Business Segments

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segments

9. BUSINESS SEGMENTS

The Company provides services to healthcare organizations and other members within the healthcare industry. The Company’s services are focused on the delivery of workforce development products and services (HealthStream Workforce Solutions), survey and research services (HealthStream Patient Experience Solutions), and provider credentialing, privileging, call center and enrollment products and services (HealthStream Provider Solutions).

The Company measures segment performance based on operating income before income taxes and prior to the allocation of certain corporate overhead expenses, interest income, interest expense, gains and losses from equity investments, and depreciation. The Unallocated component below includes corporate functions, such as accounting, human resources, legal, investor relations, administrative and executive personnel, depreciation, a portion of amortization, and certain other expenses, which are not currently allocated in measuring segment performance. The following is the Company’s business segment information as of and for the years ended December 31, 2015, 2014 and 2013 (in thousands).

Revenues, net:	2015		2014		2013
Workforce	$	161,289	$	134,242	$	99,963
Patient Experience		34,193		31,901		28,454
Provider		13,520		4,547		3,857
Total revenues, net	$	209,002	$	170,690	$	132,274

Operating income:	2015			2014			2013
Workforce	$	39,986		$	35,374		$	28,203
Patient Experience		1,548			810			2,819
Provider		(2,559	)		826			277
Unallocated		(25,418	)		(20,635	)		(16,633	)
Total operating income	$	13,557		$	16,375		$	14,666

	Assets *						Purchases of long-lived assets						Depreciation and amortization
	2015		2014		2013		2015		2014		2013		2015		2014		2013
Workforce	$	82,375	$	81,116	$	48,514	$	11,403	$	7,179	$	6,243	$	6,693	$	4,813	$	2,829
Patient Experience		34,902		34,536		34,727		2,007		1,277		726		1,061		1,272		1,068
Provider		100,948		10,976		11,499		332		200		67		3,986		683		683
Unallocated		161,344		130,634		117,854		1,617		1,546		1,675		5,257		4,163		3,272
Total	$	379,569	$	257,262	$	212,594	$	15,359	$	10,202	$	8,711	$	16,997	$	10,931	$	7,852

* Segment assets include accounts and unbilled receivables, prepaid royalties, prepaid and other current assets, other assets, capitalized software development, certain property and equipment, and intangible assets. Cash and cash equivalents and marketable securities are not allocated to individual segments, and are included within Unallocated. A significant portion of property and equipment assets are included within Unallocated.