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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Mar. 31, 2018	May 22, 2018	Sep. 30, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	QUALITY SYSTEMS, INC.
Trading Symbol	QSII
Entity Central Index Key	0000708818
Document Type	10-K
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 828,669,000
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		63,850,007

Consolidated Balance Sheets - USD ($)
$ in Thousands

Mar. 31, 2018

Mar. 31, 2017

Current assets:

Cash and cash equivalents

$ 28,845

$ 37,673

Restricted cash and cash equivalents (Note 2)

2,373

4,916

Accounts receivable, net (Note 10)

84,962

83,407

Inventory

180

158

Income taxes receivable

8,122

2,679

Prepaid expenses and other current assets

17,180

17,969

Total current assets

141,662

146,802

Equipment and improvements, net

26,795

27,426

Capitalized software costs, net

26,318

13,607

Deferred income taxes, net

9,219

11,265

Intangibles, net

74,091

69,213

Goodwill

218,875

185,898

Other assets

18,795

19,010

Total assets

515,755

473,221

Current liabilities:

Accounts payable

4,213

4,618

Deferred revenue

54,079

52,383

Accrued compensation and related benefits

27,910

24,513

Income taxes payable

405

Other current liabilities

48,317

46,775

Total current liabilities

134,592

128,694

Deferred revenue, net of current

1,173

1,394

Deferred compensation

6,086

6,629

Line of credit

37,000

15,000

Other noncurrent liabilities

13,494

16,461

Total liabilities

192,345

168,178

Commitments and contingencies (Note 14)

Shareholders' equity:

Common stock, $0.01 par value; authorized 100,000 shares; issued and outstanding 63,712 and 62,455 shares at December 31, 2017 and March 31, 2017, respectively

640

625

Additional paid-in capital

244,462

228,549

Accumulated other comprehensive loss

(400)

(358)

Retained earnings

^[1]

78,708

76,227

Total shareholders' equity

323,410

305,043

Total liabilities and shareholders' equity

$ 515,755

$ 473,221

[1]	Includes cumulative effect adjustment related to adoption of ASU 2016-09. See Note 1 for additional details.

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Mar. 31, 2017
Statement Of Financial Position [Abstract]
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	63,995,000	62,455,000
Common stock, shares outstanding	63,995,000	62,455,000

Consolidated Statements of Net Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Software license and hardware	$ 55,576	$ 65,547	$ 70,523
Software related subscription services	99,547	87,050	55,403
Total software, hardware and related	155,123	152,597	125,926
Support and maintenance	163,805	158,803	165,200
Revenue cycle management and related services	83,996	82,552	83,006
Electronic data interchange and data services	92,773	88,951	82,343
Professional services	35,322	26,721	36,002
Total revenues	531,019	509,624	492,477
Cost of revenue:
Software license and hardware	21,667	24,654	27,506
Software related subscription services	44,495	36,744	26,622
Total software, hardware and related	66,162	61,398	54,128
Support and maintenance	29,932	28,317	31,329
Revenue cycle management and related services	60,905	56,370	57,591
Electronic data interchange and data services	54,015	51,102	50,153
Professional services	30,521	25,947	32,414
Total cost of revenue	241,535	223,134	225,615
Gross profit	289,484	286,490	266,862
Operating expenses:
Selling, general and administrative	193,226	163,623	156,234
Research and development costs, net	81,259	78,341	65,661
Amortization of acquired intangible assets	7,810	10,435	5,367
Impairment of assets	3,757	0	32,238
Restructuring costs	611	7,078	0
Total operating expenses	286,663	259,477	259,500
Income from operations	2,821	27,013	7,362
Interest income	55	14	428
Interest expense	(3,323)	(3,156)	(1,304)
Other income (expense), net	37	(262)	(166)
Income (loss) before provision for (benefit of) income taxes	(410)	23,609	6,320
Provision for (benefit of) income taxes	(2,830)	5,368	663
Net income	2,420	18,241	5,657
Other comprehensive income:
Foreign currency translation, net of tax	(42)	80	(382)
Unrealized gain on marketable securities, net of tax	0	43	93
Comprehensive income	$ 2,378	$ 18,364	$ 5,368
Net income per share:
Basic	$ 0.04	$ 0.30	$ 0.09
Diluted	$ 0.04	$ 0.29	$ 0.09
Weighted-average shares outstanding:
Basic	63,435	61,818	60,635
Diluted	63,440	62,010	61,233
Dividends declared per common share	$ 0	$ 0	$ 0.525

