of the results of operations for the entire year. Preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from management’s estimates. The financial results for the three and six months ended June 30, 2016 include the financial results of DMS Health. See Note 3 to the unaudited condensed consolidated financial statements for more information related to the acquisition of DMS Health. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued new guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. This guidance will be effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted beginning for periods after December 15, 2018. We are currently evaluating the impact of the guidance on our financial statements. In March 2016, the FASB amended the existing accounting standards for how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016. This guidance will be applied either prospectively, retrospectively, or using a modified retrospective transition method, depending on the area covered in this update. Early adoption is permitted. We are currently evaluating the alternative transition methods and the potential effects of the adoption of this guidance on our financial statements. In February 2016, the FASB amended the existing accounting standards for the accounting for leases. The amendments are based on the principle that assets and liabilities arising from leases should be recognized within the financial statements. The Company is required to adopt the amendments beginning in 2019. Early adoption is permitted. The amendments must be applied using a modified retrospective transition approach and the FASB decided not to permit a full retrospective transition approach. We are currently evaluating the impact these amendments will have on our consolidated financial statements. In January 2016, the FASB amended the existing accounting standards for the accounting for financial instruments. The amendments require equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income. The new standard is effective prospectively for fiscal years beginning after December 15, 2017. We are currently evaluating the impact, if any, of adopting this guidance on our financial statements. In September 2015, the FASB issued guidance which eliminates the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The new standard is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. We have adopted the guidance during our first quarter of fiscal 2016, which had no impact on our consolidated financial statements, and we will apply the new guidance to future adjustments to provisional amounts. In July 2015, the FASB issued guidance that amends the guidelines for the measurement of inventory from lower of cost or market to the lower of cost and net realizable value ("NRV"). NRV is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Under existing standards, inventory is measured at lower of cost or market, which requires the consideration of replacement cost, NRV, and NRV less an amount that approximates a normal profit margin. This ASU eliminates the requirement to determine and consider replacement cost or NRV less an approximately normal profit margin for inventory measurement. The new standard is effective prospectively for fiscal years beginning after December 15, 2016. We are currently evaluating the impact, if any, of adopting this guidance on our financial statements. In April 2015, the FASB issued guidance that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. The update requires retrospective application and represents a change in accounting principle. The guidance does not specifically address requirements for the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. In August 2015, the FASB issued guidance clarifying that debt issuance costs related to line-of-credit arrangements could be presented as an asset and amortized over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The standard is effective for annual periods beginning after December 15, 2015, including interim periods within those fiscal years. We have adopted this guidance in the first quarter of 2016 for the presentation of our debt issuance costs incurred in connection with our new credit facility entered into during the quarter (See Note 8). In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers which supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The guidance allows for either full retrospective or modified retrospective adoption and is currently scheduled to become effective for us in the first quarter of 2018. We are currently evaluating the alternative transition methods and the potential effects of the adoption of this guidance on our financial statements.

Basic and Diluted Net Income Pe

Basic and Diluted Net Income Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share, Basic and Diluted [Abstract]
Basic and Diluted Net Income Per Share	Basic and Diluted Net Income Per Share For the three and six months ended June 30, 2016 and 2015 , basic net income per common share is computed by dividing net income by the weighted average number of common shares and vested restricted stock units outstanding during the period. Diluted net income per common share is calculated to give effect to all dilutive securities, if applicable, using the treasury stock method. The following table sets forth the reconciliation of shares used to compute basic and diluted net income per share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (shares in thousands) 2016 2015 2016 2015 Weighted average shares outstanding - basic 19,529 19,263 19,489 19,036 Dilutive potential common stock outstanding: Stock options 421 445 425 459 Restricted stock units 88 18 77 16 Weighted average shares outstanding - diluted 20,038 19,726 19,991 19,511 The following weighted average outstanding common stock equivalents were not included in the calculation of diluted net income per share because their effect was anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, (shares in thousands) 2016 2015 2016 2015 Stock options 15 2 15 2 Restricted stock units — — — — Total 15 2 15 2

