Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 29, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | HMS HOLDINGS CORP | ||
Entity Central Index Key | 1,196,501 | ||
Trading Symbol | hmsy | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 85,271,867 | ||
Entity Public Float | $ 1.8 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 178,946 | $ 83,313 |
Accounts receivable, net of allowance of $13,683 and $14,799, at December 31, 2018 and December 31, 2017, respectively | 206,772 | 189,460 |
Prepaid expenses | 19,970 | 16,589 |
Income tax receivable | 18,817 | 1,892 |
Deferred financing costs, net | 564 | 564 |
Other current assets | 240 | 836 |
Total current assets | 425,309 | 292,654 |
Property and equipment, net | 94,435 | 98,581 |
Goodwill | 487,617 | 487,617 |
Intangible assets, net | 67,140 | 91,482 |
Deferred financing costs, net | 1,673 | 2,237 |
Other assets | 2,344 | 2,589 |
Total assets | 1,078,518 | 975,160 |
Current liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 74,902 | 61,900 |
Estimated liability for appeals | 21,723 | 30,787 |
Total current liabilities | 96,625 | 92,687 |
Long-term liabilities: | ||
Revolving credit facility | 240,000 | 240,000 |
Net deferred tax liabilities | 18,485 | 21,989 |
Deferred rent | 4,118 | 4,852 |
Other liabilities | 5,894 | 9,403 |
Total long-term liabilities | 268,497 | 276,244 |
Total liabilities | 365,122 | 368,931 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock -- $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock -- $0.01 par value; 175,000,000 shares authorized; 98,924,501 shares issued and 85,261,664 shares outstanding at December 31, 2018; 96,536,251 shares issued and 83,256,858 shares outstanding at December 31, 2017 | 989 | 965 |
Capital in excess of par value | 425,748 | 368,721 |
Retained earnings | 422,235 | 366,164 |
Treasury stock, at cost: 13,663,194 shares at December 31, 2018 and 13,279,393 shares at December 31, 2017 | (135,576) | (129,621) |
Total shareholders' equity | 713,396 | 606,229 |
Total liabilities and shareholders' equity | $ 1,078,518 | $ 975,160 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 13,683 | $ 14,799 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, shares issued (in shares) | 98,924,501 | 96,536,251 |
Common stock, shares outstanding (in shares) | 85,261,664 | 83,256,858 |
Treasury cost, shares (in shares) | 13,663,194 | 13,279,393 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | $ 598,290 | $ 521,212 | $ 489,720 |
Cost of services: | |||
Compensation | 224,893 | 202,049 | 189,271 |
Information technology | 53,428 | 45,723 | 37,337 |
Occupancy | 15,968 | 17,190 | 14,000 |
Direct project expenses | 42,908 | 41,347 | 46,254 |
Other operating expenses | 31,438 | 28,425 | 27,778 |
Amortization of acquisition related software and intangible assets | 32,975 | 30,393 | 28,030 |
Total cost of services | 401,610 | 365,127 | 342,670 |
Selling, general and administrative expenses | 113,442 | 105,654 | 89,381 |
Settlement expense | 20,000 | ||
Total operating expenses | 535,052 | 470,781 | 432,051 |
Operating income | 63,238 | 50,431 | 57,669 |
Interest expense | (11,310) | (10,871) | (8,519) |
Interest income | 1,089 | 295 | 321 |
Income before income taxes | 53,017 | 39,855 | 49,471 |
Income taxes | (1,972) | (199) | 11,835 |
Net Income | $ 54,989 | $ 40,054 | $ 37,636 |
Basic income per common share: | |||
Net income (loss) per common share - basic (in dollars per share) | $ 0.66 | $ 0.48 | $ 0.45 |
Diluted income per common share: | |||
Net income (loss) per common share - diluted (in dollars per share) | $ 0.64 | $ 0.47 | $ 0.43 |
Weighted average shares: | |||
Basic (in shares) | 83,625 | 83,821 | 84,221 |
Diluted (in shares) | 86,144 | 85,088 | 86,987 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Dec. 31, 2015 | 95,263,461 | 11,273,746 | |||
Balance at Dec. 31, 2015 | $ 952 | $ 330,290 | $ 288,474 | $ (95,014) | $ 524,702 |
Net income | 37,636 | 37,636 | |||
Stock-based compensation expense | 13,277 | 13,277 | |||
Total Number of Shares Purchased (in shares) | 1,140,332 | ||||
Purchase of treasury stock | $ (20,470) | $ (20,470) | |||
Exercise of stock options (in shares) | 510,512 | 510,512 | |||
Exercise of stock options | $ 5 | 2,935 | $ 2,940 | ||
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares) | 192,879 | ||||
Vesting of restricted stock awards and units, net of shares withheld for employee tax | $ 2 | (1,477) | (1,475) | ||
Balance (in shares) at Dec. 31, 2016 | 95,966,852 | 12,414,078 | |||
Balance at Dec. 31, 2016 | $ 959 | 345,025 | 326,110 | $ (115,484) | 556,610 |
Net income | 40,054 | 40,054 | |||
Stock-based compensation expense | 24,143 | 24,143 | |||
Total Number of Shares Purchased (in shares) | 865,315 | ||||
Purchase of treasury stock | $ (14,137) | $ (14,137) | |||
Exercise of stock options (in shares) | 172,326 | 172,326 | |||
Exercise of stock options | $ 2 | 2,718 | $ 2,720 | ||
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares) | 397,073 | ||||
Vesting of restricted stock awards and units, net of shares withheld for employee tax | $ 4 | (3,165) | (3,161) | ||
Balance (in shares) at Dec. 31, 2017 | 96,536,251 | 13,279,393 | |||
Balance at Dec. 31, 2017 | $ 965 | 368,721 | 366,164 | $ (129,621) | 606,229 |
Net income | 54,989 | 54,989 | |||
Stock-based compensation expense | 21,507 | $ 21,507 | |||
Total Number of Shares Purchased (in shares) | 383,801 | 383,801 | |||
Purchase of treasury stock | $ (5,955) | $ (5,955) | |||
Exercise of stock options (in shares) | 2,017,442 | 2,017,442 | |||
Exercise of stock options | $ 20 | 38,342 | $ 38,362 | ||
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares) | 370,808 | ||||
Vesting of restricted stock awards and units, net of shares withheld for employee tax | $ 4 | (2,822) | (2,818) | ||
Adoption of accounting standard (Note 1 and 2) (Accounting Standards Update 2014-09 [Member]) at Dec. 31, 2017 | 1,082 | 1,082 | |||
Balance (in shares) at Dec. 31, 2018 | 98,924,501 | 13,663,194 | |||
Balance at Dec. 31, 2018 | $ 989 | $ 425,748 | $ 422,235 | $ (135,576) | $ 713,396 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | |||
Net income | $ 54,989 | $ 40,054 | $ 37,636 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expenses related to property and equipment | 33,254 | 27,515 | 24,882 |
Amortization of intangible assets | 24,342 | 22,555 | 20,164 |
Amortization of deferred financing costs | 564 | 2,258 | 2,083 |
Stock-based compensation expense | 21,507 | 24,143 | 13,277 |
Deferred income taxes | (3,504) | (20,408) | (7,368) |
(Gain) / Loss on disposal of assets | 209 | (948) | |
Change in fair value of contingent consideration | (35) | (2,865) | |
Release of estimated liability | (8,436) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (17,312) | (6,976) | (3,554) |
Prepaid expenses | (3,381) | (1,463) | (2,399) |
Other current assets | 596 | 165 | 2,066 |
Other assets | 245 | 124 | 234 |
Income taxes receivable / (payable) | (16,925) | 1,462 | (7,227) |
Accounts payable, accrued expenses and other liabilities | 11,181 | (340) | 12,116 |
Estimated liability for appeals | (628) | 32 | (2,323) |
Net cash provided by operating activities | 96,457 | 86,464 | 88,639 |
Investing activities: | |||
Acquisition of a business, net of cash acquired | (171,321) | (20,678) | |
Proceeds from sale of cost basis investment | 2,496 | ||
Purchases of property and equipment | (11,264) | (17,318) | (13,703) |
Investment in capitalized software | (19,149) | (15,725) | (7,316) |
Net cash used in investing activities | (30,413) | (204,364) | (39,201) |
Financing activities: | |||
Proceeds from credit facility | 42,204 | ||
Payments for deferred financing costs | (2,269) | ||
Proceeds from exercise of stock options | 38,362 | 2,720 | 2,940 |
Payments of tax withholdings on behalf of employees for net-share settlements | (2,818) | (3,161) | (1,475) |
Payments on capital lease obligations | (143) | (44) | |
Purchases of treasury stock | (5,955) | (14,137) | (20,470) |
Net cash provided by/(used in) financing activities | 29,589 | 25,214 | (19,049) |
Net increase/(decrease) in cash and cash equivalents | 95,633 | (92,686) | 30,389 |
Cash and Cash Equivalents | |||
Cash and cash equivalents at beginning of year | 83,313 | 175,999 | 145,610 |
Cash and cash equivalents at end of period | 178,946 | 83,313 | 175,999 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes, net of refunds | 22,225 | 17,995 | 20,326 |
Cash paid for interest | 10,326 | 9,944 | 6,196 |
Supplemental disclosure of non-cash activities: | |||
Change in balance of accrued property and equipment purchases | $ 1,305 | $ 51 | $ 684 |
Note 1 - Business and Summary o
Note 1 - Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Business and Summary of Significant Accounting Policies (a) Business HMS is an industry-leading provider of cost containment solutions in the healthcare marketplace. We use healthcare technology, analytics and engagement solutions, to deliver coordination of benefits, payment integrity, population risk analytics, and care management and consumer engagement solutions to help payers reduce costs, improve healthcare outcomes and enhance member experiences. We provide coordination of benefits services to government and commercial healthcare payers to ensure that the correct party pays the claim. Our payment integrity services promote accuracy by fighting fraud, waste and abuse, and our total population management solutions provide risk-bearing organizations with reliable intelligence across their member populations to identify risks and improve patient engagement and outcomes. Together these various services help move the healthcare system forward for our customers. We currently operate as one (b) Summary of Significant Accounting Policies For certain accounting topics, the description of the accounting policy may (i) Principles of Consolidation The consolidated financial statements include the Company’s accounts and transactions and those of the Company’s wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. (ii) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (iii) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three (iv) Concentration of Credit Risk The Company’s policy is to limit credit exposure by placing cash in accounts which are exposed to minimal interest rate and credit risk. HMS maintains cash and cash equivalents in cash depository accounts with large financial institutions with a minimum credit rating of A1/P1 $250,000 not not The Company is subject to potential credit risk related to changes in economic conditions within the healthcare market. However, HMS believes that the billing and collection policies are adequate to minimize the potential credit risk. The Company performs ongoing credit evaluations of customers and generally does not (v) Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful lives of the assets utilizing the straight-line method. HMS amortizes leasehold improvements on a straight-line basis over the shorter of (i) the term of the lease or (ii) the estimated useful life of the improvement. Equipment leased under capital leases is depreciated over the shorter of (i) the term of the lease or (ii) the estimated useful life of the equipment. Capitalized software costs relate to software that is acquired or developed for internal use while in the application development stage. All other costs to develop software for internal use, either in the preliminary project stage or post-implementation stage, are expensed as incurred. Amortization of capitalized software is calculated on a straight-line basis over the expected economic life. Land is not Estimated useful lives are as follows: Property and Equipment Useful Life Equipment 2 to 5 Leasehold improvements 