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Balance at Mar. 31, 2015	$ 283,540	$ 603	$ 198,650	$ 84,479	$ (192)
Balance, Shares at Mar. 31, 2015		60,303
Common stock issued under stock plans, net of shares withheld for taxes	992	$ 3	989
Common stock issued under stock plans, net of shares withheld for taxes, Shares		241
Common stock issued for earnout settlement	9,273	$ 4	9,269
Common stock issued for earnout settlement, Shares		434
Tax benefit related to stock options	(941)		(941)
Stock-based compensation	3,295		3,295
Dividends declared	(32,150)			(32,150)
Other comprehensive income:
Unrealized gain on marketable securities	93				93
Foreign currency translation, net of tax	(382)				(382)
Net income	5,657			5,657
Balance at Mar. 31, 2016	269,377	$ 610	211,262	57,986	(481)
Balance, Shares at Mar. 31, 2016		60,978
Common stock issued under stock plans, net of shares withheld for taxes	1,310	$ 11	1,299
Common stock issued under stock plans, net of shares withheld for taxes, Shares		1,043
Common stock issued for earnout settlement	9,273	$ 4	9,269
Common stock issued for earnout settlement, Shares		434
Tax benefit related to stock options	(879)		(879)
Stock-based compensation	7,598		7,598
Other comprehensive income:
Unrealized gain on marketable securities	43				43
Foreign currency translation, net of tax	80				80
Net income	18,241			18,241
Balance at Mar. 31, 2017	305,043	$ 625	228,549	76,227	(358)
Balance, Shares at Mar. 31, 2017		62,455
Common stock issued under stock plans, net of shares withheld for taxes	3,833	$ 15	3,818
Common stock issued under stock plans, net of shares withheld for taxes, Shares		1,540
Stock-based compensation	12,196		12,196
Cumulative effect adjustment related to the adoption of ASU 2016-09	(40)		(101)	61
Other comprehensive income:
Foreign currency translation, net of tax	(42)				(42)
Net income	2,420			2,420
Balance at Mar. 31, 2018	$ 323,410	$ 640	$ 244,462	$ 78,708	$ (400)
Balance, Shares at Mar. 31, 2018		63,995

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 2,420	$ 18,241	$ 5,657
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	10,498	10,080	8,834
Amortization of capitalized software costs	6,518	7,892	9,891
Amortization of other intangibles	23,380	22,462	11,014
Amortization and write-off of debt issuance costs	1,610	1,076	258
Loss on disposal of equipment and improvements	169	530	205
Provision for bad debts	5,913	5,082	3,573
Provision for inventory obsolescence	51	418	48
Share-based compensation	12,297	7,598	3,295
Deferred income taxes	312	(129)	10,030
Excess tax benefit from share-based compensation	328
Change in fair value of contingent consideration		4,247	261
Restructuring costs, net of amounts paid		2,891
Loss on disposition of Hospital Solutions Division			1,366
Impairment of assets	3,757	0	32,238
Changes in assets and liabilities, net of amounts acquired:
Accounts receivable	(5,409)	5,535	9,929
Inventory	(73)	(21)	17
Accounts payable	(1,232)	(6,590)	(271)
Deferred revenue	847	(5,493)	(8,390)
Accrued compensation and related benefits	2,228	5,237	(5,914)
Income taxes	(8,530)	34,740	(40,471)
Deferred compensation	(543)	272	607
Other assets and liabilities	22,045	(3,476)	(1,381)
Net cash provided by operating activities	76,586	110,592	40,796
Cash flows from investing activities:
Additions to capitalized software costs	(18,865)	(8,249)	(14,675)
Additions to equipment and improvements	(9,801)	(12,165)	(14,013)
Proceeds from sales and maturities of marketable securities		9,291	8,795
Purchases of marketable securities			(6,637)
Payments for acquisitions, net of cash acquired	(62,867)		(163,843)
HealthFusion working capital adjustment payment		(282)
Net cash used in investing activities	(91,533)	(11,405)	(190,373)
Cash flows from financing activities:
Proceeds from line of credit	50,000		173,509
Repayments on line of credit	(28,000)	(90,000)	(68,509)
Payment of debt issuance costs	(1,105)		(5,382)
Payment of contingent consideration related to acquisitions	(18,817)
Proceeds from issuance of shares under employee plans	4,889	1,310	992
Dividends paid			(42,850)
Payments for taxes related to net share settlement of equity awards	(848)
Net cash provided by (used in) financing activities	6,119	(88,690)	57,760
Net increase (decrease) in cash and cash equivalents	(8,828)	10,497	(91,817)
Cash and cash equivalents at beginning of period	37,673	27,176	118,993
Cash and cash equivalents at end of period	28,845	37,673	27,176
Cash paid for income taxes	6,379	4,800	33,246
Cash refunds from income taxes	1,874	29,575	2,344
Cash paid for interest	1,953	1,958	781
Tenant improvement allowance from landlord	1,442	4,813	2,933
Unpaid additions to equipment and improvements	$ 72	82	295
Common stock issued for settlement of share-based contingent consideration		$ 9,273	$ 9,273

