Business Segments

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Business Segments

8. 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, 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, 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 three months ended March 31, 2016 and 2015 (in thousands).

	Three Months Ended March 31,
Revenues, net:	2016		2015
Workforce	$	41,316	$	37,594
Patient Experience		7,964		7,987
Provider		4,798		1,575
Total revenues, net	$	54,078	$	47,156

	Three Months Ended March 31,
Income from operations:	2016			2015
Workforce	$	10,405		$	10,749
Patient Experience		(656	)		326
Provider		(166	)		136
Unallocated		(7,096	)		(6,421	)
Total income from operations	$	2,487		$	4,790

Segment assets *	March 31, 2016		December 31, 2015
Workforce	$	78,956	$	82,375
Patient Experience		33,303		34,902
Provider		101,133		100,948
Unallocated		162,401		161,344
Total assets	$	375,793	$	379,569

* Segment assets include accounts and unbilled receivables, 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.