HMS HOLDINGS CORP

No Longer Reporting

The company has not filed an annual or quarterly report since its FY2020 10-K, filed Feb 26, 2021. Its latest SEC filing is a 15-12G from May 7, 2021.

The sections below describe the company as of the FY2020 annual report.

What Did They Do?

Identifies other insurance coverage and recovers improperly paid healthcare claims for government agencies, health plans and other healthcare organizations.

How Did They Make Money?

For its payment-accuracy services, HMS generally earns fees tied to claims or savings it identifies and is paid when customers receive the benefit; some fixed-fee contracts are paid over their term. Population-health work also brings in per-order or per-member monthly and annual fees as services are delivered.

revenue

Segment	Share	How money arrives
Coordination of Benefits Sold outright	70%	Sold outright
Payment Integrity Sold outright	23%	Sold outright
Population Health Management	7.7%

Who Were Their Customers?

Serves government agencies, health plans, pharmacy benefit managers, employers and healthcare organizations, and also works as a subcontractor to business outsourcing and technology firms.

Did Revenues Turn Into Profits?

Yes. It kept 10 cents of every revenue dollar as net income in FY2020 and turned 13 cents into free cash flow.

Operating income, FY2020

14% of revenue

▼ −10% vs FY2019 ($103M, 16%)

Net income, FY2020

10% of revenue

▼ −20% vs FY2019 ($87.2M, 14%)

Free cash flow, FY2020

13% of revenue

▼ −30% vs FY2019 ($125M, 20%)

How Were They Changing?

Since the FY2020 annual report

Apr 1, 2021 Gainwell completed its acquisition of HMS HMS became a wholly owned subsidiary, and its stock was delisted from Nasdaq.

Grew. Revenue grew 37% in 4 years, from $489.7M in FY2016 to $673.3M in FY2020, about 8% a year.

Revenue over time

Coordination of Benefits Payment Integrity Population Health Management

$1B$500M$0

FY2018 FY2019 FY2020

Who Did They Compete With?

Competes with Accenture, Casenet, Change Healthcare, Cotiviti, Discovery Health Partners, ExlService Holdings, IBM Watson Health, Inovalon Holdings, Medecision, MHK, Performant Financial, Optum, Welltok, and ZeOmega

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