5 to 10 Furniture and fixtures 5 Capitalized software 3 to 10 Building and building improvements up to 39 Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not not December 31, 2018, 2017 2016. (vi) Intangible assets The Company records assets acquired and liabilities assumed in a business combination based upon their acquisition date fair values. In most instances there is not third not may All of the Company’s intangible assets are subject to amortization and are amortized using the straight-line method over their estimated period of benefit. Estimated useful lives are as follows: Intangible Assets Useful Life Customer relationships 7 to 15 Restrictive covenants 1 to 3 Trade names 1.5 to 7 Intellectual property 4 to 6 Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not not December 31, 2018, 2017 2016. (vii) Goodwill Goodwill is the excess of acquisition costs over the fair values of assets and liabilities of acquired businesses. During the measurement period, which is up to one may Goodwill is subject to a periodic assessment for impairment. The Company assesses goodwill for impairment on an annual basis as of June 30th not not June 30, 2018 first three 3 no no December 31, 2018, 2017 2016. no December 31, 2018. (viii) Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. This method also requires the recognition of future tax benefits for net operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. A valuation allowance is provided against deferred tax assets to the extent their realization is not not. no not (ix) Expense Classifications HMS cost of services is presented in the categories set forth below. Each category within cost of services excludes expenses relating to SG&A functions, which are presented separately as a component of total operating costs. A description of the primary expenses included in each category is as follows: Cost of Services: § Compensation: Salary, fringe benefits, bonus and stock-based compensation. § Information technology: Hardware, software and data communication costs. § Occupancy: Rent, utilities, depreciation, office equipment and repair and maintenance costs. § Direct project expense: Variable costs incurred from third § Other operating expenses: Professional fees, temporary staffing, travel and entertainment, insurance and local and property tax costs. § Amortization of acquisition related software and intangible assets: Amortization of the cost of acquisition related software and intangible assets. SG&A: § Expenses related to general management, marketing and administrative activities. ( x Estimating Valuation Allowances and Accrued Liabilities The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reported period. In particular, management must make estimates of the probability of collecting accounts receivable. When evaluating the adequacy of the accounts receivable allowance, management reviews the accounts receivable based on an analysis of historical revenue adjustments, bad debts, customer concentrations, customer credit-worthiness, current economic trends and changes in customer payment terms. As of December 31, 2018 2017, $206.8 $189.5 $13.7 $14.8 (xi) Stock-Based Compensation Long-Term Incentive Award Plans The Company grants stock options and restricted stock units (“equity awards”) to HMS employees and non-employee directors under the 2016 June 23, 2016. 2016 2006 2011 December 31, 2018, 4,758,398 2016 2016 one four 2016 may not may not ten 2018, two 1 2 2018, Stock-Based Compensation Expense The Company recognizes stock-based compensation expense equal to the grant date fair value of the award on a straight-line basis over the requisite service period. The fair value of each option grant with only service-based conditions is estimated using the Black-Scholes pricing model. The fair value of each option grant with market and service-based conditions is estimated using a Monte Carlo simulation model. The fair value of each restricted stock unit is calculated based on the closing sale price of the Company’s common stock on the grant date. The determination of the fair value of the options on the grant date using the Black-Scholes pricing model and/or the Monte Carlo simulation model is affected by the Company’s stock price, as well as assumptions regarding a number of complex and subjective variables. Certain key variables include: the Company’s expected stock price volatility over the expected term of the awards; a risk-free interest rate; and any expected dividends. The Company estimates stock price volatility based on the historical volatility of the Company’s common stock and estimates the expected term of the awards based on the Company’s historical option exercises for similar types of stock option awards. The assumed risk-free interest rate is based on the yield on the measurement date of a zero not zero (xii) Fair Value of Financial Instruments Financial instruments are categorized into a three three 1 3 not § Level 1: Observable inputs such as quoted prices in active markets; § Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and § Level 3: Unobservable inputs in which there is little or no (xiii) Leases HMS accounts for lease agreements as either operating or capital leases, depending on certain defined criteria. Lease costs are amortized on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives such as tenant improvement allowances, are capitalized and are treated as a reduction of rental expense over the term of the lease agreement. (xiv) Recent Accounting Guidance Recently Adopted Accounting Guidance In May 2014, 2014 09, Revenue from Contracts with Customers 606 2014 09” 2014 09 January 1, 2018 not 2014 09 not In March 2016, No. 2016 09, Compensation – Stock Compensation 718 Improvements to Employee Share-Based Payment Accounting 2016 09” no 2016 09 December 15, 2016, fourth 2016 January 1, 2016, 2016. no January 1, 2016, $1.9 December 31, 2016. no 2016 In August 2016, No. 2016 15, Statements of Cash Flows 230 Classification of Certain Cash Receipts and Cash Payments 2016 15” 2016 15 December 15, 2017, January 1, 2018. not In January 2017, No. 2017 01, Business Combinations 805 Clarifying the Definition of a Business 2017 01” 2017 01 December 15, 2017, January 1, 2018. not In May 2017, No. 2017 09, Compensation – Stock Compensation 718 Scope of Modification Accounting 2017 09” 2017 09 not 1 2 3 2017 09 December 15, 2017, January 1, 2018. not In January 2017, No. 2017 04, Goodwill and Other 350 Simplifying the Test for Goodwill Impairment 2017 04” 2 2 1 2 not fourth 2018. not On August 17, 2018 No. 33 10532, Disclosure Update and Simplification November 5, 2018. not Recent Accounting Guidance Not In February 2016, No. 2016 02, 842 2016 02” 2016 02 2016 02 No. 2018 01, 842; No. 2018 10, 842, No. 2018 11, 12 2016 02 December 15, 2018 not January 1, 2019 not not 2016 02 2016 02 not 1 2 not January 1, 2019 $28 $31 not In June 2016, No. 2016 13, Financial Instruments – Credit Losses 2016 13” 2016 13 2016 13 not not 2016 13 December 15, 2019, not In June 2018, No. 2018 07, Compensation – Stock Compensation 718 Improvements to Nonemployee Share Based Payment Accounting 2018 07” 2018 07 2018 07 December 15, 2018, not |
Note 2 - Revenue
Note 2 - Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2. Revenue The Company’s revenue disaggregated by service for the year ended December 31, 2018 in thousands Coordination of Benefits $ 397,095 Payment Integrity 144,063 Total Population Management 57,132 Total $ 598,290 Coordination of benefits revenue is derived from contracts with state governments and Medicaid managed care plans that typically span 1 5 third not one three not Analytical services consists of payment integrity services and total population management. Payment integrity services revenue is derived from contracts with federal and state governments, commercial health plans and other at-risk entities that can span several years with the option to renew. Types of service contracts could include: (a) services designed to ensure that healthcare payments are accurate and appropriate; and (b) the identification of over/(under)payments or inaccurate charges based on a review of medical records. Most of these types of service contracts contain multiple promises, all of which are not one three not Total population management revenue is derived from contracts with health plans and other risk-bearing entities that can span several years with the option to renew. Types of service contracts could include: (a) programs designed to improve member engagement; and (b) outreach services designed to improve clinical outcomes. Most of these types of service contracts contain multiple promises, all of which are not 1 2 one three 606, December 31, 2017, $1.1 January 1, 2018 606. 30, 45, 60 may The Company’s revenue disaggregated by market for the year ended December 31, 2018 in thousands Commercial $ 323,150 State 233,921 Federal 41,219 Total $ 598,290 A portion of the Company’s services are deferred and revenue is recognized at a later time. Deferred revenue was approximately $6.4 December 31, 2017; $1.1 January 1, 2018 $5.3 December 31, 2018. $5.6 December 31, 2018. Contract modifications are routine in nature and often done to account for changes in the contract specifications or requirements. In most instances, contract modifications are for services that are not one |
Note 3 - Fair Value of Financia
Note 3 - Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | 3. Fair Value of Financial Instruments Financial instruments (principally cash and cash equivalents, accounts receivable, accounts payable and accrued expenses) are carried at cost, which approximates fair value due to the short-term maturity of these instruments. The Company’s long-term credit facility is carried at cost, which due to the variable interest rate associated with the revolving credit facility, cost approximates its fair value. The Company has no 1 2 no 1 2 $0 $35 December 31, 2018 2017, 3 no 3 2018 2017. no 3 |
Note 4 - Acquisition
Note 4 - Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 4. Acquisitions (a) Eliza Holding Corp. On April 17, 2017, 100% $171.6 75% 25% The allocation of the purchase price to the fair value of the assets acquired and the liabilities assumed as of April 17, 2017, in thousands Cash and cash equivalents $ 435 Accounts receivable 8,902 Prepaid expenses 1,427 Property and equipment 1,146 Intangible assets 76,240 Goodwill 107,754 Other assets 63 Accounts payable (2,620 ) Deferred tax liability (19,681 ) Other liabilities (2,057 ) Total purchase price $ 171,609 The purchase price allocated to the intangibles acquired was as follows ( in thousands Useful Life (in years) Customer relationships 15 $ 56,200 Intellectual property 6 19,600 Trade name 1.5 310 Restrictive covenants 1 130 Fair value of intangibles acquired $ 76,240 Acquisition costs recorded to selling, general and administrative expenses were as follows ( in thousands Other operating expenses - consulting fees $ 3,515 Other operating expenses - legal fees 832 Other operating expenses - transaction costs 185 Acquisition-related costs $ 4,532 The financial results of Eliza’s operations since April 17, 2017 $51.9 $30.4 December 31, 2018 2017, (b) Essette On September 2, 2016, $24.2 September 2, 2016 |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property and Equipment Property and equipment consisted of the following ( in thousands December 31, 2018 2017 Equipment $ 95,350 $ 106,768 Leasehold improvements 7,547 8,357 Building 8,624 8,624 Building improvements 14,825 14,546 Land 2,769 2,769 Furniture and fixtures 9,404 10,352 Capitalized software 131,819 125,655 270,338 277,071 Less: accumulated depreciation and amortization (175,903 ) (178,490 ) Property and equipment, net $ 94,435 $ 98,581 December 31, 2018 2017 2016 Depreciation and amortization expenses related to property and equipment $ 33,254 $ 27,515 $ 24,882 |