Organization of Business	12 Months Ended
Organization of Business	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization of Business	1. Organization of Business Description of Business Quality Systems, Inc., known to our clients as NextGen® Healthcare, provides solutions on an integrated platform that enables our clients to target superior clinical and financial outcomes concurrent with improved physician and patient engagement. Our clients span the ambulatory care market from large multi-specialty to small single specialty practices and include networks of practices such as physician hospital organizations (“PHOs”), management service organizations (“MSOs”), independent physician associations (“IPAs”), accountable care organizations (“ACOs”), ambulatory care centers (“ACCs”), and community health centers(“CHCs”). At the core of our offerings are industry leading electronic health record (“EHR”) and practice management (“PM”) solutions that support the foundational clinical and financial activities of any ambulatory practice. We strive to enable our clients’ ability to maintain control of their organizational identity and destiny, rather than dictating a technology-driven road map. To meet our clients’ unique, evolving needs, we continue to expand and enrich our core offerings to create a comprehensive platform essential to our client’s success in the new value-based environment. Our platform includes one of the industry’s most recognized suites of vendor-agnostic cloud-based interoperability tools as well as our recently acquired, cloud-based Population Health Management and Analytics platform which allows our clients to cost effectively manage populations of patients – improving outcomes and enhancing the quality of care rendered. Our mobile solution significantly enhances, automates and streamlines physician workflows reducing physician burnout and resulting physician attrition. We have a history of enhancing our solutions through organic and inorganic activities. Over the last few years, we have entered into strategic transactions to complement and enhance our ambulatory market product portfolio. In October 2015, we divested our former Hospital Solutions division to focus exclusively on the ambulatory market place. In January 2016, we acquired HealthFusion Holdings, Inc. ("HealthFusion"), and its cloud-based EHR/PM. In April 2017, we acquired Entrada, Inc. ("Entrada"), a cloud-based, mobile platform for clinical documentation and collaboration. In August 2017, we acquired EagleDream Health, Inc. (“EagleDream”) and its cloud-based population health analytics, and in January 2018, we acquired Inforth Technologies (“Inforth”) for its specialty-focused clinical content. Quality Systems, Inc. was incorporated in California in 1974. Our principal offices are located at 18111 Von Karman Ave., Suite 800, Irvine, California, 92612. Our website is located at www.nextgen.com. We operate on a fiscal year ending on March 31.

Summary of Significant Accounting Policies

12 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Principles of Consolidation. The consolidated financial statements include the accounts of Quality Systems, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Each of the terms “NextGen Healthcare,” “NextGen,” “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompany accounts and transactions have been eliminated.

Business Segments. We have determined that the Company operates in one segment as of June 30, 2017. We have made such determination by first identifying our Chief Executive Officer as our chief operating decision maker ("CODM") and considering the measures used by our CODM to allocate resources. Our CODM utilizes consolidated revenue and consolidated operating results to assess performance and make decisions about allocation of resources.

Previously, through the end of fiscal year 2017, we operated under two reportable segments, consisting of the Software and Related Solutions segment and the RCM and Related Services segment, which was consistent with the disaggregated financial information used and evaluated by our CODM to assess performance and make decisions about the allocation of resources. However, as part of our reorganization efforts that were substantially complete as of the end of fiscal year 2017, our internal organizational structure whereby certain functions that formerly existed within each individual operating segment has continued to evolve. Our former Chief Operating Officer was previously responsible for leading the operations of our former RCM and Related Services business while our former Chief Client Officer led our client success organization, consisting of the Software and Related Solutions business and other functions, such as sales and marketing. Upon the resignation of our former Chief Operating Officer in April 2017 and concurrent appointment of our former Chief Client Officer as Chief Operating Officer, our entire portfolio of software and services were aligned under our new Chief Operating Officer in an effort to provide our clients with an even more simplified experience and more effectively deliver a consolidated financial solution to our clients, rather than components of a solution. As a result of such changes in our internal organization structure, the CODM now operates the Company as a single functional organization. The CODM measures company-wide performance by reviewing consolidated revenue and operating results and evaluates the impact of allocating resources to overall profit and margins on a consolidated basis.

Basis of Presentation. References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified.