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
Acquisitions	Acquisitions DMS Health Technologies (2016) On January 1, 2016, pursuant to the Stock Purchase Agreement, dated as of October 13, 2015 and as amended on December 31, 2015 (the “Purchase Agreement”), we completed the acquisition of all issued and outstanding stock of Project Rendezvous Holding Corporation ("PRHC"), the ultimate parent company of DMS Health Technologies (collectively referred to hereinafter as "DMS Health Technologies" or "DMS Health"). DMS Health Technologies offers mobile diagnostic imaging across multiple imaging modalities as well as other imaging and healthcare services. These services are provided to regional and rural hospitals and institutions throughout the United States. In addition, DMS Health, through an exclusive relationship with Philips Healthcare, sells and services Philips' imaging and patient monitoring equipment within a defined region of the upper Midwest region of the United States. With the addition of DMS Health, we added two new reportable segments to Digirad: Mobile Healthcare and Medical Device Sales and Service. The preliminary aggregate purchase price paid at closing was approximately $32.9 million , which included adjustments for pre-existing debt, cash and preliminary working capital adjustments. In June 2016, we agreed on the final working capital adjustment as outlined in the Purchase Agreement. As a result of the settlement, we received proceeds of $0.6 million which was recorded as a reduction to goodwill. The adjusted preliminary purchase price after settlement of the working capital adjustment was $32.3 million as of June 30, 2016 , which consisted of the following: (in thousands) Cash paid to DMS Health stockholders $ 31,368 Cash paid in settlement of share-based compensation awards 1,556 Working capital settlement (600 ) Total purchase price 32,324 Less: cash and cash equivalents acquired (6,842 ) Total purchase price, net of cash acquired $ 25,482 Under the terms of the Purchase Agreement, the Company paid $1.6 million to settle DMS Health's pre-existing employee stock award plan which included a provision for the acceleration of vesting of awards under certain circumstances in connection with a change in control. The amount paid was associated with pre-combination services and included as a component of the purchase price reflected in the table above. The acquisition was funded with a combination of cash-on-hand and the financing made available under the credit facility with Wells Fargo Bank, National Association as further described in Note 8 of the unaudited condensed consolidated financial statements. At closing, we also paid $ 9.4 million for long-term debt outstanding on DMS Health's balance sheet, which was recognized separately from the business combination and presented as a financing activity in the statement of cash flows for the six months ended June 30, 2016 . During the six months ended June 30, 2016 and 2015, we incurred transaction and integration related costs of $ 1.6 million and $0.3 million , respectively, and $3.0 million cumulative to date. These costs are classified as general and administrative expenses in the unaudited condensed consolidated statements of comprehensive income. The acquisition was accounted for under the acquisition method of accounting for business combinations. The allocations of the purchase price below represent the estimated fair values of assets acquired and liabilities assumed, based upon the information available as of June 30, 2016 . These estimates could be adjusted during the measurement period of up to twelve months based on further information regarding events or circumstances which existed at the acquisition date. Such changes could be significant. The following table summarizes the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed on the closing date: (in thousands) As originally reported Measurement period adjustments As adjusted Cash and cash equivalents $ 6,842 $ 6,842 Accounts receivable 6,686 6,686 Inventories 324 324 Income taxes receivable 2,062 2,062 Other current and non-current assets 706 706 Property and equipment 26,199 (200 ) 25,999 Intangible assets 10,862 10,862 Goodwill 4,307 (385 ) 3,922 Accounts payable (4,514 ) (4,514 ) Accrued expenses (2,946 ) (2,946 ) Payable to former stockholders (1) (2,062 ) (2,062 ) Deferred revenue (1,677 ) (1,677 ) Debt (9,350 ) (9,350 ) Income taxes payable, noncurrent (949 ) (949 ) Deferred tax liabilities, noncurrent (3,566 ) (15 ) (3,581 ) Total net assets acquired $ 32,924 $ (600 ) $ 32,324 (1) Includes amounts payable to former PRHC stockholders related to tax refund receivables under the terms of the Purchase Agreement. In addition to the working capital settlement adjustment of $0.6 million recorded as a reduction to goodwill during the three months ended June 30, 2016 , the Company has adjusted amounts related to the valuation of property and equipment that was recognized at the acquisition date to reflect new information about the facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Such adjustments resulted in a net decrease of $0.2 million in property and equipment. Depreciation expense for the three months ended June 30, 2016 was decreased by less than $0.1 million to reflect the effect on earnings as a result of the change to the provisional amounts recognized. Intangible assets are recorded at estimated fair value, as determined by management based on available information which includes a preliminary valuation prepared by an independent third party. The fair values assigned to identifiable intangible assets were determined through the use of the income approach. The major assumptions used in arriving at the estimated identifiable intangible asset values included management’s preliminary estimates of future cash flows, discounted at an appropriate rate of return as well as projected customer attrition rates. The useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows. The following table summarizes the fair value of acquired identifiable intangible assets as of the acquisition date: (in thousands) Weighted Average Useful Lives (in years) Fair Value Philips Contract 3.3 $ 2,165 Trademarks 6.0 3,823 Customer relationships 10.0 4,874 Total intangible assets acquired, excluding goodwill 7.3 $ 10,862 The goodwill arising from the acquisition relates to the synergies and economies of scale expected from combining the operations of Digirad and DMS Health. The goodwill will be allocated to our Mobile Healthcare and Medical Device Sales and Service segments upon finalization of the purchase price allocation and will not be deductible for federal and state tax reporting purposes. DMS Health's operating results were included in the Company's consolidated results of operations beginning on January 1, 2016. Revenues and operating income for the six months ended June 30, 2016 include revenues and operating income attributable to DMS Health of $31.8 million and $1.3 million , respectively. The following table represents the unaudited pro forma consolidated results of operations for the three and six months ended June 30, 2016 and 2015 as if the acquisition of DMS Health operations had occurred as of January 1, 2015. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2016 2015 2016 2015 Revenues $ 32,090 $ 32,290 $ 63,247 $ 63,483 Net income $ 748 $ 1,239 $ 1,118 $ 2,034 Net income per share: Basic $ 0.04 $ 0.07 $ 0.06 $ 0.11 Diluted $ 0.04 $ 0.06 $ 0.06 $ 0.10 The pro forma information has been adjusted to eliminate acquisition-related costs of $ 1.6 million and $0.3 million , respectively, during the six months ended June 30, 2016 and 2015. The income tax benefit of $12.5 million related to the release of valuation allowance as a result of the acquisition (See Note 10) has also been excluded to give effect to pro forma results that are expected to have a continuing impact on the combined results. The pro forma information for the three and six months ended June 30, 2015 also include primarily adjustments for depreciation related to the fair value of property and equipment acquired, amortization expense related to acquired intangibles, and additional interest expense associated with the Company's financing arrangements relating to this acquisition. The pro forma supplemental information is for informational purposes only, and is not necessarily indicative of what the combined company’s results actually would have been had the acquisition been completed as of the beginning of the periods as indicated. In addition, the pro forma supplemental information does not purport to project the future results of the combined company. MD Office Solutions (2015) On March 5, 2015, we entered into an Agreement of Merger and Plan of Reorganization (the "Merger Agreement") to acquire MD Office Solutions ("MD Office"). MD Office is a provider of in-office nuclear cardiology imaging in the northern and central California regions. The acquisition expands the geographical region in which we are able to provide our in-office nuclear cardiology imaging services. Total consideration related to the Merger Agreement paid to the sellers was 610,000 shares of common stock of Digirad Corporation, with a total value at closing of $2.7 million . The Company issued new shares for the consideration. In addition, there is an earn-out opportunity of up to $0.4 million in cash over approximately three years based on the MD Office business meeting certain earnings before interest, taxes, depreciation, and amortization ("EBITDA") milestones. The sellers will receive fifty percent of the EBITDA generated by the MD Office business in excess of the EBITDA milestone amounts, which are $0.7 million for each of the annual periods ending December 31, 2015, 2016, and 2017, with the target for 2015 being prorated based on the close date. At June 30, 2016 , we have estimated the fair value of the contingent earn-out opportunity to be $0.1 million . The earn-out opportunity is estimated based on the expected performance of the business over the period from the acquisition date through December 31, 2017, utilizing an income approach. It is reasonably possible that our estimate of the earn-out potential could change in the near term. Any adjustment in the estimated earn-out opportunity until settled will be recorded as a gain or loss to current operations in the period the estimate changes. The below tables display estimated pro forma results for the three and six months ended June 30, 2015 had the business acquisition been completed as of January 1, 2014. In deriving the pro forma results, we utilized the historical operating results of MD Office and adjusted for the impact of the purchase accounting and transaction costs as if the acquisition occurred on January 1, 2014. (in thousands) Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Revenues $ 15,547 $ 29,953 Net income $ 1,150 $ 2,045 Included within our consolidated operating results for the three and six months ended June 30, 2015 are MD Office operations for the period March 6, 2015 through June 30, 2015 as follows: (in thousands) Three Months Ended June 30, 2015 Six Months Ended Revenues $ 765 $ 981 Net income (loss) $ 41 $ (78 ) Included within the results for MD Office for the six months ended June 30, 2015 is approximately $0.2 million of transaction costs related to the acquisition. These costs are classified as general and administrative expenses in the consolidated statements of comprehensive income.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Our inventories are stated at the lower of cost (first-in, first-out) or market (net realizable value) and we review inventory balances for excess and obsolete inventory levels on a quarterly basis. The components of inventory are as follows: (in thousands) June 30, December 31, Inventories: Raw materials $ 2,621 $ 2,600 Work-in-process 1,662 1,649 Finished goods 1,967 851 Total inventories 6,250 5,100 Less reserve for excess and obsolete inventories (444 ) (719 ) Total inventories, net $ 5,806 $ 4,381

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consists of the following: (in thousands) June 30, December 31, 2015 Property and equipment: Land $ 1,170 $ — Buildings and leasehold improvements 2,935 583 Machinery and equipment 48,306 25,254 Computer hardware and software 4,636 3,555 Total property and equipment 57,047 29,392 Less accumulated depreciation (25,028 ) (23,140 ) Total property and equipment, net $ 32,019 $ 6,252

Intangibles and Goodwill

Intangibles and Goodwill	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangibles and Goodwill	Intangibles and Goodwill Intangibles and goodwill consists of the following: June 30, 2016 (in thousands) Weighted Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net (1) Intangible assets with infinite useful lives: Goodwill (2) Infinite $ 6,819 $ — $ 6,819 Intangible assets with finite useful lives: Customer relationships (2) 9.5 $ 10,363 $ (3,689 ) $ 6,674 Trademarks (2) 6.3 4,610 (521 ) 4,089 Distribution agreement (2) 3.3 2,165 (329 ) 1,836 Patents 15.0 141 (128 ) 13 Covenants not to compete 5.0 251 (80 ) 171 Total intangible assets, net $ 17,530 $ (4,747 ) $ 12,783 December 31, 2015 Weighted Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net (1) Intangible assets with infinite useful lives: Goodwill Infinite $ 2,897 $ — $ 2,897 Intangible assets with finite useful lives: Customer relationships 8.2 $ 5,489 $ (3,259 ) $ 2,230 Trademarks 8.0 787 (150 ) 637 Patents 14.6 141 (125 ) 16 Covenants not to compete 5.0 251 (55 ) 196 Total intangible assets, net $ 6,668 $ (3,589 ) $ 3,079 (1) Amortization expense for intangible assets, net was $1.2 million for the six months ended June 30, 2016 and $0.2 million for the six months ended June 30, 2015. Estimated amortization expense for intangible assets for the remainder of 2016 is $1.2 million , for 2017 is $2.3 million , for 2018 is $2.2 million , for 2019 is $1.8 million , for 2020 is $1.5 million , for 2021 is $1.5 million , and thereafter is $2.3 million . (2) As a result of our acquisition of DMS Health Technologies on January 1, 2016, we recorded certain intangible assets (See Note 3).