Note 6 - Intangible Assets
Note 6 - Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. Intangible Assets Intangible assets consisted of the following ( in thousands Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period in Years December 31, 2018 Customer relationships $ 156,790 $ (104,740 ) $ 52,050 12.8 Trade names 16,246 (16,215 ) 31 0.7 Intellectual property 21,700 (6,670 ) 15,030 4.1 Restrictive covenants 263 (234 ) 29 0.7 Total $ 194,999 $ (127,859 ) $ 67,140 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period in Years December 31, 2017 Customer relationships $ 159,290 $ (89,106 ) $ 70,184 11.3 Trade names 16,246 (13,916 ) 2,330 1.0 Intellectual property 21,700 (2,874 ) 18,826 5.2 Restrictive covenants 263 (121 ) 142 1.3 Total $ 197,499 $ (106,017 ) $ 91,482 Amortization expense of intangible assets is expected to approximate the following ( in thousands Year ending December 31, Amortization 2019 $ 9,195 2020 7,664 2021 7,197 2022 7,197 2023 4,822 Thereafter 31,065 Total $ 67,140 For the years ended December 31, 2018, 2017 2016, $24.3 $22.6 $20.2 December 31, 2018, |
Note 7 - Accounts Payable, Accr
Note 7 - Accounts Payable, Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | 7. Accounts Payable, Accrued Expenses and Other Liabilities Accounts payable, accrued expenses and other liabilities consisted of the following ( in thousands December 31, 2018 December 31, 2017 Accounts payable, trade $ 12,394 $ 19,330 Accrued compensation and other 42,833 24,072 Accrued operating expenses 19,675 18,498 Total accounts payable, accrued expenses and other liabilities $ 74,902 $ 61,900 |
Note 8 - Income Taxes
Note 8 - Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. Income Taxes Income tax expense is as follows ( in thousands December 31, 2018 2017 2016 Current tax expense: Federal $ 2,965 $ 17,008 $ 16,274 State (1,433 ) 3,201 2,929 Total current tax expense: 1,532 20,209 19,203 Deferred tax expense (benefit): Federal (2,650 ) (19,425 ) (7,115 ) State (854 ) (983 ) (253 ) Total deferred tax benefit: (3,504 ) (20,408 ) (7,368 ) Total income tax expense (benefit) $ (1,972 ) $ (199 ) $ 11,835 A reconciliation of the income tax expense calculated using the applicable federal statutory rate to the actual income tax expense is as follows ( in thousands December 31, 2018 % 2017 % 2016 % Computed at federal statutory rate $ 11,134 21.0 $ 13,949 35.0 $ 17,315 35.0 State and local tax expense, net of federal benefit 2,367 4.5 2,226 5.6 2,448 5.0 Net permanent deduction and credit tax benefits from current year (1,143 ) (2.2 ) (1,513 ) (3.8 ) (1,509 ) (3.1 ) Net permanent deduction and credit tax benefits from prior years - - - - (6,213 ) (12.6 ) Net uncertain tax positions excluding current permanent deduction and credit benefits (3,756 ) (7.0 ) (373 ) (0.9 ) - - Subsidiary basis write off (3,423 ) (6.5 ) - - - - Equity compensation net tax windfall (2,890 ) (5.5 ) - - - - State tax apportionment changes (3,737 ) (7.0 ) - - - - Disallowed executive compensation 682 1.3 - - - - Tax Reform - revaluation of deferrals - - (15,130 ) (38.0 ) - - Acquisition adjustments (1,226 ) (2.3 ) (1,003 ) (2.5 ) - - Acquisition costs - - 697 1.7 203 0.4 Other, net 20 - 948 2.4 (409 ) (0.8 ) Total income tax expense $ (1,972 ) (3.7 ) $ (199 ) (0.5 ) $ 11,835 23.9 The Company’s effective tax rate decreased to ( 3.7% December 31, 2018 0.5% December 31, 2017, no December 22, 2017. December 31, 2018 15 As a result of an analysis performed during 2016, 41 199 199. December 31, 2016 $6.2 199 2012 2015. Deferred income taxes are recognized for the future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities. The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities are as follows (in thousands December 31, 2018 2017 Deferred tax assets: Stock-based compensation $ 9,545 $ 9,980 Goodwill and intangible assets 5,874 6,524 Allowance for doubtful accounts 3,537 3,822 Deferred rent 696 909 Tenant improvements 569 669 Estimated liability for appeals 5,632 7,775 Net operating loss carry-forwards 1,527 3,358 Tax credit carry-forwards 4,076 3,667 Property and equipment 49 256 Accrued expenses and other 7,839 3,615 Total deferred tax assets 39,344 40,575 Deferred tax liabilities: Goodwill and intangible assets 43,400 48,186 Section 481(a) adjustment 5,073 7,413 Prepaid expenses 668 624 Capitalized software cost 8,688 6,341 Total deferred tax liabilities 57,829 62,564 Total net deferred tax liabilities $ 18,485 $ 21,989 Included i n Other liabilities on the Consolidated Balance Sheets, are the total amount of unrecognized tax benefits of approximately $4.8 $8.2 December 31, 2018 2017, $0.7 $0.6 December 31, 2018 2017, December 31, 2018, 2017, 2016 $0.1 $0.02 $0.2 may $1.7 2019, A reconciliation of the beginning and ending amounts of unrecognized tax benefits are as follows ( in thousands 2018 2017 Unrecognized tax benefits at January 1 $ 8,234 $ 7,433 Additions for tax positions taken during prior periods 399 599 Additions for tax positions taken during current period including amended prior years 360 1,174 Reductions relating to settlements with taxing authorities (2,227 ) - Reductions related to the expiration of statutes of limitations (1,927 ) (972 ) Unrecognized tax benefits at December 31 $ 4,839 $ 8,234 The Company increased the provision for unrecognized tax benefits by $0.4 December 31, 2018, December 31, 2018, $24.3 $4.1 not 2020 2019, no 2013. 2013 2014 |
Note 9 - Estimated Liability fo
Note 9 - Estimated Liability for Appeals | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Estimated Liability and Allowance for Appeals [Text Block] | 9. Estimated Liability for Appeals Under the Company’s contracts with certain commercial health plan customers and its Medicare RAC contracts with CMS (included within the Company’s PI services revenue), providers have the right to appeal HMS claim findings and to pursue additional appeals if the initial appeal is found in favor of HMS’s customer. The appeal process established under the Medicare RAC contracts with CMS includes five A roll-forward of the activity in the estimated liability for appeals is as follows ( in thousands Original RAC 4 Commercial contracts Total Balance at December 31, 2016 $ 28,427 $ - $ 2,328 $ 30,755 Provision 2,054 - 2,729 4,783 Appeals found in providers favor (2,665 ) - (2,086 ) (4,751 ) Balance at December 31, 2017 $ 27,816 $ - $ 2,971 $ 30,787 Provision 108 20 2,038 2,166 Appeals found in providers favor (108 ) - (2,686 ) (2,794 ) Release of estimated liability (8,436 ) - - (8,436 ) Balance at December 31, 2018 $ 19,380 $ 20 $ 2,323 $ 21,723 The Company’s original Medicare RAC contract with CMS expired on January 31, 2018. $8.4 first 2018. The Company continues to assess the remaining CMS liability for the original Medicare RAC contract to determine management’s best estimate of liability for any findings which have been previously adjudicated prior to the expiration of the contract. Any future changes or modifications to the Medicare RAC contracts or to the Company’s commercial customer contracts may |
Note 10 - Credit Agreement
Note 10 - Credit Agreement | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 10. Credit Agreement In May 2013, $500 five May 3, 2018. On December 19, 2017, five December 2022. $50 $25 may one not $120 100% first not 3.00:1.00, During the year ended December 31, 2018, no December 31, 2018, $240.0 Borrowings under the Credit Agreement will bear interest at a rate equal to, at the Company’s election (except with respect to swingline borrowings, which will accrue interest based only at the base rate), either: § a base rate determined by reference to the greatest of (a) the prime or base commercial lending rate of the administrative agent as in effect on the relevant date, (b) the federal funds effective rate plus 0.50% one 1.00%, plus 0.50% 1.00% § an adjusted LIBO Rate, equal to the LIBO Rate for the applicable interest period multiplied by the statutory reserve rate (equal to ( x one one plus 1.50% 2.00% In addition to paying interest on the outstanding principal, the Company is required to pay unused commitment fees on the revolving credit facility during the term of the Credit Agreement ranging from 0.375% 0.250% 0.125% The Company’s obligations under the Credit Agreement are secured, subject to certain customary carve-outs and exceptions, by a first two 3:00:1:00, 4.75:1.00 December 2019 4.25:1.00 January 2020. 5.25:1.00 four December 31, 2018, Interest expense and the commitment fees on the unused portion of the Company’s revolving credit facility are as follows (in thousands Years ended December 31, 2018 2017 2016 Interest expense $ 9,294 $ 7,170 $ 4,837 Commitment fees 1,189 1,359 1,518 The Company deferred $2.3 December 31, 2018 2017, $2.2 $2.8 $0.6 $2.3 $2.1 December 31, 2018, 2017 2016. As part of a contractual agreement with a customer, the Company has an outstanding irrevocable letter of credit for $6.5 June 30, 2019. |
Note 11 - Equity
Note 11 - Equity | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 11. Equity (a) Share Repurchase Following are the Company’s quarterly repurchases of shares of common stock for fiscal year 2018, Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Program Maximum Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program January 1, 2018 to March 31, 2018 383,801 $ 15.50 383,801 $ 29,933,055 April 1, 2018 to June 30, 2018 - - - - July 1, 2018 to September 30, 2018 - - - - October 1, 2018 to December 31, 2018 - - - - Total 383,801 $ 15.50 383,801 $ 29,933,055 (b) Preferred Stock The Company’s certificate of incorporation, as amended, authorizes the issuance of up to 5,000,000 may December 31, 2018, no |
Note 12 - Employee Benefit Plan
Note 12 - Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans, Other than Share-based Compensation [Text Block] | 12. Employee Benefit Plan The Company sponsors the 401 90 401 may 401 60% not 401 2018, 100% first 4% 50% 1% 2017 2016, 100% first 3% 50% 2% not For the years ended December 31, 2018, 2017 2016, $7.3 $5.9 $4.8 401 |
Note 13 - Stock-based Compensat