Use of Estimates. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates. We evaluate our estimates on an ongoing basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and recording revenue and expenses during the period.

Revenue Recognition. We generate revenue from sales of licensing rights and subscriptions to our software products, hardware and third-party software products, support and maintenance services, revenue cycle management (“RCM”), electronic data interchange (“EDI”) and professional services, such as implementation, training, and consulting performed for clients who use our products.

We generally recognize revenue provided that persuasive evidence of an arrangement exists, fees are considered fixed or determinable, delivery of the product or service has occurred, and collection is considered probable. Revenue from the delivered elements, such as software licenses, are generally recognized upon physical or electronic delivery. In certain transactions where collection is not considered probable, the revenue is deferred until collection occurs. If the fee is not fixed or determinable, then the revenue recognized in each period (subject to application of other revenue recognition criteria) will be the lesser of the aggregate amounts due and payable or the amount of the arrangement fee that would have been recognized if the fees were being recognized using the residual method. We assess whether fees are considered fixed or determinable at the inception of the arrangement and negotiated fees generally are based on a specific volume of products to be delivered and not subject to change based on variable pricing mechanisms, such as the number of units copied or distributed or the expected number of users.

A typical software licensing arrangement may contain multiple elements, such as software licenses, support and maintenance services, and professional services. Revenue from arrangements involving multiple elements is generally allocated to each element using the residual method when evidence of fair value only exists for the undelivered elements. The fair value of an element is based on vendor-specific objective evidence (“VSOE”), which is established based on the price charged when the same element is sold separately or renewed. We generally establish VSOE for the related undelivered elements based on the bell-shaped curve method. VSOE is established on maintenance for certain clients based on stated renewal rates only if the rate is determined to be substantive and falls within our customary pricing practices. VSOE calculations are updated and reviewed on a quarterly or annual basis, depending on the nature of the product or service.

Under the residual method, we defer revenue related to the undelivered elements based on VSOE of fair value of each undelivered element and allocate the remainder of the contract price, net of all discounts, to the delivered elements. If VSOE of fair value of any undelivered element does not exist, all revenue is deferred until VSOE of fair value of the undelivered element is established or the element has been delivered.

Revenue related to arrangements that include hosting services is recognized in accordance to the revenue recognition criteria described above only if the client has the contractual right to take possession of the software at any time without incurring a significant penalty, and it is feasible for the client to either host the software on its own equipment or through another third party. Otherwise, the arrangement is accounted for as a service contract in which the entire arrangement is deferred and recognized over the period that the hosting services are being provided.

From time to time, we offer future purchase discounts on our products and services as part of our arrangements. Such discounts that are incremental to the range of discounts reflected in the pricing of the other elements of the arrangement, that are incremental to the range of discounts typically given in comparable transactions, and that are significant, are assessed as an additional element of the arrangement. Based on our assessments, such discounts are generally not considered to be incremental and significant. Revenue deferred related to incremental and significant future purchase options, if any, are not recognized until either the client exercises the discount offer or the offer expires.

Revenue from professional services, including implementation, training, and consulting services, are generally recognized as the corresponding services are performed. Revenue from software related subscription services and support and maintenance revenue are recognized ratably over the contractual service period. Revenue from EDI and data services and other transaction processing services are recognized at the time the services are provided to clients.

Revenue from RCM and related services is derived from service fees under our RCM arrangements, generally calculated as a percentage of total client collections. Our RCM arrangements include ongoing billing, collections, and other related services, and often may also include other products and services, such as software, software-as-a-service, support and maintenance, and professional services. We recognize RCM and related services revenue at the time collections are made by the client as the services fees are not fixed or determinable until such time.

We record revenue net of sales tax obligation in the consolidated statements of net income and comprehensive income.

Cash and Cash Equivalents. Cash and cash equivalents consist primarily of cash and money market funds with original maturities of less than 90 days. We had cash deposits held at U.S. banks and financial institutions at March 31, 2018 of which $27,566 was in excess of the Federal Deposit Insurance Corporation insurance limit of $250 per owner. Our cash deposits are exposed to credit loss for amounts in excess of insured limits in the event of nonperformance by the institutions; however, we do not anticipate nonperformance by these institutions.

Money market funds in which we hold a portion of our excess cash are invest in very high grade commercial and governmental instruments, and therefore bear low market risk.

Restricted Cash and Cash Equivalents. Restricted cash and cash equivalents consist of cash that is being held by the Company acting as an agent for the disbursement of certain state social and care services programs. We record an offsetting liability when we initially receive such cash from the programs. We relieve both restricted cash and cash equivalents and the related liability when amounts are disbursed. We earn an administrative fee based on a percentage of the funds disbursed on behalf of the government social and care service programs.