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Financial Instruments	Financial Instruments Assets and Liabilities Measured at Fair Value on a Recurring Basis. The following table presents information about our financial assets and liabilities that are measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques we utilize to determine such fair value at June 30, 2016 and December 31, 2015 . Fair Value as of June 30, 2016 (in thousands) Level 1 Level 2 Level 3 Total Assets: Corporate debt securities $ — $ 2,259 $ — $ 2,259 Equity securities — 458 — 458 Total $ — $ 2,717 $ — $ 2,717 Liabilities: Acquisition related contingent consideration $ — $ — $ 145 $ 145 Fair Value as of December 31, 2015 (in thousands) Level 1 Level 2 Level 3 Total Assets: Corporate debt securities $ — $ 3,227 $ — $ 3,227 Equity securities — 491 — 491 Total $ — $ 3,718 $ — $ 3,718 Liabilities: Acquisition related contingent consideration $ — $ — $ 175 $ 175 The fair value of our corporate debt securities is determined using proprietary valuation models and analytical tools. These valuation models and analytical tools use market pricing or prices for similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, and/or offers. We did not reclassify any investments between levels in the fair value hierarchy during the six months ended June 30, 2016 . Equity securities consist of shares of Perma-Fix Medical S.A. ("Perma-Fix Medical") a publicly traded company listed on the NewConnect market of the Warsaw Stock Exchange. Fair value of the Perma-Fix Medical investment is based on the closing price observed on June 30, 2016 . The acquisition related contingent consideration is related to our acquisition of Telerhythmics on March 13, 2014 and acquisition of MD Office on March 5, 2015 (See Note 3). We reassess the fair value of the contingent consideration to be settled in cash related to our acquisitions of Telerhythmics and MD Office on a quarterly basis using the income approach, which is a Level 3 measurement. Significant assumptions used in the measurement include probabilities of achieving the EBITDA milestones. Changes in estimated fair value of contingent consideration liabilities (Level 3 measurement) from December 31, 2015 to June 30, 2016 are as follows (in thousands): Telerhythmics Contingent Consideration MD Office Solutions Contingent Consideration Total Contingent Consideration Balance at December 31, 2015 $ 22 $ 153 $ 175 Contingent consideration payments — (27 ) (27 ) Change in estimated fair value (17 ) 14 (3 ) Balance at June 30, 2016 $ 5 $ 140 $ 145 The fair values of the Company's term loans and revolving credit facility approximate carrying value due to the variable rate nature of these instruments. Securities Available-for-Sale Securities available-for-sale primarily consist of investment grade corporate debt securities. In addition, we own shares of common stock issued by Perma-Fix Medical, a publicly traded company on the NewConnect market of the Warsaw Stock Exchange. We classify all debt securities as available-for-sale and as current assets, as the sale of such securities may be required prior to maturity to execute management strategies. The Perma-Fix Medical equity securities are classified as an other asset (non-current), as the investment is strategic in nature and our current intent is to hold the investment over a several year period. Securities available-for-sale are carried at fair value, with the unrealized gains and losses reported as a component of accumulated other comprehensive loss in stockholders' equity until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis. A decline in the market value of any available-for-sale security below cost that is determined to be other than temporary will result in an impairment charge to earnings and a new cost basis for the security is established. No such impairment charges were recorded for any period presented. It is not more likely than not that we will be required to sell investments before recovery of their amortized costs. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the straight-line method and included in interest income. Interest income is recognized when earned. Realized gains and losses on investments in securities are included in other income (expense) within the condensed consolidated statements of comprehensive income. The realized gains and losses on these sales were minimal for the three and six months ended June 30, 2016 and 2015 . The following table sets forth the composition of securities available-for-sale as of June 30, 2016 and December 31, 2015 . Maturity in Years Cost Unrealized Fair Value As of June 30, 2016 (in thousands) Gains Losses Corporate debt securities Less than 1 year $ 2,259 $ — $ — $ 2,259 Corporate debt securities 1-3 years — — — — Equity securities - 721 — (263 ) 458 $ 2,980 $ — $ (263 ) $ 2,717 Maturity in Years Cost Unrealized Fair Value As of December 31, 2015 (in thousands) Gains Losses Corporate debt securities Less than 1 year $ 2,311 $ — $ (5 ) $ 2,306 Corporate debt securities 1-3 years 926 — (5 ) 921 Equity securities - 721 — (230 ) 491 $ 3,958 $ — $ (240 ) $ 3,718

Debt

Debt	6 Months Ended
	Jun. 30, 2016
Debt [Abstract]
Debt	Debt On January 1, 2016, the Company entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, and the subsidiaries of the Company, and the lenders party thereto (the “Lenders”), with Wells Fargo Bank, National Association (“Wells Fargo”) as administrative agent. The Credit Agreement is a five-year credit facility, maturing on January 1, 2021, with a maximum credit amount of $40.0 million (the “Credit Facility”). It consisted of a term loan of $20.0 million (“Term Loan A”), a second term loan of $7.5 million (“Term Loan B”), and a revolving credit facility with a maximum commitment of $12.5 million (the “Revolver”). Commitments under Term Loan A and the Revolver are subject to underlying eligible assets of the Company. In the case of the Term Loan A, underlying property, plant and equipment, and in the case of the Revolver, eligible accounts receivable and inventory, all as defined in the Credit Agreement. As of June 30, 2016 , we had $5.9 million available under our revolving credit facility. At the Company’s option, the Credit Facility will bear interest at a floating rate of either (i) the LIBOR Rate, as defined in the Credit Agreement, plus an applicable margin depending on the borrowing type as follows: 2.5% for Term Loan A; 5.0% for Term Loan B; and 2.0% for the Revolver; or (ii) the Base Rate, as defined in the Credit Agreement, plus an applicable margin depending on the borrowing type as follows: 1.5% for Term Loan A; 4.0% for Term Loan B; and 1.0% for the Revolver. As further defined in the Credit Agreement, “Base Rate” means the greatest of (a) the Federal Funds Rate (as defined in the Credit Agreement) plus 0.5% , (b) the LIBOR Rate (which rate will be calculated based upon an interest period of one month and will be determined on a daily basis), plus 1.0% , and (c) the rate of interest announced, from time to time, within Wells Fargo at its principal office in San Francisco as its “prime rate.” In addition to interest on outstanding borrowings under the Credit Facility, the Revolver bears an unused line fee of 0.25% , which is presented as interest expense. At June 30, 2016 , the total outstanding borrowings on the Credit Agreement, net of associated deferred financing costs, was as follows: June 30, 2016 Interest Rate at June 30, 2016 Term A $ 18,810 2.96% Term B 6,457 5.46% Revolver 9 2.46% Total borrowing 25,276 Less: net unamortized debt issuance cost (678 ) Less: current portion (5,358 ) Long-term portion $ 19,240 Total interest expense associated with the Credit Facility for the six months ended June 30, 2016 was $0.7 million . The Credit Agreement contains certain representations, warranties, events of default, mandatory prepayment requirements, as well as certain affirmative and negative covenants customary for Credit Agreements of this type. These covenants include restrictions on borrowings, investments, and divestitures, as well as limitations on the Company’s ability to make certain restricted payments, including payment of dividends. These restrictions do not prevent or prohibit the payment of dividends by the Company consistent with past practice, subject to satisfaction of certain conditions. Further, the Credit Agreement requires the Company to maintain certain restricted cash, cash equivalents, and securities available-for-sale balances, at various decreasing levels through January 1, 2018, as cash collateral under the agreement. As of June 30, 2016 , the Company was required to maintain $ 4.0 million as cash collateral, consisting of $ 1.8 million which has been classified as long-term restricted cash and $2.2 million as available for-sale securities in the accompanying unaudited condensed consolidated balance sheets. The Company is permitted to make voluntary prepayments on amounts borrowed under the Credit Agreement at any time, in whole or in part, without penalty unless in connection with the full repayment of all amounts owed under the Credit Agreement. In the event that the Company fully repays all obligations and terminates the Credit Agreement prior to January 1, 2017, the Company shall be required to pay a prepayment penalty in the amount equal to 1.0% times the maximum credit amount of the Credit Agreement. After January 2, 2017, the Company shall not be required to pay a prepayment penalty. Furthermore, the Company shall be required to prepay amounts borrowed under the Credit Agreement in the event that the Company receives cash flows in excess of specified percentages upon the occurrence of certain events, such as the sale or disposition of assets or other property, legal judgments or settlements, sale of equity, and other payments received not in the ordinary course of business. Upon the occurrence and during the continuation of an event of default under the Credit Agreement, the Lenders may, among other things, declare the loans and all other obligations under the Credit Agreement immediately due and payable and increase the interest rate at which loans and obligations under the Credit Agreement bear interest. If an event of default occurs related to the insolvency or bankruptcy of the Company, the loans and all other obligations under the Credit Agreement shall automatically become due and payable. The Company was in compliance with all covenants as of June 30, 2016 . Pursuant to a separate Guaranty and Security Agreement dated January 1, 2016, between the Company, its subsidiaries and Wells Fargo, the Credit Facility is secured by a first-priority security interest on substantially all of the assets of the Company and its subsidiaries and a pledge of all shares and membership interests of the Company’s subsidiaries. Debt maturities. As of June 30, 2016 , maturities of long-term obligations for the next five years and thereafter are as follows: Debt Maturities July 1 - December 31, 2016 $ 2,679 2017 5,358 2018 5,358 2019 3,059 2020 2,856 January 1, 2021 5,966 Total $ 25,276