Note 13 - Stock-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 13. Stock-Based Compensation Stock-Based Compensation Expense Total stock-based compensation expense in the Company’s Consolidated Statements of Income related to the Company’s long-term incentive award plans was as follows ( in thousands Years ended December 31, 2018 2017 2016 Cost of services-compensation $ 7,421 $ 7,354 $ 3,805 Selling, general and administrative 14,086 16,789 9,472 Total $ 21,507 $ 24,143 $ 13,277 The total tax benefits recognized on stock-based compensation for the years ended December 31, 2018, 2017 2016 $9.1 $4.0 $4.1 Stock Options Stock-based compensation expense related to stock options was approximately $9.6 $10.3 $6.9 December 31, 2018, 2017 2016, Presented below is a summary of stock option activity for the year ended December 31, 2018 ( in thousands except for weighted average exercise price and weighted average remaining contractual terms Number of Options Weighted Average Exercise Price Weighted Average- Remaining Contractual Terms Aggregate- Intrinsic Value Outstanding balance at December 31, 2017 5,554 $ 17.35 Granted 1,010 19.58 Exercised (2,017 ) 19.14 Forfeitures (114 ) 17.74 Expired (31 ) 22.34 Outstanding balance at December 31, 2018 4,402 17.07 5.80 $ 48,339 Expected to vest at December 31, 2018 1,481 $ 18.60 8.22 $ 14,119 Exercisable at December 31, 2018 2,370 $ 15.87 3.83 $ 29,068 As of December 31, 2018 2017, 1,999,069 2,372,682, $7.27 $6.39, December 31, 2018, 2017 2016 $7.52, $7.66 $5.55, December 31, 2018 $6.18. December 31, 2018, 2017 2016 $6.86, $5.24 $6.26, HMS estimated the fair value of each stock option grant on the date of grant using a Black-Scholes option pricing model. Weighted–average assumptions are set forth in the following table: Year ended December 31, 2018 2017 2016 Expected dividend yield - - - Risk-free interest rate 2.7 % 1.8 % 1.2 % Expected volatility 42.4 % 44.2 % 44.0 % Expected life (years) 6.0 5.0 4.9 HMS estimated the fair value of 2017 2016 no 2018. Year ended December 31, 2018 2017 2016 Expected dividend yield - - - Risk-free interest rate - 2.2 % 1.6 % Expected volatility - 52.5 % 40.5 % Expected life (years) - 6.5 4.9 During the years ended December 31, 2018, 2017 2016, 2,017,442, 172,326 510,512 $38.3 $2.7 $2.9 December 31, 2018, 2017 2016 $27.6 $0.5 $6.3 As of December 31, 2018, $5.5 0.9 Restricted Stock Units Stock-based compensation expense related to restricted stock units was $11.9 $13.8 $6.4 December 31, 2018, 2017 2016, Presented below is a summary of restricted stock units activity for the year ended December 31, 2018 ( in thousands, except for weighted average grant date fair value per unit Number of Units Weighted Average Grant Date Fair Value per Unit Outstanding balance at December 31, 2017 1,346 $ 17.65 Granted 766 16.80 Vesting of restricted stock units, net of units withheld for taxes (371 ) 17.06 Units withheld for taxes (163 ) 17.06 Forfeitures (90 ) 17.31 Outstanding balance at December 31, 2018 1,488 $ 17.60 December 31, 2018, 1,259,003 $9.2 0.87 December 31, 2018, 2017 2016, $9.9 $9.5 $6.8 December 31, 2018, 2017 2016 $17.06, $15.39 $18.64, December 31, 2018, 2017 2016 $17.31, $15.37 $16.95, |
Note 14 - Earnings Per Share
Note 14 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 14. Earnings per Share The f ollowing table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts) Years ended December 31, 2018 2017 2016 Net income $ 54,989 $ 40,054 $ 37,636 Weighted average common shares outstanding-basic 83,625 83,821 84,221 Plus: net effect of dilutive stock options and restricted stock units 2,519 1,808 2,766 Weighted average common shares outstanding-diluted 86,144 85,629 86,987 Net income per common share-basic $ 0.66 $ 0.48 $ 0.45 Net income per common share-diluted $ 0.64 $ 0.47 $ 0.43 For the years ended December 31, 2018, 2017 2016: 804,959, 2,646,100 2,070,771 0, 31,155 46,651 not |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 15. Commitments and Contingencies (a) Lease Commitments The Company primarily leases office space but also leases information technology equipment and software licenses under operating leases that expire on various dates through 2026. December 31, 2018, 2017 2016 $3.6 $5.1 $5.0 Minimum annual lease payments to be made under operating leases, net of $8.3 five December 31 in thousands Operating Lease Payments 2019 $ 5,778 2020 5,420 2021 3,742 2022 2,531 2023 2,236 Thereafter 2,947 Total $ 22,654 (b) Litigation In July 2012, second two one June 2016, July 2017, one November 3, 2017, $60 March 14, 2018, June 27, 2018, $20 July 5, 2018, In February 2018, March 2018 not In September 2018, From time to time, HMS may not may may may HMS records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not not |
Note 16 - Customer Concentratio
Note 16 - Customer Concentration | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 16. Customer Concentration (a) Geographic Information The Company operates within the United States. (b) Major Customers For the years ended December 31, 2018, 2017 2016 no one 10% (c) Concentration of Revenue The composition of the Company’s ten December 31, 2018, 2017 2016, ten 41.4%, 39.5% 40.6% ten 2019 2026. may may |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 17. Subsequent Events Annual Grants to Employees On February 14, 2019, $21.3 three three 2018 10 In connection with the preparation of our consolidated financial statements, an evaluation of subsequent events was performed through the date of filing and there were no |
Note 18 - Quarterly Financial D
Note 18 - Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 18. Quarterly Financial Data (Unaudited) The table below summarizes the Company’s unaudited quarterly operating results for the last two in thousands, except per share amounts 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended Revenue $ 141,425 $ 146,791 $ 154,246 $ 155,828 $ 598,290 Operating income $ 11,922 $ (763 ) $ 24,231 $ 27,848 $ 63,238 Net income $ 6,391 $ (3,367 ) $ 18,574 $ 33,391 $ 54,989 Net income per common share - basic $ 0.08 $ (0.04 ) $ 0.22 $ 0.40 $ 0.66 Net income per common share - diluted $ 0.07 $ (0.04 ) $ 0.22 $ 0.38 $ 0.64 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended Revenue $ 113,733 $ 133,313 $ 125,673 $ 148,493 $ 521,212 Operating income $ 3,943 $ 14,361 $ 12,861 $ 19,266 $ 50,431 Net income $ 1,442 $ 6,517 $ 6,372 $ 25,723 $ 40,054 Net income per common share - basic $ 0.02 $ 0.08 $ 0.08 $ 0.30 $ 0.48 Net income per common share - diluted $ 0.02 $ 0.08 $ 0.07 $ 0.30 $ 0.47 ( 1 2018 $20.0 15. ( 2 2017 $15.1 2017 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS For the years ended December 31, 2018, 2017 2016 Accounts receivable allowance and Estimated liability for appeals as of December 31, 2018, 2017 2016 Accounts receivable allowance (in thousands) Balance at Beginning of Year Provision Recoveries Charge-offs Balance at End of Year Year ended December 31, 2016 $ 11,464 $ 21,583 $ 108 $ (22,383 ) $ 10,772 Year ended December 31, 2017 10,772 20,233 - (16,206 ) 14,799 Year ended December 31, 2018 14,799 20,453 - (21,569 ) 13,683 Estimated liability for appeals (in thousands) Balance at Beginning of Year Provision Appeals found in providers favor Release of estimated liability Balance at End of Year Year ended December 31, 2016 $ 12,801 $ 721 $ (2,396 ) $ - $ 11,126 Year ended December 31, 2017 11,126 83 (2,665 ) - 8,544 Year ended December 31, 2018 8,544 - (108 ) (8,436 ) - The above chart represents the CMS estimated reserve liability only. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | (i) Principles of Consolidation The consolidated financial statements include the Company’s accounts and transactions and those of the Company’s wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | (ii) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (iii) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | (iv) Concentration of Credit Risk The Company’s policy is to limit credit exposure by placing cash in accounts which are exposed to minimal interest rate and credit risk. HMS maintains cash and cash equivalents in cash depository accounts with large financial institutions with a minimum credit rating of A1/P1 $250,000 not not The Company is subject to potential credit risk related to changes in economic conditions within the healthcare market. However, HMS believes that the billing and collection policies are adequate to minimize the potential credit risk. The Company performs ongoing credit evaluations of customers and generally does not |
Property, Plant and Equipment, Policy [Policy Text Block] | (v) Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful lives of the assets utilizing the straight-line method. HMS amortizes leasehold improvements on a straight-line basis over the shorter of (i) the term of the lease or (ii) the estimated useful life of the improvement. Equipment leased under capital leases is depreciated over the shorter of (i) the term of the lease or (ii) the estimated useful life of the equipment. Capitalized software costs relate to software that is acquired or developed for internal use while in the application development stage. All other costs to develop software for internal use, either in the preliminary project stage or post-implementation stage, are expensed as incurred. Amortization of capitalized software is calculated on a straight-line basis over the expected economic life. Land is not Estimated useful lives are as follows: Property and Equipment Useful Life Equipment 2 to 5 Leasehold improvements 5 to 10 Furniture and fixtures 5 Capitalized software 3 to 10 Building and building improvements up to 39 Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not not December 31, 2018, 2017 2016. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | (vi) Intangible assets The Company records assets acquired and liabilities assumed in a business combination based upon their acquisition date fair values. In most instances there is not third not may All of the Company’s intangible assets are subject to amortization and are amortized using the straight-line method over their estimated period of benefit. Estimated useful lives are as follows: Intangible Assets Useful Life Customer relationships 7 to 15 Restrictive covenants 1 to 3 Trade names 1.5 to 7 Intellectual property 4 to 6 Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not not December 31, 2018, 2017 2016. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | (vii) Goodwill Goodwill is the excess of acquisition costs over the fair values of assets and liabilities of acquired businesses. During the measurement period, which is up to one may Goodwill is subject to a periodic assessment for impairment. The Company assesses goodwill for impairment on an annual basis as of June 30th not not June 30, 2018 first three 3 no no December 31, 2018, 2017 2016. no December 31, 2018. |
Income Tax, Policy [Policy Text Block] | (viii) Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. This method also requires the recognition of future tax benefits for net operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. A valuation allowance is provided against deferred tax assets to the extent their realization is not not. no not |
Cost of Sales and Selling General and Administrative Expense [Policy Text Block] | (ix) Expense Classifications HMS cost of services is presented in the categories set forth below. Each category within cost of services excludes expenses relating to SG&A functions, which are presented separately as a component of total operating costs. A description of the primary expenses included in each category is as follows: Cost of Services: § Compensation: Salary, fringe benefits, bonus and stock-based compensation. § Information technology: Hardware, software and data communication costs. § Occupancy: Rent, utilities, depreciation, office equipment and repair and maintenance costs. § Direct project expense: Variable costs incurred from third § Other operating expenses: Professional fees, temporary staffing, travel and entertainment, insurance and local and property tax costs. § Amortization of acquisition related software and intangible assets: Amortization of the cost of acquisition related software and intangible assets. SG&A: § Expenses related to general management, marketing and administrative activities. |