Accounts Receivable Reserves. We maintain reserves for potential sales returns and uncollectible accounts receivable. In aggregate, such reserves reduce our gross accounts receivable to estimated net realizable value.

Our standard contracts generally do not contain provisions for clients to return products or services. However, we historically have accepted sales returns under certain circumstances. Accordingly, we estimate sales return reserves, including reserves for returns and other credits, based upon our review of customer-specific facts and circumstances, including aged receivable balances, and recognize revenue, net of an allowance for sales returns. If we are unable to estimate the returns, revenue recognition may be delayed until the rights of return period lapses, provided also, that all other criteria for revenue recognition have been met. If we experience changes in practices related to sales returns or changes in actual return rates that deviate from the historical data on which our reserves had been established, our revenues may be adversely affected.

Allowances for doubtful accounts and other uncollectible accounts receivable related to estimated losses resulting from our clients’ inability to make required payments are established based on our historical experience of bad debt expense and the aging of our accounts receivable balances, net of deferred revenue and specifically reserved accounts. Specific reserves are based on our estimate of the probability of collection for certain troubled accounts. Accounts are written off as uncollectible only after we have expended extensive collection efforts.

Our allowances for doubtful accounts are based on our assessment of the collectability of client accounts. We regularly review the adequacy of these allowances by considering internal factors such as historical experience, credit quality and age of the client receivable balances as well as external factors such as economic conditions that may affect a client’s ability to pay and review of major third-party credit-rating agencies, as needed.

Inventory. Inventory consists of hardware for specific client orders and spare parts and are valued at lower of cost (first-in, first-out) and net realizable value. Our provision for inventory obsolescence reduces our inventory to net realizable value.

Equipment and Improvements. Equipment and improvements are stated at cost less accumulated depreciation and amortization. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation and amortization of equipment and improvements are recorded over the estimated useful lives of the assets, or the related lease terms if shorter, by the straight-line method. Useful lives generally have the following ranges:

•

Computer equipment - 3 to 5 years

•

Furniture and fixtures - 3 to 7 years

•

Leasehold improvements - lesser of lease term or estimated useful life of asset

Depreciation expense related to our equipment and improvements was $10,498, $10,080, and $8,834 for the years ended March 31, 2018, 2017, and 2016, respectively.

Capitalized Software Costs. Software development costs, consisting primarily of employee salaries and benefits, incurred in the research and development of new software products and enhancements to existing software products for external sale are expensed as incurred, and reported as net research and development costs in the consolidated statements of net income and comprehensive income, until technological feasibility has been established. After technological feasibility is established, additional external-sale software development costs are capitalized. Amortization of capitalized software is recorded using the greater of the ratio of current revenues to the total of current and expected revenues of the related product or the straight-line method over the estimated economic life of the related product, which is typically three years. We perform ongoing assessments of the net realizable value of such capitalized software costs. If a determination is made that capitalized amounts are not recoverable based on the projected undiscounted cash flows to be generated from the applicable software, any excess unamortized capitalized software costs are written off. In addition to the assessment of net realizable value, we routinely review the remaining estimated lives of our capitalized software costs and record adjustments, if deemed necessary. The total of capitalized software costs incurred in the development of products for external sale are reported as capitalized software costs within our consolidated balance sheets.

We also incur costs to develop software applications for our internal-use and costs for the development of software-as-a-service ("SaaS") based products sold to our clients. The development costs of our SaaS-based products are considered internal-use for accounting purposes. Our internal-use capitalized costs are stated at cost and amortized using the straight-line method over the estimated useful lives of the assets, which is typically three to seven years. Application development stage costs generally include costs associated with internal-use software configuration, coding, installation and testing. Costs related to the preliminary project stage and post-implementation activities are expensed as incurred. Costs of significant upgrades and enhancements that result in additional functionality are also capitalized, whereas costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. Capitalized software costs for developing SaaS-based products are reported as capitalized software costs within our consolidated balance sheets and capitalized software costs for developing our internal-use software applications are reported as equipment and improvements within our consolidated balance sheets.

Business Combinations. In accordance with the accounting for business combinations, we allocate the purchase price of the acquired business to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent our best estimate of fair value. The estimated fair value of the acquired tangible and intangible assets and liabilities assumed were determined using multiple valuation approaches depending on the type and nature of tangible or intangible asset acquired, including but not limited to the income approach, the excess earnings method and the relief from royalty method approach. The purchase price allocation methodology contains uncertainties as it requires us make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities, including, but not limited to, intangible assets, goodwill, deferred revenue, and contingent consideration liabilities. We estimate the fair value of the contingent consideration liabilities based on our projection of expected results, as needed. Unanticipated events or circumstances may occur which could affect the accuracy of our fair value estimates, including assumptions regarding industry economic factors and business strategies. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date. Any adjustments to fair value subsequent to the measurement period are reflected in the consolidated statements of net income and comprehensive income.