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases We currently lease facilities and certain automotive equipment under non-cancelable operating leases expiring from July 1, 2016 through November 30, 2021. Rent expense is recognized on a straight-line basis over the initial lease term and those renewal periods that are reasonably assured as determined at lease inception. The difference between rent expense and rent paid is recorded as deferred rent and is included in other liabilities. Rent expense was approximately $0.6 million for each of the six months ended June 30, 2016 and 2015. As of June 30, 2016 , we financed certain information technology and medical equipment and vehicles under capital leases. These obligations are secured by the specific equipment financed under each lease and will be repaid monthly over the remaining lease terms through July 31, 2020. The future minimum lease payments due under both non-cancelable operating leases and capital leases having initial or remaining lease terms in excess of one year as of June 30, 2016 are as follows (in thousands): Operating Capital Leases July 1 - December 31, 2016 $ 2,970 $ 403 2017 1,237 665 2018 979 308 2019 780 122 2020 588 29 2021 168 — Thereafter — — Total future minimum lease payments $ 6,722 1,527 Less amounts representing interest (89 ) Present value of obligations 1,438 Less: current capital lease obligation (713 ) Total long-terms capital lease obligations $ 725 Other matters. In the normal course of business, we have been, and will likely continue to be, subject to litigation or administrative proceedings incidental to our business, such as claims related to customer disputes, employment practices, wage and hour disputes, product liability, professional liability, commercial disputes, licensure restrictions or denials, and warranty or patent infringement. Responding to litigation or administrative proceedings, regardless of whether they have merit, can be expensive and disruptive to normal business operations. We are not able to predict the timing or outcome of these matters.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We provide for income taxes under the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the tax basis of assets or liabilities and their carrying amounts in the financial statements. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will expire before we are able to realize their benefit. We calculate the valuation allowance in accordance with the authoritative guidance relating to income taxes, which requires an assessment of both positive and negative evidence regarding the realizability of these deferred tax assets, when measuring the need for a valuation allowance. Significant judgment is required in determining any valuation allowance against deferred tax assets. Previously, as of December 31, 2015, we had established a valuation allowance against a portion of our deferred tax assets. The valuation allowance was provided against deferred tax assets that were projected to expire before being utilized. As a result of the acquisition of DMS Health Technologies on January 1, 2016 (See Note 3), the Company has determined that it is more likely than not that additional deferred tax assets will be realized due to the increases in the Company's forecasted taxable income. The Company projects to realize approximately $13.6 million of additional deferred tax assets as a result of forecasted future income and the reversal of existing deferred tax liabilities. Approximately $12.5 million of the valuation allowance release was recorded as a discrete income tax benefit in the three months ended March 31, 2016. The remaining $1.1 million of income tax benefit associated with the valuation allowance release will be recorded in 2016 ratably as income is generated throughout the year. The release of the valuation allowance will not affect the amount of cash paid for income taxes. We will continue to maintain a valuation allowance related to deferred tax assets that are projected to expire before being utilized. We will reassess the ability to realize the deferred tax assets on a quarterly basis. If it is more likely than not that we will not realize the recognized deferred tax assets, then all or a portion of the valuation allowance may need to be re-established, which would result in a charge to tax expense. Conversely if new events indicate that it is more likely than not that we will realize additional deferred tax assets, then all or a portion of the remaining valuation allowance may be released, which would result in a tax benefit. As of June 30, 2016 , we had unrecognized tax benefits of approximately $4.8 million related to uncertain tax positions. Included in the unrecognized tax benefits were $4.0 million of tax benefits that, if recognized, would reduce our annual effective tax rate, subject to the valuation allowance. We file income tax returns in the US and in various state jurisdictions with varying statutes of limitations. We are no longer subject to income tax examination by tax authorities for years prior to 2011; however, our net operating loss and research credit carryovers arising prior to that year are subject to adjustment. It is our policy to recognize interest expense and penalties related to uncertain income tax matters as a component of income tax expense.

