Operating Segment Information

12 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

Effective July 1, 2016, we revised our reportable operating segments. As part of our ongoing reorganization efforts, we refined the measurement of our segment data to better reflect our current internal organizational structure whereby certain functions that formerly existed within each individual operating segment have changed. Our operating segments consist of the Software and Related Solutions segment and the RCM and Related Services segment, which is consistent with the disaggregated financial information used and evaluated by our chief operating decision maker (consisting of our Chief Executive Officer) to assess performance and make decisions about the allocation of resources. Revenue and gross profit are the key measures of segment profitability used by our chief operating decision maker to measure segment operating performance and to make key business decisions. The revenues and gross profit of each segment are derived from distinct product and services within each segment. The Software and Related Solutions segment aggregates the revenues and gross profit of our software-related products and services, including software license and hardware, software-related subscription services, support and maintenance, EDI and data services, and certain professional services, such as implementation, training, and consulting. The RCM and Related Services segment aggregates the revenues and gross profit of our RCM services and certain related ancillary service offerings.

Certain functional roles that do not engage in revenue generating activities, such as product solutions and strategy, research and development, and certain corporate general and administrative functions, including finance, human resources, marketing, and legal, are considered to be shared-services and are not controlled by segment-level leadership. Although the segments may derive direct benefits as a result of such shared-services functions, our chief operating decision maker evaluates performance based upon stand-alone segment revenues and gross profit. Accordingly, the shared-services functions are not considered separate operating segments, and the related operating expenses are not included within our operating segments disclosure. Additionally, total assets are managed at a consolidated level and thus are also not included within our operating segments disclosure. Accounting policies for each of our operating segments are the same as those applied to our consolidated financial statements.

Operating segment data for the fiscal years ended March 31, 2017, 2016 and 2015 is summarized in the table below. Prior period data has been retroactively reclassified to present all segment information on a comparable basis. The change in reportable segments has no impact to consolidated revenues and consolidated cost of revenue, nor does it affect our presentation of revenue and cost of revenue on the consolidated statements of net income and comprehensive income.

	Fiscal Year Ended March 31,
	2017			2016			2015
Revenue:
Software and Related Solutions	$	423,593		$	398,449		$	395,259
RCM and Related Services	86,031			86,559			76,962
Hospital Solutions (1)	—			7,469			18,004
Consolidated revenue	$	509,624		$	492,477		$	490,225
Gross profit:
Software and Related Solutions	$	278,121		$	252,136		$	256,922
RCM and Related Services	28,274			27,694			21,514
Hospital Solutions (1)	—			2,568			4,876
Unallocated cost of revenue (2)	(19,905		)	(15,536		)	(16,251		)
Consolidated gross profit	$	286,490		$	266,862		$	267,061

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⁽¹⁾ The former Hospital Solutions division was divested in October 2015 and therefore, does not represent a distinct operating segment. Historical amounts for Hospital Solutions have not been revised.

⁽²⁾ Consists of amortization of acquired software technology and amortization of capitalized software costs not allocated to the operating segments for the purposes of measuring performance.