Goodwill. Goodwill acquired in a business combination is measured as the excess of the purchase price, or consideration transferred, over the net acquisition date fair values of the assets acquired and the liabilities assumed. Goodwill is not amortized as it has been determined to have an indefinite useful life.

We test goodwill for impairment annually during our first fiscal quarter, referred to as the annual test date. We will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired.

As part of our annual goodwill impairment test, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we conduct a two-step quantitative goodwill impairment test. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their carrying values. If the carrying amount of the reporting unit exceeds the reporting unit's fair value, we perform the second step of the goodwill impairment test. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit's goodwill with the carrying value of that goodwill. The amount by which the carrying value of the goodwill exceeds its implied fair value, if any, is recognized as an impairment loss.

Intangible Assets. Intangible assets consist of customer relationships, trade names and contracts, and software technology. These intangible assets are recorded at fair value and are reported net of accumulated amortization. We currently amortize the intangible assets over periods ranging from 3 to 10 years using a method that reflects the pattern in which the economic benefits of the intangible asset are consumed. We assess the recoverability of intangible assets at least annually or whenever adverse events or changes in circumstances indicate that impairment may have occurred. If the future undiscounted cash flows expected to result from the use of the related assets are less than the carrying value of such assets, impairment is deemed to have occurred and a loss is recognized to reduce the carrying value of the intangible assets to fair value, which is determined by discounting estimated future cash flows. In addition to the impairment assessment, we routinely review the remaining estimated lives of our intangible assets and record adjustments, if deemed necessary.

Long-Lived Assets. We assess the recoverability of long-lived assets at least annually or whenever adverse events or changes in circumstances indicate that impairment may have occurred. If the future undiscounted cash flows expected to result from the use of the related assets are less than the carrying value of such assets, impairment is deemed to have occurred and a loss is recognized to reduce the carrying value of the long-lived assets to fair value, which is determined by discounting estimated future cash flows. In addition to the impairment assessment, we routinely review the remaining estimated lives of our long-lived assets and record adjustments, if deemed necessary.

Income Taxes. Income taxes are provided based on current taxable income and the future tax consequences of temporary differences between the basis of assets and liabilities for financial and tax reporting. The deferred income tax assets and liabilities represent the future state and federal tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred income taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future income taxes. At each reporting period, we assess the realizable value of deferred tax assets based on, among other things, estimates of future taxable income and adjusts the related valuation allowance as necessary. We make a number of assumptions and estimates in determining the appropriate amount of expense to record for income taxes. The assumptions and estimates consider the taxing jurisdiction in which we operate as well as current tax regulations. Accruals are established for estimates of tax effects for certain transactions and future projected profitability based on our interpretation of existing facts and circumstances.

Advertising Costs. Advertising costs are expensed as incurred. We do not have any direct-response advertising. Advertising costs, which include trade shows and conventions, were approximately $9,073, $7,111, and $7,890 for the years ended March 31, 2018, 2017, and 2016, respectively, and were included in selling, general and administrative expenses in the accompanying consolidated statements of net income and comprehensive income.

Earnings per Share. We provide a dual presentation of “basic” and “diluted” earnings per share (“EPS”). Shares below are in thousands.

	Fiscal Year Ended March 31,
	2018		2017		2016
Earnings per share — Basic:
Net income	$	2,420	$	18,241	$	5,657
Weighted-average shares outstanding — Basic		63,435		61,818		60,635
Net income per common share — Basic	$	0.04	$	0.30	$	0.09

Earnings per share — Diluted:
Net income	$	2,420	$	18,241	$	5,657
Weighted-average shares outstanding		63,435		61,818		60,635
Effect of potentially dilutive securities		5		192		598
Weighted-average shares outstanding — Diluted		63,440		62,010		61,233
Net income per common share — Diluted	$	0.04	$	0.29	$	0.09

The computation of diluted net income per share does not include 2,984, 2,999 and 1,926 options for the years ended March 31, 2018, 2017, and 2016 respectively, because their inclusion would have an anti-dilutive effect on net income per share.

