Operating Segment Information

3 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

The Company has four reportable segments that are evaluated regularly by its chief decision making group (consisting of the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer) in deciding how to allocate resources and in assessing performance. The chief decision making group evaluates performance based upon stand-alone segment operating income. Since assets by segment are not reported to or used by the Company’s chief decision making group to allocate resources, or to assess performance, total assets by segment are not disclosed.

Operating segment data is as follows:

	Three Months Ended June 30,
	2014			2013
Revenue:
QSI Dental Division	$	4,243		$	5,151
NextGen Division	91,714			81,535
Hospital Solutions Division	4,176			5,467
RCM Services Division	17,761			17,376
Consolidated revenue	$	117,894		$	109,529
Operating income (loss):
QSI Dental Division	$	935		$	1,641
NextGen Division	43,965			36,629
Hospital Solutions Division	(1,125		)	(704		)
RCM Services Division	1,836			3,022
Corporate and unallocated	(37,856		)	(21,035		)
Consolidated operating income	$	7,755		$	19,553

Effective April 1, 2014, the Company refined the measurement of its segment data to better reflect an organizational structure whereby certain expenses managed by functional area leadership are no longer classified within the operating segments but rather as a component of Corporate and unallocated. Such classification is consistent with the disaggregated financial information used by the Company's chief decision making group. The amounts classified as Corporate and unallocated have historically consisted primarily of corporate general and administrative costs and other centrally managed overhead costs, including accounting and finance, human resources, and legal costs, as well as non-recurring acquisition costs and the post-acquisition amortization of certain intangible assets. Currently, as a result of the refinement of its segment data, the Company no longer classifies the costs of the marketing and research and development functional areas and the amortization of capitalized software costs within the operating segments. The Company has retroactively reclassified the prior year operating income in the table above to present all segment information on a comparable basis.

The major components of the Corporate and unallocated amounts are summarized in the table below:

	Three Months Ended June 30,
	2014		2013
Research and development costs	$	16,236	$	5,614
Amortization of capitalized software costs	4,491		2,395
Marketing expense	3,229		2,167
Other Corporate and overhead costs	13,900		10,859
Total Corporate and unallocated	37,856		21,035