Segments

Segments	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segments	Segments On January 1, 2016, we acquired DMS Health. With the acquisition of DMS Health, we now operate the Company in four reportable segments: 1. Diagnostic Services 2. Diagnostic Imaging 3. Mobile Healthcare 4. Medical Device Sales and Service Diagnostic Services. Through Diagnostic Services, we offer a convenient and economically efficient imaging and monitoring services program as an alternative to purchasing equipment or outsourcing the procedures to another physician or imaging center. For physicians who wish to perform nuclear imaging, echocardiography, vascular or general ultrasound tests, we provide the ability for them to engage our services, which includes the use of our imaging system, qualified personnel, and related items required to perform imaging in their own offices and bill Medicare, Medicaid, or one of the third-party healthcare insurers directly for those services. These services are primarily provided to smaller cardiology and related physician practice customers, though we do provide some services to hospital systems. Diagnostic Imaging. Through Diagnostic Imaging, we sell our internally developed solid-state gamma cameras and camera maintenance contracts. Our systems include nuclear cardiac imaging and general purposes nuclear imaging as well. We sell our imaging systems to physician offices and hospitals primarily in the United States, although we have sold a small number of imaging systems internationally. Mobile Healthcare. Through our Mobile Healthcare business unit, we provide outsourced diagnostic imaging, including PET, CT, MRI, and healthcare expertise to hospitals, integrated delivery networks (“IDNs”), and federal institutions on a long-term contract basis, but can also provide provisional services to institutions that are in transition. These services are provided primarily when there is a cost, ease and efficiency component of providing the services directly rather than owning and operating the related services and equipment directly by our customers. Medical Device Sales and Service. Through Medical Device Sales and Service, we provide outsourced sales and service efforts with our exclusive contract with Philips Healthcare within a defined region in the upper Midwest region of the United States. We primarily sell Philips branded imaging and patient monitoring systems, and collect a commission on these sales, though we never take title to the underlying equipment. We also warranty and service certain Philips equipment within this territory related to equipment we have sold or other equipment sold in the territory. Our reporting segments have been determined based on the nature of the products and/or services offered to customers or the nature of their function in the organization. We evaluate performance based on the gross profit and operating income (loss) by each segment. Beginning in the first quarter of 2016, the definition of our segment operating income excludes transaction and integration costs of DMS Health Technologies. Prior periods have been recast to retroactively reflect this change. The Company does not identify or allocate its assets by operating segments. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2016 2015 2016 2015 Revenue by segment: Diagnostic Services $ 12,469 $ 12,179 $ 24,481 $ 22,742 Diagnostic Imaging 3,418 3,368 7,000 6,645 Mobile Healthcare 12,197 — 24,190 — Medical Device Sales and Service 4,006 — 7,576 — Condensed consolidated revenue $ 32,090 $ 15,547 $ 63,247 $ 29,387 Gross profit by segment: Diagnostic Services $ 2,907 $ 2,966 $ 5,455 $ 5,023 Diagnostic Imaging 1,851 1,801 3,566 3,392 Mobile Healthcare 2,581 — 5,532 — Medical Device Sales and Service 2,426 — 4,277 — Condensed consolidated gross profit $ 9,765 $ 4,767 $ 18,830 $ 8,415 Income from operations by segment: Diagnostic Services $ 130 $ 593 $ (4 ) $ 72 Diagnostic Imaging 755 853 1,258 1,564 Mobile Healthcare (40 ) — 203 — Medical Device Sales and Service 798 — 1,083 — Segment income from operations 1,643 1,446 2,540 1,636 Unallocated Items (1) (171 ) (283 ) (1,621 ) (308 ) Condensed consolidated income from operations $ 1,472 $ 1,163 $ 919 $ 1,328 (1) Includes transaction and integration costs associated with the DMS Health acquisition.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 28, 2016, the Company announced a cash dividend of $0.05 per share payable on August 29, 2016 to shareholders of record on August 17, 2016.

Financial Instruments (Policies

Financial Instruments (Policies)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments, Policy	The fair value of our corporate debt securities is determined using proprietary valuation models and analytical tools. These valuation models and analytical tools use market pricing or prices for similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, and/or offers.
Securities Available-for-sale, Policy	Securities Available-for-Sale Securities available-for-sale primarily consist of investment grade corporate debt securities. In addition, we own shares of common stock issued by Perma-Fix Medical, a publicly traded company on the NewConnect market of the Warsaw Stock Exchange. We classify all debt securities as available-for-sale and as current assets, as the sale of such securities may be required prior to maturity to execute management strategies. The Perma-Fix Medical equity securities are classified as an other asset (non-current), as the investment is strategic in nature and our current intent is to hold the investment over a several year period. Securities available-for-sale are carried at fair value, with the unrealized gains and losses reported as a component of accumulated other comprehensive loss in stockholders' equity until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis. A decline in the market value of any available-for-sale security below cost that is determined to be other than temporary will result in an impairment charge to earnings and a new cost basis for the security is established. No such impairment charges were recorded for any period presented. It is not more likely than not that we will be required to sell investments before recovery of their amortized costs. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the straight-line method and included in interest income. Interest income is recognized when earned. Realized gains and losses on investments in securities are included in other income (expense) within the condensed consolidated statements of comprehensive income.

Basic and Diluted Net Income 19

Basic and Diluted Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share, Basic and Diluted [Abstract]
Schedule of Earnings (Loss) Per Share, Basic and Diluted	The following table sets forth the reconciliation of shares used to compute basic and diluted net income per share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (shares in thousands) 2016 2015 2016 2015 Weighted average shares outstanding - basic 19,529 19,263 19,489 19,036 Dilutive potential common stock outstanding: Stock options 421 445 425 459 Restricted stock units 88 18 77 16 Weighted average shares outstanding - diluted 20,038 19,726 19,991 19,511
Schedule of Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share	The following weighted average outstanding common stock equivalents were not included in the calculation of diluted net income per share because their effect was anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, (shares in thousands) 2016 2015 2016 2015 Stock options 15 2 15 2 Restricted stock units — — — — Total 15 2 15 2

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2016
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	The preliminary aggregate purchase price paid at closing was approximately $32.9 million , which included adjustments for pre-existing debt, cash and preliminary working capital adjustments. In June 2016, we agreed on the final working capital adjustment as outlined in the Purchase Agreement. As a result of the settlement, we received proceeds of $0.6 million which was recorded as a reduction to goodwill. The adjusted preliminary purchase price after settlement of the working capital adjustment was $32.3 million as of June 30, 2016 , which consisted of the following: (in thousands) Cash paid to DMS Health stockholders $ 31,368 Cash paid in settlement of share-based compensation awards 1,556 Working capital settlement (600 ) Total purchase price 32,324 Less: cash and cash equivalents acquired (6,842 ) Total purchase price, net of cash acquired $ 25,482
Schedule of Preliminary Allocation of Purchase Price	The following table summarizes the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed on the closing date: (in thousands) As originally reported Measurement period adjustments As adjusted Cash and cash equivalents $ 6,842 $ 6,842 Accounts receivable 6,686 6,686 Inventories 324 324 Income taxes receivable 2,062 2,062 Other current and non-current assets 706 706 Property and equipment 26,199 (200 ) 25,999 Intangible assets 10,862 10,862 Goodwill 4,307 (385 ) 3,922 Accounts payable (4,514 ) (4,514 ) Accrued expenses (2,946 ) (2,946 ) Payable to former stockholders (1) (2,062 ) (2,062 ) Deferred revenue (1,677 ) (1,677 ) Debt (9,350 ) (9,350 ) Income taxes payable, noncurrent (949 ) (949 ) Deferred tax liabilities, noncurrent (3,566 ) (15 ) (3,581 ) Total net assets acquired $ 32,924 $ (600 ) $ 32,324 (1) Includes amounts payable to former PRHC stockholders related to tax refund receivables under the terms of the Purchase Agreement.
DMS Health [Member]
Business Acquisition [Line Items]
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]	(in thousands) Weighted Average Useful Lives (in years) Fair Value Philips Contract 3.3 $ 2,165 Trademarks 6.0 3,823 Customer relationships 10.0 4,874 Total intangible assets acquired, excluding goodwill 7.3 $ 10,862
Schedule of Estimated Proforma Results	The following table represents the unaudited pro forma consolidated results of operations for the three and six months ended June 30, 2016 and 2015 as if the acquisition of DMS Health operations had occurred as of January 1, 2015. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2016 2015 2016 2015 Revenues $ 32,090 $ 32,290 $ 63,247 $ 63,483 Net income $ 748 $ 1,239 $ 1,118 $ 2,034 Net income per share: Basic $ 0.04 $ 0.07 $ 0.06 $ 0.11 Diluted $ 0.04 $ 0.06 $ 0.06 $ 0.10
MD Office [Member]
Business Acquisition [Line Items]
Schedule of Estimated Proforma Results	The below tables display estimated pro forma results for the three and six months ended June 30, 2015 had the business acquisition been completed as of January 1, 2014. In deriving the pro forma results, we utilized the historical operating results of MD Office and adjusted for the impact of the purchase accounting and transaction costs as if the acquisition occurred on January 1, 2014. (in thousands) Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Revenues $ 15,547 $ 29,953 Net income $ 1,150 $ 2,045
Consolidated Operating Results of Acquired Entity	Included within our consolidated operating results for the three and six months ended June 30, 2015 are MD Office operations for the period March 6, 2015 through June 30, 2015 as follows: (in thousands) Three Months Ended June 30, 2015 Six Months Ended Revenues $ 765 $ 981 Net income (loss) $ 41 $ (78 )