Estimating Valuation Allowances and Accrued Liabilities, Such as Bad Debt, Policy [Policy Text Block] | ( x Estimating Valuation Allowances and Accrued Liabilities The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reported period. In particular, management must make estimates of the probability of collecting accounts receivable. When evaluating the adequacy of the accounts receivable allowance, management reviews the accounts receivable based on an analysis of historical revenue adjustments, bad debts, customer concentrations, customer credit-worthiness, current economic trends and changes in customer payment terms. As of December 31, 2018 2017, $206.8 $189.5 $13.7 $14.8 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | (xi) Stock-Based Compensation Long-Term Incentive Award Plans The Company grants stock options and restricted stock units (“equity awards”) to HMS employees and non-employee directors under the 2016 June 23, 2016. 2016 2006 2011 December 31, 2018, 4,758,398 2016 2016 one four 2016 may not may not ten 2018, two 1 2 2018, Stock-Based Compensation Expense The Company recognizes stock-based compensation expense equal to the grant date fair value of the award on a straight-line basis over the requisite service period. The fair value of each option grant with only service-based conditions is estimated using the Black-Scholes pricing model. The fair value of each option grant with market and service-based conditions is estimated using a Monte Carlo simulation model. The fair value of each restricted stock unit is calculated based on the closing sale price of the Company’s common stock on the grant date. The determination of the fair value of the options on the grant date using the Black-Scholes pricing model and/or the Monte Carlo simulation model is affected by the Company’s stock price, as well as assumptions regarding a number of complex and subjective variables. Certain key variables include: the Company’s expected stock price volatility over the expected term of the awards; a risk-free interest rate; and any expected dividends. The Company estimates stock price volatility based on the historical volatility of the Company’s common stock and estimates the expected term of the awards based on the Company’s historical option exercises for similar types of stock option awards. The assumed risk-free interest rate is based on the yield on the measurement date of a zero not zero |
Fair Value of Financial Instruments, Policy [Policy Text Block] | (xii) Fair Value of Financial Instruments Financial instruments are categorized into a three three 1 3 not § Level 1: Observable inputs such as quoted prices in active markets; § Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and § Level 3: Unobservable inputs in which there is little or no |
Lessee, Leases [Policy Text Block] | (xiii) Leases HMS accounts for lease agreements as either operating or capital leases, depending on certain defined criteria. Lease costs are amortized on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives such as tenant improvement allowances, are capitalized and are treated as a reduction of rental expense over the term of the lease agreement. |
New Accounting Pronouncements, Policy [Policy Text Block] | (xiv) Recent Accounting Guidance Recently Adopted Accounting Guidance In May 2014, 2014 09, Revenue from Contracts with Customers 606 2014 09” 2014 09 January 1, 2018 not 2014 09 not In March 2016, No. 2016 09, Compensation – Stock Compensation 718 Improvements to Employee Share-Based Payment Accounting 2016 09” no 2016 09 December 15, 2016, fourth 2016 January 1, 2016, 2016. no January 1, 2016, $1.9 December 31, 2016. no 2016 In August 2016, No. 2016 15, Statements of Cash Flows 230 Classification of Certain Cash Receipts and Cash Payments 2016 15” 2016 15 December 15, 2017, January 1, 2018. not In January 2017, No. 2017 01, Business Combinations 805 Clarifying the Definition of a Business 2017 01” 2017 01 December 15, 2017, January 1, 2018. not In May 2017, No. 2017 09, Compensation – Stock Compensation 718 Scope of Modification Accounting 2017 09” 2017 09 not 1 2 3 2017 09 December 15, 2017, January 1, 2018. not In January 2017, No. 2017 04, Goodwill and Other 350 Simplifying the Test for Goodwill Impairment 2017 04” 2 2 1 2 not fourth 2018. not On August 17, 2018 No. 33 10532, Disclosure Update and Simplification November 5, 2018. not Recent Accounting Guidance Not In February 2016, No. 2016 02, 842 2016 02” 2016 02 2016 02 No. 2018 01, 842; No. 2018 10, 842, No. 2018 11, 12 2016 02 December 15, 2018 not January 1, 2019 not not 2016 02 2016 02 not 1 2 not January 1, 2019 $28 $31 not In June 2016, No. 2016 13, Financial Instruments – Credit Losses 2016 13” 2016 13 2016 13 not not 2016 13 December 15, 2019, not In June 2018, No. 2018 07, Compensation – Stock Compensation 718 Improvements to Nonemployee Share Based Payment Accounting 2018 07” 2018 07 2018 07 December 15, 2018, not |
Note 1 - Business and Summary_2
Note 1 - Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Property and Equipment, Estimated Useful Life [Table Text Block] | Property and Equipment Useful Life Equipment 2 to 5 Leasehold improvements 5 to 10 Furniture and fixtures 5 Capitalized software 3 to 10 Building and building improvements up to 39 |
Useful Lives of Intangible Assets [Table Text Block] | Intangible Assets Useful Life Customer relationships 7 to 15 Restrictive covenants 1 to 3 Trade names 1.5 to 7 Intellectual property 4 to 6 |
Note 2 - Revenue (Tables)
Note 2 - Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Coordination of Benefits $ 397,095 Payment Integrity 144,063 Total Population Management 57,132 Total $ 598,290 Commercial $ 323,150 State 233,921 Federal 41,219 Total $ 598,290 |
Note 4 - Acquisition (Tables)
Note 4 - Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash and cash equivalents $ 435 Accounts receivable 8,902 Prepaid expenses 1,427 Property and equipment 1,146 Intangible assets 76,240 Goodwill 107,754 Other assets 63 Accounts payable (2,620 ) Deferred tax liability (19,681 ) Other liabilities (2,057 ) Total purchase price $ 171,609 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Useful Life (in years) Customer relationships 15 $ 56,200 Intellectual property 6 19,600 Trade name 1.5 310 Restrictive covenants 1 130 Fair value of intangibles acquired $ 76,240 |
Business Combination, Separately Recognized Transactions [Table Text Block] | Other operating expenses - consulting fees $ 3,515 Other operating expenses - legal fees 832 Other operating expenses - transaction costs 185 Acquisition-related costs $ 4,532 |
Note 5 - Property and Equipme_2
Note 5 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 2018 2017 Equipment $ 95,350 $ 106,768 Leasehold improvements 7,547 8,357 Building 8,624 8,624 Building improvements 14,825 14,546 Land 2,769 2,769 Furniture and fixtures 9,404 10,352 Capitalized software 131,819 125,655 270,338 277,071 Less: accumulated depreciation and amortization (175,903 ) (178,490 ) Property and equipment, net $ 94,435 $ 98,581 December 31, 2018 2017 2016 Depreciation and amortization expenses related to property and equipment $ 33,254 $ 27,515 $ 24,882 |
Note 6 - Intangible Assets (Tab
Note 6 - Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period in Years December 31, 2018 Customer relationships $ 156,790 $ (104,740 ) $ 52,050 12.8 Trade names 16,246 (16,215 ) 31 0.7 Intellectual property 21,700 (6,670 ) 15,030 4.1 Restrictive covenants 263 (234 ) 29 0.7 Total $ 194,999 $ (127,859 ) $ 67,140 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period in Years December 31, 2017 Customer relationships $ 159,290 $ (89,106 ) $ 70,184 11.3 Trade names 16,246 (13,916 ) 2,330 1.0 Intellectual property 21,700 (2,874 ) 18,826 5.2 Restrictive covenants 263 (121 ) 142 1.3 Total $ 197,499 $ (106,017 ) $ 91,482 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, Amortization 2019 $ 9,195 2020 7,664 2021 7,197 2022 7,197 2023 4,822 Thereafter 31,065 Total $ 67,140 |
Note 7 - Accounts Payable, Ac_2
Note 7 - Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, 2018 December 31, 2017 Accounts payable, trade $ 12,394 $ 19,330 Accrued compensation and other 42,833 24,072 Accrued operating expenses 19,675 18,498 Total accounts payable, accrued expenses and other liabilities $ 74,902 $ 61,900 |
Note 8 - Income Taxes (Tables)
Note 8 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | December 31, 2018 2017 2016 Current tax expense: Federal $ 2,965 $ 17,008 $ 16,274 State (1,433 ) 3,201 2,929 Total current tax expense: 1,532 20,209 19,203 Deferred tax expense (benefit): Federal (2,650 ) (19,425 ) (7,115 ) State (854 ) (983 ) (253 ) Total deferred tax benefit: (3,504 ) (20,408 ) (7,368 ) Total income tax expense (benefit) $ (1,972 ) $ (199 ) $ 11,835 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | December 31, 2018 % 2017 % 2016 % Computed at federal statutory rate $ 11,134 21.0 $ 13,949 35.0 $ 17,315 35.0 State and local tax expense, net of federal benefit 2,367 4.5 2,226 5.6 2,448 5.0 Net permanent deduction and credit tax benefits from current year (1,143 ) (2.2 ) (1,513 ) (3.8 ) (1,509 ) (3.1 ) Net permanent deduction and credit tax benefits from prior years - - - - (6,213 ) (12.6 ) Net uncertain tax positions excluding current permanent deduction and credit benefits (3,756 ) (7.0 ) (373 ) (0.9 ) - - Subsidiary basis write off (3,423 ) (6.5 ) - - - - Equity compensation net tax windfall (2,890 ) (5.5 ) - - - - State tax apportionment changes (3,737 ) (7.0 ) - - - - Disallowed executive compensation 682 1.3 - - - - Tax Reform - revaluation of deferrals - - (15,130 ) (38.0 ) - - Acquisition adjustments (1,226 ) (2.3 ) (1,003 ) (2.5 ) - - Acquisition costs - - 697 1.7 203 0.4 Other, net 20 - 948 2.4 (409 ) (0.8 ) Total income tax expense $ (1,972 ) (3.7 ) $ (199 ) (0.5 ) $ 11,835 23.9 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2018 2017 Deferred tax assets: Stock-based compensation $ 9,545 $ 9,980 Goodwill and intangible assets 5,874 6,524 Allowance for doubtful accounts 3,537 3,822 Deferred rent 696 909 Tenant improvements 569 669 Estimated liability for appeals 5,632 7,775 Net operating loss carry-forwards 1,527 3,358 Tax credit carry-forwards 4,076 3,667 Property and equipment 49 256 Accrued expenses and other 7,839 3,615 Total deferred tax assets 39,344 40,575 Deferred tax liabilities: Goodwill and intangible assets 43,400 48,186 Section 481(a) adjustment 5,073 7,413 Prepaid expenses 668 624 Capitalized software cost 8,688 6,341 Total deferred tax liabilities 57,829 62,564 Total net deferred tax liabilities $ 18,485 $ 21,989 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 2018 2017 Unrecognized tax benefits at January 1 $ 8,234 $ 7,433 Additions for tax positions taken during prior periods 399 599 Additions for tax positions taken during current period including amended prior years 360 1,174 Reductions relating to settlements with taxing authorities (2,227 ) - Reductions related to the expiration of statutes of limitations (1,927 ) (972 ) Unrecognized tax benefits at December 31 $ 4,839 $ 8,234 |
Note 9 - Estimated Liability _2
Note 9 - Estimated Liability for Appeals (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Activity in the Estimated Liability for Appeals [Table Text Block] | Original RAC 4 Commercial contracts Total Balance at December 31, 2016 $ 28,427 $ - $ 2,328 $ 30,755 Provision 2,054 - 2,729 4,783 Appeals found in providers favor (2,665 ) - (2,086 ) (4,751 ) Balance at December 31, 2017 $ 27,816 $ - $ 2,971 $ 30,787 Provision 108 20 2,038 2,166 Appeals found in providers favor (108 ) - (2,686 ) (2,794 ) Release of estimated liability (8,436 ) - - (8,436 ) Balance at December 31, 2018 $ 19,380 $ 20 $ 2,323 $ 21,723 |
Note 10 - Credit Agreement (Tab
Note 10 - Credit Agreement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Interest Expense and Commitment Fees on Debt Instrument [Table Text Block] | Years ended December 31, 2018 2017 2016 Interest expense $ 9,294 $ 7,170 $ 4,837 Commitment fees 1,189 1,359 1,518 |
Note 11 - Equity (Tables)
Note 11 - Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Class of Treasury Stock [Table Text Block] | Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Program Maximum Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program January 1, 2018 to March 31, 2018 383,801 $ 15.50 383,801 $ 29,933,055 April 1, 2018 to June 30, 2018 - - - - July 1, 2018 to September 30, 2018 - - - - October 1, 2018 to December 31, 2018 - - - - Total 383,801 $ 15.50 383,801 $ 29,933,055 |
Note 13 - Stock-based Compens_2
