Segments and Customer Concentrations |
12 Months Ended |
|---|---|
Dec. 31, 2015 | |
| Segment Reporting [Abstract] | |
| Segments and Customer Concentrations | Segments and Customer Concentrations The Company has determined that it has a single operating segment in accordance with how its business activities are managed and evaluated. All of the Company’s significant operations are organized around the single business of providing end-to-end management services of revenue cycle operations for U.S.-based hospitals and other medical providers. Accordingly, for purposes of segment disclosures, the Company has only one reporting segment. All of the Company’s net services revenue and trade accounts receivable are derived from healthcare providers domiciled in the United States. While managed independently and governed by separate contracts, several of the Company’s RCM customers are affiliated with a single healthcare system. The Company evaluates each separate affiliated contract as a customer. The Company has between 25 and 30 individual customers for RCM services in each of the three years ended December 31, 2015, 2014 and 2013. The Company recognizes revenue on RCM services when there is a contract termination or other contractual agreement event, as defined in Note 2, Summary of Significant Accounting Policies in accordance with its accounting policy. The Company’s revenue is not consistent with its cash flows in that cash Note 11. Segments and Customer Concentrations (continued) may be accumulated over three to five years prior to a revenue recognition event. Therefore, measuring customers as a percent of total revenue may not be meaningful. Hospital systems affiliated with Ascension have accounted for a significant portion of the Company’s net services revenue each year since the Company’s formation. In 2015, 2014 and 2013, net services revenue from hospitals affiliated with Ascension represented 45%, 12% and 73% of the Company’s total net services revenue, respectively. An affiliate of Ascension, individually, accounted for 45%, 12% and 28% of the Company’s total net services revenue for 2015, 2014 and 2013, respectively. The Ascension system, through its individual customer contracts with the Company, account for more than 75%, 76% and 55% of the Company’s total deferred customer billings at December 31, 2015, 2014 and 2013, respectively. The loss of the customers within this large health system would have a material adverse impact on the Company’s operations. The Company does not have a concentration of credit risk within accounts receivable as reported in the consolidated balance sheets with any one large customer at December 31, 2015, 2014 and 2013. |