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	Our inventories are stated at the lower of cost (first-in, first-out) or market (net realizable value) and we review inventory balances for excess and obsolete inventory levels on a quarterly basis. The components of inventory are as follows: (in thousands) June 30, December 31, Inventories: Raw materials $ 2,621 $ 2,600 Work-in-process 1,662 1,649 Finished goods 1,967 851 Total inventories 6,250 5,100 Less reserve for excess and obsolete inventories (444 ) (719 ) Total inventories, net $ 5,806 $ 4,381

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consists of the following: (in thousands) June 30, December 31, 2015 Property and equipment: Land $ 1,170 $ — Buildings and leasehold improvements 2,935 583 Machinery and equipment 48,306 25,254 Computer hardware and software 4,636 3,555 Total property and equipment 57,047 29,392 Less accumulated depreciation (25,028 ) (23,140 ) Total property and equipment, net $ 32,019 $ 6,252

Intangibles and Goodwill (Table

Intangibles and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	Intangibles and goodwill consists of the following: June 30, 2016 (in thousands) Weighted Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net (1) Intangible assets with infinite useful lives: Goodwill (2) Infinite $ 6,819 $ — $ 6,819 Intangible assets with finite useful lives: Customer relationships (2) 9.5 $ 10,363 $ (3,689 ) $ 6,674 Trademarks (2) 6.3 4,610 (521 ) 4,089 Distribution agreement (2) 3.3 2,165 (329 ) 1,836 Patents 15.0 141 (128 ) 13 Covenants not to compete 5.0 251 (80 ) 171 Total intangible assets, net $ 17,530 $ (4,747 ) $ 12,783 December 31, 2015 Weighted Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net (1) Intangible assets with infinite useful lives: Goodwill Infinite $ 2,897 $ — $ 2,897 Intangible assets with finite useful lives: Customer relationships 8.2 $ 5,489 $ (3,259 ) $ 2,230 Trademarks 8.0 787 (150 ) 637 Patents 14.6 141 (125 ) 16 Covenants not to compete 5.0 251 (55 ) 196 Total intangible assets, net $ 6,668 $ (3,589 ) $ 3,079 (1) Amortization expense for intangible assets, net was $1.2 million for the six months ended June 30, 2016 and $0.2 million for the six months ended June 30, 2015. Estimated amortization expense for intangible assets for the remainder of 2016 is $1.2 million , for 2017 is $2.3 million , for 2018 is $2.2 million , for 2019 is $1.8 million , for 2020 is $1.5 million , for 2021 is $1.5 million , and thereafter is $2.3 million . (2) As a result of our acquisition of DMS Health Technologies on January 1, 2016, we recorded certain intangible assets (See Note 3).

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques	The following table presents information about our financial assets and liabilities that are measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques we utilize to determine such fair value at June 30, 2016 and December 31, 2015 . Fair Value as of June 30, 2016 (in thousands) Level 1 Level 2 Level 3 Total Assets: Corporate debt securities $ — $ 2,259 $ — $ 2,259 Equity securities — 458 — 458 Total $ — $ 2,717 $ — $ 2,717 Liabilities: Acquisition related contingent consideration $ — $ — $ 145 $ 145 Fair Value as of December 31, 2015 (in thousands) Level 1 Level 2 Level 3 Total Assets: Corporate debt securities $ — $ 3,227 $ — $ 3,227 Equity securities — 491 — 491 Total $ — $ 3,718 $ — $ 3,718 Liabilities: Acquisition related contingent consideration $ — $ — $ 175 $ 175
Available-for-sale Securities	The following table sets forth the composition of securities available-for-sale as of June 30, 2016 and December 31, 2015 . Maturity in Years Cost Unrealized Fair Value As of June 30, 2016 (in thousands) Gains Losses Corporate debt securities Less than 1 year $ 2,259 $ — $ — $ 2,259 Corporate debt securities 1-3 years — — — — Equity securities - 721 — (263 ) 458 $ 2,980 $ — $ (263 ) $ 2,717 Maturity in Years Cost Unrealized Fair Value As of December 31, 2015 (in thousands) Gains Losses Corporate debt securities Less than 1 year $ 2,311 $ — $ (5 ) $ 2,306 Corporate debt securities 1-3 years 926 — (5 ) 921 Equity securities - 721 — (230 ) 491 $ 3,958 $ — $ (240 ) $ 3,718

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2016
Debt [Abstract]
Long-term Debt, by Current and Noncurrent	At June 30, 2016 , the total outstanding borrowings on the Credit Agreement, net of associated deferred financing costs, was as follows: June 30, 2016 Interest Rate at June 30, 2016 Term A $ 18,810 2.96% Term B 6,457 5.46% Revolver 9 2.46% Total borrowing 25,276 Less: net unamortized debt issuance cost (678 ) Less: current portion (5,358 ) Long-term portion $ 19,240
Schedule of Maturities of Long-term Debt	As of June 30, 2016 , maturities of long-term obligations for the next five years and thereafter are as follows: Debt Maturities July 1 - December 31, 2016 $ 2,679 2017 5,358 2018 5,358 2019 3,059 2020 2,856 January 1, 2021 5,966 Total $ 25,276

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Property Subject to or Available for Operating Lease	The future minimum lease payments due under both non-cancelable operating leases and capital leases having initial or remaining lease terms in excess of one year as of June 30, 2016 are as follows (in thousands): Operating Capital Leases July 1 - December 31, 2016 $ 2,970 $ 403 2017 1,237 665 2018 979 308 2019 780 122 2020 588 29 2021 168 — Thereafter — — Total future minimum lease payments $ 6,722 1,527 Less amounts representing interest (89 ) Present value of obligations 1,438 Less: current capital lease obligation (713 ) Total long-terms capital lease obligations $ 725

Segments (Tables)

Segments (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2016 2015 2016 2015 Revenue by segment: Diagnostic Services $ 12,469 $ 12,179 $ 24,481 $ 22,742 Diagnostic Imaging 3,418 3,368 7,000 6,645 Mobile Healthcare 12,197 — 24,190 — Medical Device Sales and Service 4,006 — 7,576 — Condensed consolidated revenue $ 32,090 $ 15,547 $ 63,247 $ 29,387 Gross profit by segment: Diagnostic Services $ 2,907 $ 2,966 $ 5,455 $ 5,023 Diagnostic Imaging 1,851 1,801 3,566 3,392 Mobile Healthcare 2,581 — 5,532 — Medical Device Sales and Service 2,426 — 4,277 — Condensed consolidated gross profit $ 9,765 $ 4,767 $ 18,830 $ 8,415 Income from operations by segment: Diagnostic Services $ 130 $ 593 $ (4 ) $ 72 Diagnostic Imaging 755 853 1,258 1,564 Mobile Healthcare (40 ) — 203 — Medical Device Sales and Service 798 — 1,083 — Segment income from operations 1,643 1,446 2,540 1,636 Unallocated Items (1) (171 ) (283 ) (1,621 ) (308 ) Condensed consolidated income from operations $ 1,472 $ 1,163 $ 919 $ 1,328 (1) Includes transaction and integration costs associated with the DMS Health acquisition

The Company (Details)

The Company (Details)	6 Months Ended
	Jun. 30, 2016segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	4

Basic and Diluted Net Income 29

Basic and Diluted Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share, Basic and Diluted [Abstract]
Weighted average shares outstanding – basic	19,529	19,263	19,489	19,036
Dilutive potential common stock outstanding:
Stock options	421	445	425	459
Restricted stock units	88	18	77	16
Weighted average shares outstanding – diluted	20,038	19,726	19,991	19,511
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average outstanding securities excluded from computation of diluted net income (loss) per share	15	2	15	2
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average outstanding securities excluded from computation of diluted net income (loss) per share	15	2	15	2
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average outstanding securities excluded from computation of diluted net income (loss) per share	0	0	0	0