Share-Based Compensation. The following table shows total share-based compensation expense included in the consolidated statements of net income and comprehensive income for the fiscal year ended March 31, 2018, 2017, and 2016:

	Fiscal Year Ended March 31,
	2018			2017			2016
Costs and expenses:
Cost of revenue	$	938		$	514		$	404
Research and development costs, net		2,038			973			318
Selling, general and administrative		9,220			6,111			2,573
Total share-based compensation		12,196			7,598			3,295
Income tax benefit		(4,125	)		(2,637	)		(1,018	)
Decrease in net income	$	8,071		$	4,961		$	2,277

Recent Accounting Standards. Recent accounting pronouncements requiring implementation in current or future periods are discussed below or in the notes, where applicable.

In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-09, Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting ("ASU 2017-09"). ASU 2017-09 clarifies the changes to terms or conditions of a share-based payment award that require an entity to apply modification accounting. ASU 2017-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early application is permitted and prospective application is required. ASU 2017-09 is effective for us in the first quarter of fiscal 2019, and we currently do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of Step two of the goodwill impairment test. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective prospectively for annual and interim periods beginning after December 15, 2019, and early adoption is permitted on goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017-04 is effective for us in the fourth quarter of fiscal 2020, and we currently do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted in two scenarios as identified in the new standard. ASU 2017-01 is effective for us in the first quarter of fiscal 2019, and we currently do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In November 2016, the FASB issued Accounting Standards Update ("ASU") 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 provides guidance on the classification of restricted cash and cash equivalents in the statement of cash flows. Although it does not provide a definition of restricted cash or restricted cash equivalents, it states that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. ASU 2016-18 is effective for us in the first quarter of fiscal 2019, and we do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16"). ASU 2016-16 requires the recognition of current and deferred income taxes for intra-entity asset transfers when the transaction occurs. ASU 2016-16 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted. ASU 2016-16 is effective for us in the first quarter of fiscal 2019, and we are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 is intended to add and clarify guidance on the classification of certain cash receipts and cash payments in the statement of cash flows to eliminate diversity in practice related to how such cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. ASU 2016-15 is effective for us in the first quarter of fiscal 2019, and we do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies the accounting for and reporting on share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The amendments in this update are to be applied differently upon adoption with certain amendments being applied prospectively, retrospectively and under a modified retrospective transition method. We adopted ASU 2016-09 in the first quarter of fiscal 2018. As permitted by ASU 2016-09, we have made an accounting policy election to account for forfeitures as they occur, which was adopted on a modified retrospective basis and resulted in a cumulative-effect adjustment of $0.1 million to retained earnings and additional paid-in capital as of April 1, 2017. ASU 2016-09 also eliminates additional paid-in capital pools and requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled, which was adopted on a prospective basis. The requirements to recognize previously unrecognized excess tax benefits on a modified retrospective basis did not have an impact on our consolidated financial statements. Upon adoption of ASU 2016-09, excess tax benefits and tax deficiencies are recognized in the income statement, and the tax effects of exercised or vested awards are treated as discrete items in the period they occur. The provisions of ASU 2016-09 could have an impact to our future income tax expense, including increased volatility in our effective tax rate on a quarter by quarter basis due to a number of factors, including fluctuations in the stock price and the timing of stock option exercises and vesting of restricted share awards. Additionally, ASU 2016-09 addresses presentation of excess tax benefits and deficiencies and employee taxes paid related to shares withheld for tax withholdings purposes on the statement of cash flows, including a requirement to present excess tax benefits and deficiencies as an operating activity in the same manner as other cash flows related to income taxes on the statement of cash flows, which will be adopted on a prospective basis, and presentation of employee taxes paid related to shares withheld for tax withholdings purposes as a financing activity, which is consistent with our current presentation and thus did not impact our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which is intended to improve financial reporting about leasing transactions. The new guidance will require lessees to recognize on their balance sheets the assets and liabilities for the rights and obligations created by leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. ASU 2016-02 is effective for us in the first quarter of fiscal 2020. We are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on our consolidated financial statements.

In May 2014, the FASB, along with the International Accounting Standards Board, issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards and GAAP. The core principle of this updated guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires additional disclosure about revenue and provides improved guidance for multiple element arrangements. In July 2015 decision, the FASB issued ASU 2015-14, Deferral of Effective Date ("ASU 2015-14") to delay the effective date by one year. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606) –Principal versus Agent Consideration ("ASU 2016-08"). In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing ("ASU 2016-10”). In May 2016, the FASB issued ASU 2016-11, Revenue from Contracts with Customers (Topic 606) and Derivatives and Hedging (Topic 815) – Rescission of SEC Guidance Because of ASU 2014-09 and 2014-16 ("ASU 2016-11") and ASU 2016-12, Revenue from Contracts with Customers (Topic 606) –Narrow Scope Improvements and Practical Expedients ("ASU 2016-12"). The new ASUs do not change the core principle of the guidance in Topic 606 (as amended by ASU 2014-09), but rather help to provide further interpretive clarifications on the new guidance in ASU 2014-09. ASU 2014-09, as amended by ASU 2015-14, is effective for us in the first quarter of fiscal 2019. Companies are permitted to adopt this new guidance following either a full retrospective or modified retrospective approach.