Note 13 - Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Years ended December 31, 2018 2017 2016 Cost of services-compensation $ 7,421 $ 7,354 $ 3,805 Selling, general and administrative 14,086 16,789 9,472 Total $ 21,507 $ 24,143 $ 13,277 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Options Weighted Average Exercise Price Weighted Average- Remaining Contractual Terms Aggregate- Intrinsic Value Outstanding balance at December 31, 2017 5,554 $ 17.35 Granted 1,010 19.58 Exercised (2,017 ) 19.14 Forfeitures (114 ) 17.74 Expired (31 ) 22.34 Outstanding balance at December 31, 2018 4,402 17.07 5.80 $ 48,339 Expected to vest at December 31, 2018 1,481 $ 18.60 8.22 $ 14,119 Exercisable at December 31, 2018 2,370 $ 15.87 3.83 $ 29,068 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year ended December 31, 2018 2017 2016 Expected dividend yield - - - Risk-free interest rate 2.7 % 1.8 % 1.2 % Expected volatility 42.4 % 44.2 % 44.0 % Expected life (years) 6.0 5.0 4.9 Year ended December 31, 2018 2017 2016 Expected dividend yield - - - Risk-free interest rate - 2.2 % 1.6 % Expected volatility - 52.5 % 40.5 % Expected life (years) - 6.5 4.9 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Number of Units Weighted Average Grant Date Fair Value per Unit Outstanding balance at December 31, 2017 1,346 $ 17.65 Granted 766 16.80 Vesting of restricted stock units, net of units withheld for taxes (371 ) 17.06 Units withheld for taxes (163 ) 17.06 Forfeitures (90 ) 17.31 Outstanding balance at December 31, 2018 1,488 $ 17.60 |
Note 14 - Earnings Per Share (T
Note 14 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years ended December 31, 2018 2017 2016 Net income $ 54,989 $ 40,054 $ 37,636 Weighted average common shares outstanding-basic 83,625 83,821 84,221 Plus: net effect of dilutive stock options and restricted stock units 2,519 1,808 2,766 Weighted average common shares outstanding-diluted 86,144 85,629 86,987 Net income per common share-basic $ 0.66 $ 0.48 $ 0.45 Net income per common share-diluted $ 0.64 $ 0.47 $ 0.43 |
Note 15 - Commitments and Con_2
Note 15 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Future Minimum Lease Payments for Leases [Table Text Block] | Operating Lease Payments 2019 $ 5,778 2020 5,420 2021 3,742 2022 2,531 2023 2,236 Thereafter 2,947 Total $ 22,654 |
Note 18 - Quarterly Financial_2
Note 18 - Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended Revenue $ 141,425 $ 146,791 $ 154,246 $ 155,828 $ 598,290 Operating income $ 11,922 $ (763 ) $ 24,231 $ 27,848 $ 63,238 Net income $ 6,391 $ (3,367 ) $ 18,574 $ 33,391 $ 54,989 Net income per common share - basic $ 0.08 $ (0.04 ) $ 0.22 $ 0.40 $ 0.66 Net income per common share - diluted $ 0.07 $ (0.04 ) $ 0.22 $ 0.38 $ 0.64 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended Revenue $ 113,733 $ 133,313 $ 125,673 $ 148,493 $ 521,212 Operating income $ 3,943 $ 14,361 $ 12,861 $ 19,266 $ 50,431 Net income $ 1,442 $ 6,517 $ 6,372 $ 25,723 $ 40,054 Net income per common share - basic $ 0.02 $ 0.08 $ 0.08 $ 0.30 $ 0.48 Net income per common share - diluted $ 0.02 $ 0.08 $ 0.07 $ 0.30 $ 0.47 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Valuation and Qualifying Accounts Disclosure [Table Text Block] | Balance at Beginning of Year Provision Recoveries Charge-offs Balance at End of Year Year ended December 31, 2016 $ 11,464 $ 21,583 $ 108 $ (22,383 ) $ 10,772 Year ended December 31, 2017 10,772 20,233 - (16,206 ) 14,799 Year ended December 31, 2018 14,799 20,453 - (21,569 ) 13,683 Balance at Beginning of Year Provision Appeals found in providers favor Release of estimated liability Balance at End of Year Year ended December 31, 2016 $ 12,801 $ 721 $ (2,396 ) $ - $ 11,126 Year ended December 31, 2017 11,126 83 (2,665 ) - 8,544 Year ended December 31, 2018 8,544 - (108 ) (8,436 ) - |
Note 1 - Business and Summary_3
Note 1 - Business and Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Number of Businesses | 1 | ||
Maximum Balance Per Bank Account Insured by Federal Deposit Insurance Corporation | $ 250,000 | ||
Impairment of Intangible Assets (Excluding Goodwill), Total | 0 | $ 0 | $ 0 |
Goodwill, Impairment Loss | 0 | 0 | 0 |
Goodwill, Period Increase (Decrease), Total | 0 | ||
Accounts Receivable, Net, Current, Total | 206,772,000 | 189,460,000 | |
Allowance for Doubtful Accounts Receivable, Current, Ending Balance | $ 13,683,000 | $ 14,799,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||
Recognition of Net Excess Tax Benefits in the Provision for Income Taxes Rather Than Paid-in Capital [Member] | |||
Current Period Reclassification Adjustment | $ 1,900,000 | ||
The 2016 Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 4,758,398 | ||
The 2016 Omnibus Plan [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
The 2016 Omnibus Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
The 2016 Omnibus Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Note 1 - Business and Summary_4
Note 1 - Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Furniture and Fixtures [Member] | |
Equipment (Year) | 5 years |
Building and Building Improvements [Member] | |
Equipment (Year) | 39 years |
Minimum [Member] | Equipment [Member] | |
Equipment (Year) | 2 years |
Minimum [Member] | Leasehold Improvements [Member] | |
Equipment (Year) | 5 years |
Minimum [Member] | Software and Software Development Costs [Member] | |
Equipment (Year) | 3 years |
Maximum [Member] | Equipment [Member] | |
Equipment (Year) | 5 years |
Maximum [Member] | Leasehold Improvements [Member] | |
Equipment (Year) | 10 years |
Maximum [Member] | Software and Software Development Costs [Member] | |
Equipment (Year) | 10 years |
Note 1 - Business and Summary_5
Note 1 - Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Intangible Assets (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer Relationships [Member] | ||
Intangible assets, estimated useful life (Year) | 12 years 292 days | 11 years 109 days |
Customer Relationships [Member] | Minimum [Member] | ||
Intangible assets, estimated useful life (Year) | 7 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Intangible assets, estimated useful life (Year) | 15 years | |
Restrictive Covenant [Member] | ||
Intangible assets, estimated useful life (Year) | 255 days | 1 year 109 days |
Restrictive Covenant [Member] | Minimum [Member] | ||
Intangible assets, estimated useful life (Year) | 1 year | |
Restrictive Covenant [Member] | Maximum [Member] | ||
Intangible assets, estimated useful life (Year) | 3 years | |
Trade Names [Member] | ||
Intangible assets, estimated useful life (Year) | 255 days | 1 year |
Trade Names [Member] | Minimum [Member] | ||
Intangible assets, estimated useful life (Year) | 1 year 182 days | |
Trade Names [Member] | Maximum [Member] | ||
Intangible assets, estimated useful life (Year) | 7 years | |
Intellectual Property [Member] | ||
Intangible assets, estimated useful life (Year) | 4 years 36 days | 5 years 73 days |
Intellectual Property [Member] | Minimum [Member] | ||
Intangible assets, estimated useful life (Year) | 4 years | |
Intellectual Property [Member] | Maximum [Member] | ||
Intangible assets, estimated useful life (Year) | 6 years |
Note 2 - Revenue (Details Textu
Note 2 - Revenue (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Retained Earnings (Accumulated Deficit), Ending Balance | $ 422,235 | $ 366,164 |
Contract with Customer, Liability, Total | 5,600 | $ 6,400 |
Contract with Customer, Liability, Revenue Recognized | 5,300 | |
Accounting Standards Update 2014-09 [Member] | ||
Retained Earnings (Accumulated Deficit), Ending Balance | $ 1,100 | |
Minimum [Member] | ||
Contracts With Customers, Term | 1 year | |
Maximum [Member] | ||
Contracts With Customers, Term | 5 years |
Note 2 - Revenue - Revenues Dis
Note 2 - Revenue - Revenues Disaggregated by Revenue Source and Market (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | [2] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 155,828 | $ 154,246 | $ 146,791 | $ 141,425 | $ 148,493 | $ 125,673 | $ 133,313 | $ 113,733 | $ 598,290 | $ 521,212 | $ 489,720 | ||
Sales Channel, Commercial [Member] | |||||||||||||
Revenues | 323,150 | ||||||||||||
Sales Channel, State [Member] | |||||||||||||
Revenues | 233,921 | ||||||||||||
Sales Channel, Federal [Member] | |||||||||||||
Revenues | 41,219 | ||||||||||||
Coordination of Benefits [Member] | |||||||||||||
Revenues | 397,095 | ||||||||||||
Payment Integrity [Member] | |||||||||||||
Revenues | 144,063 | ||||||||||||
Total Population Management [Member] | |||||||||||||
Revenues | $ 57,132 | ||||||||||||
[1] | Second quarter 2018 results include the Company's entry into the Settlement Agreement for the payment of $20 million, as described in Note 14. | ||||||||||||
[2] | Fourth quarter 2017 results include a non-cash tax benefit of $15.1 million due to the revaluation of the Company’s deferred tax balances pursuant to the tax rate reduction included in the 2017 Tax Act. |
Note 3 - Fair Value of Financ_2
Note 3 - Fair Value of Financial Instruments (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Contingent Consideration Liability [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | $ 0 | $ 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | 0 |
Other Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Business Combination, Contingent Consideration, Liability, Total | $ 0 | $ 35,000 |
Note 4 - Acquisition (Details T
Note 4 - Acquisition (Details Textual) - Eliza Holding Corp [Member] - USD ($) $ in Millions | Apr. 17, 2017 | Sep. 02, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Payments to Acquire Businesses, Gross | $ 171.6 | |||
Business Acquisition, Funding Source, Cash on Hand, Percentage | 75.00% | |||
Business Acquisition, Funding Source, Existing Credit Line, Percentage | 25.00% | |||
Business Acquisition, Pro Forma Revenue | $ 51.9 | $ 30.4 | ||
Business Combination, Consideration Transferred, Total | $ 24.2 |
Note 4 - Acquisition - Prelimin
Note 4 - Acquisition - Preliminary Allocation of the Purchase Price (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 17, 2017 |
Goodwill | $ 487,617 | $ 487,617 | |
Eliza Holding Corp [Member] | |||
Cash and cash equivalents | $ 435 | ||
Accounts receivable | 8,902 | ||
Prepaid expenses | 1,427 | ||
Property and equipment | 1,146 | ||
Intangible assets | 76,240 | ||
Goodwill | 107,754 | ||
Other assets | 63 | ||
Accounts payable | (2,620) | ||
Deferred tax liability | (19,681) | ||
Other liabilities | (2,057) | ||
Total purchase price | $ 171,609 |
Note 4 - Acquisition - Prelim_2
Note 4 - Acquisition - Preliminary Purchase Price Allocated to the Intangibles Acquired (Details) - Eliza Holding Corp [Member] $ in Thousands | Apr. 17, 2017USD ($) |
Fair value of intangibles acquired | $ 76,240 |
Customer Relationships [Member] | |
Intangibles acquired, useful life (Year) | 15 years |
Fair value of intangibles acquired | $ 56,200 |
Intellectual Property [Member] | |
Intangibles acquired, useful life (Year) | 6 years |
Fair value of intangibles acquired | $ 19,600 |
Trade Names [Member] | |
Intangibles acquired, useful life (Year) | 1 year 182 days |
Fair value of intangibles acquired | $ 310 |
Restrictive Covenant [Member] | |
Intangibles acquired, useful life (Year) | 1 year |
Fair value of intangibles acquired | $ 130 |
Note 4 - Acquisition - Acquisit
Note 4 - Acquisition - Acquisition Costs (Details) - Cost of Services [Member] - Eliza Holding Corp [Member] $ in Thousands | Apr. 17, 2017USD ($) |
Acquisition-related costs | $ 4,532 |
Other Operating Expenses, Consulting Fees [Member] | |
Acquisition-related costs | 3,515 |
Other Operating Expenses, Legal Fees [Member] | |
Acquisition-related costs | 832 |
Other Operating Expenses, Transaction Costs [Member] | |
Acquisition-related costs | $ 185 |
Note 5 - Property and Equipme_3
