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Operating Segment Information
 3 Months Ended
Jun. 30, 2011
Operating Segment Information [Abstract]  
Operating Segment Information
13. Operating Segment Information
The Company has prepared operating segment information in accordance with ASC 280 to report components that are evaluated regularly by its chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance.
During fiscal year 2011, as a result of certain organizational changes, the composition of the Company’s NextGen Division was revised to exclude the Company’s inpatient solutions entities (Opus and NextGen IS), both of which are now aggregated in the Company’s Inpatient Solutions Division. Following the reorganization, the Company now operates four reportable segments (not including Corporate), comprised of the NextGen Division, the Inpatient Solutions Division, the QSI Dental Division and the Practice Solutions Division.
Prior period segment results were revised accordingly to reflect the organizational changes. The results of operations related to the fiscal year 2010 acquisitions of Opus and NextGen IS are now included in the Inpatient Solutions Division. The results of operations related to the fiscal year 2009 acquisitions of HSI and PMP are included in the Practice Solutions Division.
The QSI Dental Division, co-located with the Company’s corporate headquarters in Irvine, California, currently focuses on developing, marketing and supporting software suites sold to dental practices.
The NextGen Division, with headquarters in Horsham, Pennsylvania, provides integrated clinical, financial and connectivity solutions for ambulatory and dental provider organizations and focuses principally on developing and marketing products and services for medical practices.
The Inpatient Solutions Division, with its primary location in Austin, Texas, provides integrated clinical, financial and connectivity solutions for rural and community hospitals. The Inpatient Solutions Division is comprised of IntraNexus, Opus and NextGen IS.
The Practice Solutions Division, with locations in St. Louis, Missouri and Hunt Valley, Maryland, focuses primarily on providing physician practices with RCM services, primarily billing and collection services for medical practices. This Division combines a Web-delivered SaaS model and the NextGenpm software platform to execute its service offerings. The Practice Solutions Division is comprised of HSI and PMP.
The Divisions operate largely as stand-alone operations, with each Division maintaining its own distinct product lines, product platforms, development, implementation and support teams and branding. The Divisions share the resources of the Company’s “corporate office,” which includes a variety of accounting and other administrative functions. Additionally, there are a small but growing number of clients who are simultaneously utilizing software or services from more than one of the Divisions.
In January 2011, QSIH was formed in Bangalore, India to function as the Company’s India-based captive to offshore technology application development and business processing services.
The accounting policies of the Company’s operating segments are the same as those described in Note 1, except that the disaggregated financial results of the segments reflect allocation of certain functional expense categories consistent with the basis and manner in which Company management internally disaggregates financial information for the purpose of assisting in making internal operating decisions. Certain corporate overhead costs, such as executive and accounting department personnel-related expenses, are not allocated to the individual segments by management.
Operating segment data is as follows:
                 
    Three Months Ended June 30,  
    2011     2010  
Revenue:
               
QSI Dental Division
  $ 5,096     $ 5,352  
NextGen Division
    74,624       62,671  
Inpatient Solutions Division
    7,290       3,159  
Practice Solutions Division
    13,432       11,745  
 
           
 
               
Consolidated revenue
  $ 100,442     $ 82,927  
 
           
 
               
Operating income:
               
QSI Dental Division
  $ 1,278     $ 1,591  
NextGen Division
    29,325       22,554  
Inpatient Solutions Division
    3,062       235  
Practice Solutions Division
    2,041       187  
Unallocated corporate expense (1)
    (6,887 )     (5,540 )
 
           
 
               
Consolidated operating income
  $ 28,819     $ 19,027  
 
           
 
(1)   Unallocated corporate expense includes eliminations relating to QSIH revenues and related expenses included in the results of the operating segments. For the three months ended June 30, 2011, eliminations were not significant, and there were no eliminations for the three months ended June 30, 2010.
Management evaluates performance based upon stand-alone segment operating income. Because the Company does not evaluate performance based upon return on assets at the operating segment level, assets are not tracked internally by segment. Therefore, segment asset information is not presented.
All of the recorded goodwill at June 30, 2011 relates to the Company’s NextGen Division, Inpatient Solutions Division and Practice Solutions Division. The goodwill relating to the acquisitions of HSI and PMP is recorded in the Practice Solutions Division. The goodwill amounts relating to the acquisitions of IntraNexus, Opus and NextGen IS are recorded in the Inpatient Solutions Division. See Note 4.