Acquisitions Schedule of Busine

Acquisitions Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 01, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Mar. 31, 2016
Business Acquisition [Line Items]
Services		$ 24,666	$ 12,179	$ 48,671	$ 22,742
Condensed consolidated revenue		32,090	15,547	63,247	29,387
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment				(200)
Goodwill		6,819		6,819		$ 2,897
Goodwill, Purchase Accounting Adjustments				(385)
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments Related to Previous Period				(600)
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities				(15)
Finite-lived Intangible Assets Acquired		12,783		12,783		$ 3,079
Income (loss) from operations		1,472	1,163	919	1,328
Deferred Income Tax Expense (Benefit)				(12,500)
Effect of Depreciation		100
DMS Health [Member]
Business Acquisition [Line Items]
Cash paid to DMS Health stockholders				31,368
Cash paid in settlement of share-based compensation awards				1,556
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred				(600)
Total purchase price	$ 32,900			32,324
Less: cash and cash equivalents acquired	(6,842)	(6,842)		(6,842)			$ (6,842)
Total purchase price, net of cash acquired				25,482
Condensed consolidated revenue				31,800
Business Combination, Acquisition Related Costs				1,600	300		3,000
Revenues		32,090	32,290	63,247	63,483
Accounts receivable, net		6,686		6,686			6,686
Inventories		324		324			324
Income taxes receivable		2,062		2,062			2,062
Other current and non-current assets		706		706			706
Property and equipment, net		25,999		25,999			26,199
Intangible assets		10,862		10,862			10,862
Goodwill		3,922		3,922			4,307
Accounts payable		(4,514)		(4,514)			(4,514)
Accrued expenses		(2,946)		(2,946)			(2,946)
Payable to former stockholders		(2,062)		(2,062)			(2,062)
Deferred revenue		(1,677)		(1,677)			(1,677)
Debt	$ (9,400)	(9,350)		(9,350)			(9,350)
Income taxes payable, noncurrent		(949)		(949)			(949)
Deferred tax liabilities, noncurrent		(3,581)		(3,581)			(3,566)
Total net assets acquired		32,324		$ 32,324			$ 32,924
Finite-Lived Intangible Asset, Useful Life				7 years 3 months 19 days
Finite-lived Intangible Assets Acquired		10,862		$ 10,862
Net income (loss)		$ 748	$ 1,239	$ 1,118	$ 2,034
Business Acquisition, Pro Forma Earnings Per Share, Basic		$ 0.04	$ 0.07	$ 0.06	$ 0.11
Business Acquisition, Pro Forma Earnings Per Share, Diluted		$ 0.04	$ 0.06	$ 0.06	$ 0.10
Income (loss) from operations				$ 1,300
Customer Contracts [Member] | DMS Health [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life				3 years 3 months 19 days
Finite-lived Intangible Assets Acquired		$ 2,165		$ 2,165
Trademarks [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life				6 years 3 months 19 days		7 years 11 months 19 days
Finite-lived Intangible Assets Acquired		4,089		$ 4,089		$ 637
Trademarks [Member] | DMS Health [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life				6 years
Finite-lived Intangible Assets Acquired		3,823		$ 3,823
Customer Relationships [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life				9 years 6 months		8 years 2 months 12 days
Finite-lived Intangible Assets Acquired		6,674		$ 6,674		$ 2,230
Customer Relationships [Member] | DMS Health [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life				10 years
Finite-lived Intangible Assets Acquired		$ 4,874		$ 4,874
MD Office [Member]
Business Acquisition [Line Items]
Services			$ 765		$ 981
Revenues			15,547		29,953
Net income (loss)			1,150		2,045
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest			$ 41		$ (78)

Acquisitions (Details)

Acquisitions (Details) - USD ($)	Mar. 05, 2015	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Business Acquisition, Contingent Consideration [Line Items]
Issuance of common stock for acquisition			$ 0	$ 2,684,000
Estimated fair value of contingent earn-out opportunity			145,000		$ 175,000
Finite-lived Intangible Assets Acquired			12,783,000		3,079,000
MD Office [Member]
Business Acquisition, Contingent Consideration [Line Items]
Stock Issued During Period, Shares, Acquisitions	610,000
Issuance of common stock for acquisition	$ 2,700,000
Aggregate earn-out opportunity	$ 400,000
Percentage of EBITDA to be received by sellers (percent)	50.00%
Estimated fair value of contingent earn-out opportunity			$ 140,000		$ 153,000
Transaction costs		$ 200,000		200,000
Year one to Year three [Member] | MD Office [Member]
Business Acquisition, Contingent Consideration [Line Items]
Aggregate earn-out opportunity	$ 650,000
MD Office [Member]
Business Acquisition, Contingent Consideration [Line Items]
Revenues		15,547,000		29,953,000
Net income (loss)		$ 1,150,000		$ 2,045,000
Customer Relationships [Member]
Business Acquisition, Contingent Consideration [Line Items]
Finite-Lived Intangible Asset, Useful Life			9 years 6 months		8 years 2 months 12 days
Finite-lived Intangible Assets Acquired			$ 6,674,000		$ 2,230,000
Trademarks [Member]
Business Acquisition, Contingent Consideration [Line Items]
Finite-Lived Intangible Asset, Useful Life			6 years 3 months 19 days		7 years 11 months 19 days
Finite-lived Intangible Assets Acquired			$ 4,089,000		$ 637,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 2,621	$ 2,600
Work-in-process	1,662	1,649
Finished goods	1,967	851
Total inventories	6,250	5,100
Less reserve for excess and obsolete inventories	(444)	(719)
Total inventories, net	$ 5,806	$ 4,381

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, and equipment, gross	$ 57,047	$ 29,392
Less accumulated depreciation	(25,028)	(23,140)
Total property and equipment, net	32,019	6,252
Land [Member]
Property, Plant and Equipment [Line Items]
Property, and equipment, gross	1,170	0
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, and equipment, gross	48,306	25,254
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, and equipment, gross	2,935	583
Computer hardware and software [Member]
Property, Plant and Equipment [Line Items]
Property, and equipment, gross	$ 4,636	$ 3,555

Intangibles and Goodwill (Detai

Intangibles and Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Goodwill, Gross	$ 6,819		$ 6,819		$ 2,897
Goodwill	6,819		6,819		2,897
Finite-Lived Intangible Assets, Gross	17,530		17,530		6,668
Finite-Lived Intangible Assets, Accumulated Amortization	(4,747)		(4,747)		(3,589)
Finite-Lived Intangible Assets, Net	12,783		12,783		$ 3,079
Amortization of intangible assets	578	$ 133	1,157	$ 238
Finite-Lived Intangible Assets, Amortization Expense, 2016	1,200		1,200
Finite-Lived Intangible Assets, Amortization Expense, 2017	2,300		2,300
Finite-Lived Intangible Assets, Amortization Expense, 2018	2,200		2,200
Finite-Lived Intangible Assets, Amortization Expense, 2019	1,800		1,800
Finite-Lived Intangible Assets, Amortization Expense, 2020	1,500		1,500
Finite-Lived Intangible Assets, Amortization Expense, 2021	1,500		1,500
Finite-Lived Intangible Assets, Amortization Expense, thereafter	2,300		$ 2,300
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			9 years 6 months		8 years 2 months 12 days
Finite-Lived Intangible Assets, Gross	10,363		$ 10,363		$ 5,489
Finite-Lived Intangible Assets, Accumulated Amortization	(3,689)		(3,689)		(3,259)
Finite-Lived Intangible Assets, Net	6,674		$ 6,674		$ 2,230
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			6 years 3 months 19 days		7 years 11 months 19 days
Finite-Lived Intangible Assets, Gross	4,610		$ 4,610		$ 787
Finite-Lived Intangible Assets, Accumulated Amortization	(521)		(521)		(150)
Finite-Lived Intangible Assets, Net	4,089		$ 4,089		$ 637
Distribution Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			3 years 3 months 19 days
Finite-Lived Intangible Assets, Gross	2,165		$ 2,165
Finite-Lived Intangible Assets, Accumulated Amortization	(329)		(329)
Finite-Lived Intangible Assets, Net	1,836		$ 1,836
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			15 years		14 years 7 months 6 days
Finite-Lived Intangible Assets, Gross	141		$ 141		$ 141
Finite-Lived Intangible Assets, Accumulated Amortization	(128)		(128)		(125)
Finite-Lived Intangible Assets, Net	13		$ 13		$ 16
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			5 years		5 years
Finite-Lived Intangible Assets, Gross	251		$ 251		$ 251
Finite-Lived Intangible Assets, Accumulated Amortization	(80)		(80)		(55)
Finite-Lived Intangible Assets, Net	$ 171		$ 171		$ 196