Note 5 - Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property and equipment, gross | $ 270,338 | $ 277,071 | |
Less: accumulated depreciation and amortization | (175,903) | (178,490) | |
Property and equipment, net | 94,435 | 98,581 | |
Depreciation and amortization expenses related to property and equipment | 33,254 | 27,515 | $ 24,882 |
Equipment [Member] | |||
Property and equipment, gross | 95,350 | 106,768 | |
Leasehold Improvements [Member] | |||
Property and equipment, gross | 7,547 | 8,357 | |
Building [Member] | |||
Property and equipment, gross | 8,624 | 8,624 | |
Building Improvements [Member] | |||
Property and equipment, gross | 14,825 | 14,546 | |
Land [Member] | |||
Property and equipment, gross | 2,769 | 2,769 | |
Furniture and Fixtures [Member] | |||
Property and equipment, gross | 9,404 | 10,352 | |
Software and Software Development Costs [Member] | |||
Property and equipment, gross | $ 131,819 | $ 125,655 |
Note 6 - Intangible Assets (Det
Note 6 - Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amortization of Intangible Assets, Total | $ 24,342 | $ 22,555 | $ 20,164 |
Note 6 - Intangible Assets - Su
Note 6 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Gross Carrying Amount | $ 194,999 | $ 197,499 |
Accumulated Amortization | (127,859) | (106,017) |
Net Carrying Amount | 67,140 | 91,482 |
Customer Relationships [Member] | ||
Gross Carrying Amount | 156,790 | 159,290 |
Accumulated Amortization | (104,740) | (89,106) |
Net Carrying Amount | $ 52,050 | $ 70,184 |
Intangible assets, estimated useful life (Year) | 12 years 292 days | 11 years 109 days |
Trade Names [Member] | ||
Gross Carrying Amount | $ 16,246 | $ 16,246 |
Accumulated Amortization | (16,215) | (13,916) |
Net Carrying Amount | $ 31 | $ 2,330 |
Intangible assets, estimated useful life (Year) | 255 days | 1 year |
Intellectual Property [Member] | ||
Gross Carrying Amount | $ 21,700 | $ 21,700 |
Accumulated Amortization | (6,670) | (2,874) |
Net Carrying Amount | $ 15,030 | $ 18,826 |
Intangible assets, estimated useful life (Year) | 4 years 36 days | 5 years 73 days |
Restrictive Covenant [Member] | ||
Gross Carrying Amount | $ 263 | $ 263 |
Accumulated Amortization | (234) | (121) |
Net Carrying Amount | $ 29 | $ 142 |
Intangible assets, estimated useful life (Year) | 255 days | 1 year 109 days |
Note 6 - Intangible Assets - Es
Note 6 - Intangible Assets - Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
2,019 | $ 9,195 | |
2,020 | 7,664 | |
2,021 | 7,197 | |
2,022 | 7,197 | |
2,023 | 4,822 | |
Thereafter | 31,065 | |
Total | $ 67,140 | $ 91,482 |
Note 7 - Accounts Payable, Ac_3
Note 7 - Accounts Payable, Accrued Expenses and Other Liabilities - Summary of Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts payable, trade | $ 12,394 | $ 19,330 |
Accrued compensation and other | 42,833 | 24,072 |
Accrued operating expenses | 19,675 | 18,498 |
Total accounts payable, accrued expenses and other liabilities | $ 74,902 | $ 61,900 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent, Total | (3.70%) | (0.50%) | 23.90% |
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Amount | $ 6,200 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 4,800 | $ 8,200 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 700 | 600 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | 100 | 20 | $ 200 |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 1,700 | ||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 360 | $ 1,174 | |
Operating Loss Carryforwards, Total | $ 4,100 | ||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Tax Examination, Year under Examination | 2013 2014 |
Note 8 - Income Taxes - Summary
Note 8 - Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax expense: | |||
Federal | $ 2,965 | $ 17,008 | $ 16,274 |
State | (1,433) | 3,201 | 2,929 |
Total current tax expense: | 1,532 | 20,209 | 19,203 |
Deferred tax expense (benefit): | |||
Federal | (2,650) | (19,425) | (7,115) |
State | (854) | (983) | (253) |
Total deferred tax benefit: | (3,504) | (20,408) | (7,368) |
Total income tax expense (benefit) | $ (1,972) | $ (199) | $ 11,835 |
Note 8 - Income Taxes - Reconci
Note 8 - Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Computed at federal statutory rate | $ 11,134 | $ 13,949 | $ 17,315 |
Computed at federal statutory rate, percentage | 21.00% | 35.00% | 35.00% |
State and local tax expense, net of federal benefit | $ 2,367 | $ 2,226 | $ 2,448 |
State and local tax expense, net of federal benefit, percentage | 4.50% | 5.60% | 5.00% |
Net permanent deduction and credit tax benefits from current year | $ (1,143) | $ (1,513) | $ (1,509) |
Net permanent deduction and credit tax benefits from current year, percentage | (2.20%) | (3.80%) | (3.10%) |
Net permanent deduction and credit tax benefits from prior years | $ (6,213) | ||
Net permanent deduction and credit tax benefits from prior years, percentage | (12.60%) | ||
Net uncertain tax positions excluding current permanent deduction and credit benefits | $ (3,756) | $ (373) | |
Net uncertain tax positions excluding current permanent deduction and credit benefits, percentage | (7.00%) | (0.90%) | |
Subsidiary basis write off | $ (3,423) | ||
Subsidiary basis write off, percentage | (6.50%) | ||
Equity compensation net tax windfall | $ (2,890) | ||
Equity compensation net tax windfall, percentage | (5.50%) | ||
State tax apportionment changes | $ (3,737) | ||
State tax apportionment changes, percentage | (7.00%) | ||
Disallowed executive compensation | $ 682 | ||
Disallowed executive compensation, percentage | 1.30% | ||
Tax Reform - revaluation of deferrals | $ (15,130) | ||
Tax Reform - Revaluation of Deferrals, precentage | (38.00%) | ||
Acquisition adjustments | $ (1,226) | $ (1,003) | |
Acquisition adjustments, percentage | (2.30%) | (2.50%) | |
Acquisition costs | $ 697 | $ 203 | |
Acquisition costs, precentage | 1.70% | 0.40% | |
Other, net | $ 20 | $ 948 | $ (409) |
Other, net, percentage | 2.40% | (0.80%) | |
Total income tax expense (benefit) | $ (1,972) | $ (199) | $ 11,835 |
Total income tax expense, percentage | (3.70%) | (0.50%) | 23.90% |
Note 8 - Income Taxes - Summa_2
Note 8 - Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Stock-based compensation | $ 9,545 | $ 9,980 |
Goodwill and intangible assets | 5,874 | 6,524 |
Allowance for doubtful accounts | 3,537 | 3,822 |
Deferred rent | 696 | 909 |
Tenant improvements | 569 | 669 |
Estimated liability for appeals | 5,632 | 7,775 |
Net operating loss carry-forwards | 1,527 | 3,358 |
Tax credit carry-forwards | 4,076 | 3,667 |
Property and equipment | 49 | 256 |
Accrued expenses and other | 7,839 | 3,615 |
Total deferred tax assets | 39,344 | 40,575 |
Deferred tax liabilities: | ||
Goodwill and intangible assets | 43,400 | 48,186 |
Section 481(a) adjustment | 5,073 | 7,413 |
Prepaid expenses | 668 | 624 |
Capitalized software cost | 8,688 | 6,341 |
Total deferred tax liabilities | 57,829 | 62,564 |
Total net deferred tax liabilities | $ 18,485 | $ 21,989 |
Note 8 - Income Taxes - Recon_2
Note 8 - Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Unrecognized tax benefits at January 1 | $ 8,234 | $ 7,433 |
Additions for tax positions taken during prior periods | 399 | 599 |
Additions for tax positions taken during current period including amended prior years | 360 | 1,174 |
Reductions relating to settlements with taxing authorities | (2,227) | |
Reductions related to the expiration of statutes of limitations | (1,927) | (972) |
Unrecognized tax benefits at December 31 | $ 4,839 | $ 8,234 |
Note 9 - Estimated Liability _3
Note 9 - Estimated Liability for Appeals (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Estimated Liability for Appeals Gain (Loss) Included in Earnings | $ 8,400 | $ 8,436 |
Note 9 - Estimated Liability _4
Note 9 - Estimated Liability for Appeals - Activity in Estimated Liability for Appeals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Balance | $ 30,787 | $ 30,787 | $ 30,755 | |
Provision | 2,166 | 4,783 | ||
Appeals found in providers favor | (2,794) | (4,751) | ||
Release of estimated liability | (8,400) | (8,436) | ||
Balance | 21,723 | 30,787 | 30,755 | |
Original RAC Contract [Member] | ||||
Balance | 27,816 | 27,816 | 28,427 | |
Provision | 108 | 2,054 | ||
Appeals found in providers favor | (108) | (2,665) | ||
Release of estimated liability | (8,436) | |||
Balance | 19,380 | 27,816 | 28,427 | |
RAC 4 Contract [Member] | ||||
Balance | ||||
Provision | 20 | |||
Appeals found in providers favor | ||||
Release of estimated liability | ||||
Balance | 20 | |||
Commercial Contracts [Member] | ||||
Balance | $ 2,971 | 2,971 | 2,328 | |
Provision | 2,038 | 2,729 | ||
Appeals found in providers favor | (2,686) | (2,086) | ||
Release of estimated liability | ||||
Balance | $ 2,323 | $ 2,971 | $ 2,328 |
Note 10 - Credit Agreement (Det
Note 10 - Credit Agreement (Details Textual) $ in Thousands | Dec. 19, 2017USD ($) | May 31, 2013USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Amortization of Debt Issuance Costs | $ 564 | $ 2,258 | $ 2,083 | ||
Credit Agreement [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | ||||
Line of Credit Facility, Expiration Period | 5 years | 5 years | |||
Debt Agreement, Maximum Borrowing Capacity | $ 120,000 | ||||
Debt Agreement, Maximum Borrowing Capacity, Percent of Consolidated EBITDA | 100.00% | ||||
Debt Issuance Costs, Net, Total | 2,300 | ||||
Credit Agreement [Member] | Letter of Credit [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | ||||
Credit Agreement [Member] | Swingline Loans [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000 | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||
Repayments of Long-term Lines of Credit | 0 | ||||
Long-term Line of Credit, Total | 240,000 | ||||
Debt Instrument, Secured Leverage Ratio | 5.25 | ||||
Debt Issuance Costs, Net, Total | 2,200 | 2,800 | |||
Amortization of Debt Issuance Costs | 600 | $ 2,300 | $ 2,100 | ||
Letters of Credit Outstanding, Amount | $ 6,500 | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Federal Funds Effective Swap Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | |||||
Debt Instrument, Covenant, Interest Coverage Ratio | 3 | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | One-month LIBOR Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||||
Debt Instrument, Secured Leverage Ratio | 3 | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Through December 2019 [Member] | |||||
Debt Instrument, Secured Leverage Ratio | 4.75 | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | From and After January 2020 [Member] | |||||
Debt Instrument, Secured Leverage Ratio | 4.25 | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | One-month LIBOR Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Note 10 - Credit Agreement - Su
Note 10 - Credit Agreement - Summary of Interest Expense and Commitment Fees on Unused Portion of Revolving Credit Facility (Details) - Revolving Credit Facility [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest expense | $ 9,294 | $ 7,170 | $ 4,837 |
Commitment fees | $ 1,189 | $ 1,359 | $ 1,518 |
Note 11 - Equity (Details Textu
Note 11 - Equity (Details Textual) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued, Total | 0 | 0 |
Note 11 - Equity - Summary of R
Note 11 - Equity - Summary of Repurchases of Common Stock (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | |||||
Total Number of Shares Purchased (in shares) | 383,801 | 383,801 | |||||||
Average Price Paid Per Share (in dollars per share) | $ 15.50 | $ 15.50 | |||||||
Maximum Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program | $ 29,933,055 | $ 29,933,055 | $ 29,933,055 | ||||||
Total Number of Shares Purchased (in shares) | 383,801 | 383,801 | |||||||
Publicly Announced Share Repurchase Program [Member] | |||||||||
Total Number of Shares Purchased (in shares) | [1] | [1] | [1] | 383,801 | [1] | 383,801 | |||
Total Number of Shares Purchased (in shares) | [1] | [1] | [1] | 383,801 | [1] | 383,801 | |||
[1] | Represents shares repurchased through the Company's Share Repurchase Program publicly announced in November 2017. |
Note 12 - Employee Benefit Pl_2
Note 12 - Employee Benefit Plan (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 60.00% | ||
Defined Contribution Plan, Cost | $ 7.3 | $ 5.9 | $ 4.8 |
Amount Contributed on Percentage of Pay, Tier One [Member] | The 401(k) Plan [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | 100.00% | 100.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% | 3.00% | 3.00% |
Amount Contributed on Percentage of Pay, Tier Two [Member] | The 401(k) Plan [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | 50.00% | 50.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 1.00% | 2.00% | 2.00% |
Note 13 - Stock-based Compens_3
Note 13 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense (Benefit), Total | $ (1,972) | $ (199) | $ 11,835 |
Allocated Share-based Compensation Expense, Total | $ 21,507 | $ 24,143 | $ 13,277 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance | 1,999,069 | 2,372,682 | |
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price, Ending Balance | $ 7.27 | $ 6.39 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 7.52 | 7.66 | $ 5.55 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | 6.18 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $ 6.86 | $ 5.24 | $ 6.26 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2,017,442 | 172,326 | 510,512 |
Proceeds from Stock Options Exercised | $ 38,362 | $ 2,720 | $ 2,940 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 27,600 | 500 | 6,300 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 5,500 | ||
Employee Stock Option [Member] | |||
Income Tax Expense (Benefit), Total | 9,100 | 4,000 | 4,100 |
Allocated Share-based Compensation Expense, Total | $ 9,600 | 10,300 | 6,900 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 328 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Allocated Share-based Compensation Expense, Total | $ 11,900 | 13,800 | 6,400 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 317 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 1,259,003 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 9,200 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 9,900 | $ 9,500 | $ 6,800 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 17.06 | $ 15.39 | $ 18.64 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 17.31 | $ 15.37 | $ 16.95 |
Note 13 - Stock-based Compens_4
Note 13 - Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allocated Share-based Compensation Expense | $ 21,507 | $ 24,143 | $ 13,277 |
Cost of Sales [Member] | |||
Allocated Share-based Compensation Expense | 7,421 | 7,354 | 3,805 |
Selling, General and Administrative Expenses [Member] | |||
Allocated Share-based Compensation Expense | $ 14,086 | $ 16,789 | $ 9,472 |
Note 13 - Stock-based Compens_5
Note 13 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning Balance, Shares (in shares) | 5,554,000 | ||
Beginning Balance, Weighted Average Exercise Price (in dollars per share) | $ 17.35 | ||
Granted, Shares (in shares) | 1,010,000 | ||
Granted, Weighted Average Exercise Price (in dollars per share) | $ 19.58 | ||
Exercised, Shares (in shares) | (2,017,442) | (172,326) | (510,512) |
Exercised, Weighted Average Exercise Price (in dollars per share) | $ 19.14 | ||
Forfeitures, Shares (in shares) | (114,000) | ||
Forfeitures, Weighted Average Exercise Price (in dollars per share) | $ 17.74 | ||
Expired, Shares (in shares) | (31,000) | ||
Expired, Weighted Average Exercise Price (in dollars per share) | $ 22.34 | ||
Ending Balance, Shares (in shares) | 4,402,000 | 5,554,000 | |
Ending Balance, Weighted Average Exercise Price (in dollars per share) | $ 17.07 | $ 17.35 | |
Ending Balance, Weighted Average Remaining Contractual Terms (Year) | 5 years 292 days | ||
Outstanding, Aggregate intrinsic value | $ 48,339 | ||
Expected to Vest, Shares (in shares) | 1,481,000 | ||
Expected to Vest, Weighted Average Exercise Price (in dollars per share) | $ 18.60 | ||
Expected to Vest, Weighted Average Remaining Contractual Terms (Year) | 8 years 80 days | ||
Expected to Vest, Aggregate Intrinsic Value | $ 14,119 | ||
Exercisable, Shares (in shares) | 2,370,000 | ||
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 15.87 | ||
Exercisable, Weighted Average Remaining Contractual Terms (Year) | 3 years 302 days | ||
Exercisable, Aggregate Intrinsic Value | $ 29,068 |
Note 13 - Stock-based Compens_6
Note 13 - Stock-based Compensation - Weighted Average Assumptions Used in Valuation of Stock Options (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expected dividend yield | 0.00% | ||
Employee Stock Option [Member] | Black Scholes Model [Member] | |||
Expected dividend yield | |||
Risk-free interest rate | 2.70% | 1.80% | 1.20% |
Expected volatility | 42.40% | 44.20% | 44.00% |
Expected life (Year) | 6 years | 5 years | 4 years 328 days |
Employee Stock Option [Member] | Monte Carlo Model [member] | |||
Expected dividend yield | |||
Risk-free interest rate | 2.20% | 1.60% | |
Expected volatility | 52.50% | 40.50% | |
Expected life (Year) | 6 years 182 days | 4 years 328 days |
Note 13 - Stock-based Compens_7
Note 13 - Stock-based Compensation - Summary of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning balance, shares (in shares) | 1,346 | ||
Beginning balance, weighted average grant date fair value per unit (in dollars per share) | $ 17.65 | ||
Granted, shares (in shares) | 766 | ||
Granted, weighted average grant date fair value per unit (in dollars per share) | $ 16.80 | ||
Vesting of restricted stock units, net of units withheld for taxes (in shares) | (371) | ||
Vesting of restricted stock units, net of units withheld for taxes, weighted average grant date fair value per unit (in dollars per share) | $ 17.06 | $ 15.39 | $ 18.64 |
Units withheld for taxes (in shares) | (163) | ||
Units withheld for taxes, weighted average grant date fair value per unit (in dollars per share) | $ 17.06 | ||
Forfeitures, shares (in shares) | (90) | ||
Forfeitures, weighted average grant date fair value per unit (in dollars per share) | $ 17.31 | $ 15.37 | $ 16.95 |
Ending balance, shares (in shares) | 1,488 | 1,346 | |
Ending balance, weighted average grant date fair value per unit (in dollars per share) | $ 17.60 | $ 17.65 |
Note 14 - Earnings Per Share (D
Note 14 - Earnings Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 804,959 | 2,646,100 | 2,070,771 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 31,155 | 46,651 |
Note 14 - Earnings Per Share -
Note 14 - Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | [2] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 33,391 | $ 18,574 | $ (3,367) | $ 6,391 | $ 25,723 | $ 6,372 | $ 6,517 | $ 1,442 | $ 54,989 | $ 40,054 | $ 37,636 | ||
Basic (in shares) | 83,625 | 83,821 | 84,221 | ||||||||||
Plus: net effect of dilutive stock options and restricted stock units (in shares) | 2,519 | 1,808 | 2,766 | ||||||||||
Weighted average common shares outstanding-diluted (in shares) | 86,144 | 85,088 | 86,987 | ||||||||||
Net income (loss) per common share - basic (in dollars per share) | $ 0.40 | $ 0.22 | $ (0.04) | $ 0.08 | $ 0.30 | $ 0.08 | $ 0.08 | $ 0.02 | $ 0.66 | $ 0.48 | $ 0.45 | ||
Net income (loss) per common share - diluted (in dollars per share) | $ 0.38 | $ 0.22 | $ (0.04) | $ 0.07 | $ 0.30 | $ 0.07 | $ 0.08 | $ 0.02 | $ 0.64 | $ 0.47 | $ 0.43 | ||
[1] | Second quarter 2018 results include the Company's entry into the Settlement Agreement for the payment of $20 million, as described in Note 14. | ||||||||||||
[2] | Fourth quarter 2017 results include a non-cash tax benefit of $15.1 million due to the revaluation of the Company’s deferred tax balances pursuant to the tax rate reduction included in the 2017 Tax Act. |
Note 15 - Commitments and Con_3
Note 15 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Jun. 27, 2018 | Nov. 03, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Operating Leases, Rent Expense, Net, Total | $ 3.6 | $ 5.1 | $ 5 | |||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 8.3 | |||||
Suit Against HMS Holdings Related to the Acquisition of Allied Management Group [Member] | ||||||
Loss Contingency, Damages Awarded, Value | $ 60 | |||||
Litigation Settlement, Amount Awarded to Other Party | $ 20 | $ 20 |
Note 15 - Commitments and Con_4
Note 15 - Commitments and Contingencies - Minimum Annual Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating lease payments, 2019 | $ 5,778 |
Operating lease payments, 2020 | 5,420 |
Operating lease payments, 2021 | 3,742 |
Operating lease payments, 2022 | 2,531 |
Operating lease payments, 2023 | 2,236 |
Operating lease payments, Thereafter | 2,947 |
Total | $ 22,654 |
Note 16 - Customer Concentrat_2
Note 16 - Customer Concentration (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Ten Largest Customers [Member] | |||
Concentration Risk, Percentage | 41.40% | 39.50% | 40.60% |
Note 17 - Subsequent Events (De
Note 17 - Subsequent Events (Details Textual) - Subsequent Event [Member] $ in Millions | Feb. 14, 2019USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award, Authorized Amount | $ 21.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Note 18 - Quarterly Financial_3
Note 18 - Quarterly Financial Data (Unaudited) (Details Textual) - USD ($) $ in Millions | Jun. 27, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (15.1) | ||
Suit Against HMS Holdings Related to the Acquisition of Allied Management Group [Member] | |||
Litigation Settlement, Amount Awarded to Other Party | $ 20 | $ 20 |
Note 18 - Quarterly Financial_4
Note 18 - Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | [2] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 155,828 | $ 154,246 | $ 146,791 | $ 141,425 | $ 148,493 | $ 125,673 | $ 133,313 | $ 113,733 | $ 598,290 | $ 521,212 | $ 489,720 | ||
Operating income | 27,848 | 24,231 | (763) | 11,922 | 19,266 | 12,861 | 14,361 | 3,943 | 63,238 | 50,431 | 57,669 | ||
Net income | $ 33,391 | $ 18,574 | $ (3,367) | $ 6,391 | $ 25,723 | $ 6,372 | $ 6,517 | $ 1,442 | $ 54,989 | $ 40,054 | $ 37,636 | ||
Net income (loss) per common share - basic (in dollars per share) | $ 0.40 | $ 0.22 | $ (0.04) | $ 0.08 | $ 0.30 | $ 0.08 | $ 0.08 | $ 0.02 | $ 0.66 | $ 0.48 | $ 0.45 | ||
Net income (loss) per common share - diluted (in dollars per share) | $ 0.38 | $ 0.22 | $ (0.04) | $ 0.07 | $ 0.30 | $ 0.07 | $ 0.08 | $ 0.02 | $ 0.64 | $ 0.47 | $ 0.43 | ||
[1] | Second quarter 2018 results include the Company's entry into the Settlement Agreement for the payment of $20 million, as described in Note 14. | ||||||||||||
[2] | Fourth quarter 2017 results include a non-cash tax benefit of $15.1 million due to the revaluation of the Company’s deferred tax balances pursuant to the tax rate reduction included in the 2017 Tax Act. |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts - Summary of Allowance for Doubtful Accounts and Estimated Liability for Appeals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
Balance at Beginning of Year | $ 14,799 | $ 10,772 | $ 11,464 |
Provision | 20,453 | 20,233 | 21,583 |
Recoveries | 108 | ||
Charge-offs | (21,569) | (16,206) | (22,383) |
Balance at End of Year | 13,683 | 14,799 | 10,772 |
Estimated Liability for Appeals and Estimated Allowance for Appeals [Member] | |||
Balance at Beginning of Year | 8,544 | 11,126 | 12,801 |
Provision | 83 | 721 | |
Recoveries | (108) | (2,665) | (2,396) |
Charge-offs | (8,436) | ||
Balance at End of Year | $ 8,544 | $ 11,126 |