Financial Instruments - Assets

Financial Instruments - Assets and Liabilities at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value of contingent earn-out opportunity	$ 145	$ 175
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	(27)
Fair Value		3,718
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High	(3)
Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	2,717
Liabilities, Fair Value Disclosure	145	175
Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	2,717	3,718
Corporate Debt Securities [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	2,259	3,227
Common Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	458	491
Available-for-sale Equity Securities, Amortized Cost Basis	721	721
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	(263)	(230)
Common Stock [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	458	491
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Liabilities, Fair Value Disclosure	0	0
Level 1 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	0	0
Level 1 [Member] | Common Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	2,717	3,718
Liabilities, Fair Value Disclosure	0	0
Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	2,259	3,227
Level 2 [Member] | Common Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	458	491
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Liabilities, Fair Value Disclosure	145	175
Level 3 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	0	0
Level 3 [Member] | Common Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Telerhythmics [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value of contingent earn-out opportunity	5	22
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	0
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High	(17)
MD Office [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value of contingent earn-out opportunity	140	$ 153
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	(27)
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High	$ 14

Financial Instruments - Securit

Financial Instruments - Securities Available for Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Fair Value		$ 3,718
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 2,980	3,958
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	(263)	(240)
Fair Value	2,717	3,718
Less than 1 year [Member] | Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,259	2,311
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	0	(5)
Fair Value	2,259	2,306
1-3 years [Member] | Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	0	926
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	0	(5)
Fair Value	$ 0	$ 921

Debt (Details)

Debt (Details) - USD ($)	Jan. 01, 2016	Jun. 30, 2016
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 40,000,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.25%
Interest Expense, Debt		$ 700,000
Restricted Cash and Investments, Noncurrent		4,000,000
Line of Credit Facility, Current Borrowing Capacity		5,900,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	12,500,000
Term Loan, A [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	20,000,000
Term Loan, B [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 7,500,000
London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.00%
London Interbank Offered Rate (LIBOR) [Member] | Term Loan, A [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.50%
London Interbank Offered Rate (LIBOR) [Member] | Term Loan, B [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Base Rate [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Base Rate [Member] | Term Loan, A [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.50%
Base Rate [Member] | Term Loan, B [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.00%
Federal Funds Effective Swap Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Restricted Cash, Noncurrent [Member]
Line of Credit Facility [Line Items]
Restricted Cash and Investments, Noncurrent		1,800,000
Available-for-sale Securities [Member]
Line of Credit Facility [Line Items]
Restricted Cash and Investments, Noncurrent		$ 2,200,000

Debt - Summary (Details)

Debt - Summary (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total borrowing	$ 25,276
Debt Issuance Costs, Net	(678)
Current portion of long-term debt	(5,358)	$ 0
Long-term portion	19,240
Term Loan, A [Member]
Debt Instrument [Line Items]
Secured Long-term Debt, Noncurrent	$ 18,810
Debt Instrument, Interest Rate During Period	2.96%
Term Loan, B [Member]
Debt Instrument [Line Items]
Secured Long-term Debt, Noncurrent	$ 6,457
Debt Instrument, Interest Rate During Period	5.46%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term Line of Credit, Noncurrent	$ 9
Line of Credit Facility, Interest Rate During Period	2.46%

Debt - Debt Maturity Schedule (

Debt - Debt Maturity Schedule (Details) $ in Thousands	Jun. 30, 2016USD ($)
Debt Maturity Schedule [Abstract]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 2,679
Long-term Debt, Maturities, Repayments of Principal in Year Two	5,358
Long-term Debt, Maturities, Repayments of Principal in Year Three	5,358
Long-term Debt, Maturities, Repayments of Principal in Year Four	3,059
Long-term Debt, Maturities, Repayments of Principal in Year Five	2,856
Long-term Debt, Maturities, Repayments of Principal after Year Five	5,966
Total borrowing	$ 25,276

Commitments and Contingencies40

Commitments and Contingencies (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating Leases, Rent Expense	$ 600
Operating Leases
July 1 - December 31, 2016	2,970
2,017	1,237
2,018	979
2,019	780
2,020	588
2,021	168
Thereafter	0
Total future minimum lease payments	6,722
Capital Leases
July 1 - December 31, 2016	403
2,017	665
2,018	308
2,019	122
2,020	29
2,021	0
Thereafter	0
Total future minimum lease payments	1,527
Less amounts representing interest	(89)
Present value of obligations	1,438
Less: current capital lease obligation	(713)
Total long-terms capital lease obligations	$ 725

Income Tax (Details)

Income Tax (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	$ 13.6
Deferred Income Tax Expense (Benefit)	(12.5)
Deferred Tax Assets, Net of Valuation Allowance	1.1
Unrecognized tax benefits	4.8
Unrecognized tax benefits that would impact effective tax rate	$ 4

Segments (Details)

Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Condensed consolidated revenue	$ 32,090	$ 15,547	$ 63,247	$ 29,387
Condensed consolidated gross profit	9,765	4,767	18,830	8,415
Condensed consolidated income from operations	1,472	1,163	919	1,328
Operating Segments [Member]
Segment Reporting Information [Line Items]
Condensed consolidated income from operations	1,643	1,446	2,540	1,636
Operating Segments [Member] | Diagnostic Services [Member]
Segment Reporting Information [Line Items]
Condensed consolidated revenue	12,469	12,179	24,481	22,742
Condensed consolidated gross profit	2,907	2,966	5,455	5,023
Condensed consolidated income from operations	130	593	(4)	72
Operating Segments [Member] | Diagnostic Imaging [Member]
Segment Reporting Information [Line Items]
Condensed consolidated revenue	3,418	3,368	7,000	6,645
Condensed consolidated gross profit	1,851	1,801	3,566	3,392
Condensed consolidated income from operations	755	853	1,258	1,564
Operating Segments [Member] | Mobile Healthcare [Member]
Segment Reporting Information [Line Items]
Condensed consolidated revenue	12,197	0	24,190	0
Condensed consolidated gross profit	2,581	0	5,532	0
Condensed consolidated income from operations	(40)	0	203	0
Operating Segments [Member] | Medical Equipment Sales and Service [Member]
Segment Reporting Information [Line Items]
Condensed consolidated revenue	4,006	0	7,576	0
Condensed consolidated gross profit	2,426	0	4,277	0
Condensed consolidated income from operations	798	0	1,083	0
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Condensed consolidated income from operations	$ (171)	$ (283)	$ (1,621)	$ (308)

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Aug. 01, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Subsequent Event [Line Items]
Dividends declared per common share (in dollars per share)		$ 0.05	$ 0.05	$ 0.10	$ 0.10
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends declared per common share (in dollars per share)	$ 0.05