We expect to implement the new revenue guidance when it becomes effective for us in the first quarter of fiscal 2019 utilizing the modified retrospective transition method. Under this transition method, prior period amounts will not be adjusted and the cumulative effect from prior periods of applying the new revenue guidance will be recognized in our consolidated balance sheets as of the date of adoption, including an adjustment to retained earnings.

We have completed our assessment of the potential impacts to our business processes, systems, and internal controls that could result from the implementation of the new revenue guidance. We expect that the new revenue guidance will result in additional complexity to our revenue recognition, including the use of an increased amount of significant judgments and estimates, particularly as it relates to our RCM services revenue, as compared to our current revenue recognition. RCM services revenue is derived from sales under our NextGen Financial Suite arrangements that include ongoing billing, collections, and other related services, and often may also include other products and services, such as software, subscriptions, support and maintenance, and professional services, for which service fees are generally calculated as a percentage of total client collections. Currently, we recognize RCM services revenue at the time collections are made by the client as the services fees are not fixed or determinable until such time. Substantially all revenues under our RCM services arrangements are currently reported as RCM and related services revenue in the consolidated statements of net income and comprehensive income. Upon the adoption of the new revenue guidance, we will estimate the total consideration to which we expect to be entitled over the non-cancellable contractual period of the RCM services arrangements and allocate the total consideration to the various performance obligations that may be included in the arrangement. As a result, a portion of revenues from our RCM services arrangements that were previously recognized and reported as RCM and related services revenue will be recognized as software, subscriptions, support and maintenance, and professional services revenue subsequent to the adoption of the new revenue guidance. Under the new revenue guidance, the timing of revenue recognition is based upon the transfer of value of the promised goods or services to our clients, which may result in an acceleration of revenue recognition under our RCM services arrangements as our software, subscriptions, support and maintenance, and professional services may be transferred to the client prior to time that client collections occur. Accordingly, we preliminarily expect a decrease in our RCM services revenue with a corresponding increase to our software, subscriptions, and professional services revenue subsequent to the adoption of the new revenue guidance.

Additionally, certain incremental costs incurred to obtain contracts with customers, such as sales commissions, are within the scope of the new revenue guidance and are required to be capitalized and amortized to expense over the remaining performance periods of the contracts. Currently, our sales commission are capitalized and amortized to expense over the related period of revenue recognition, which is generally one-year, or up to five-years for certain longer-term arrangements. We currently expect an increase in the amortization period of capitalized sales commissions upon adoption of the new revenue guidance, and we are currently in the process of evaluating the potential impact of the capitalization and amortization of sales commissions on our consolidated financial statements.

Based on our assessment, we currently believe that the impact on our consolidated financial statements could be material. Due to the complexity of our revenue recognition, a significant amount of work remains as we continue to evaluate all potential impacts of the new revenue guidance, and develop and implement the necessary changes to our current accounting systems, processes, and internal controls. Accordingly, our preliminary assessments are subject to change.

We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our consolidated financial statements.

Cash and Cash Equivalents	12 Months Ended
Cash and Cash Equivalents	Mar. 31, 2018
Cash And Cash Equivalents [Abstract]
Cash and Cash Equivalents	3. Cash and Cash Equivalents At March 31, 2018 and March 31, 2017, we had cash and cash equivalents of $28,845 and $37,673, respectively. Cash and cash equivalents consist primarily of cash and money market funds with original maturities of less than 90 days.

Fair Value Measurements

12 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2018 and March 31, 2017:

	Balance At		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Unobservable Inputs
	March 31, 2018		(Level 1)		(Level 2)		(Level 3)
ASSETS
Cash and cash equivalents ⁽¹⁾	$	28,845	$	28,845	$	—	$	—
Restricted cash and cash equivalents		2,373		2,373		—		—
	$	31,218	$	31,218	$	—	$	—

	Balance At		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Unobservable Inputs
	March 31, 2017		(Level 1)		(Level 2)		(Level 3)
ASSETS
Cash and cash equivalents ⁽¹⁾	$	37,673	$	37,673	$	—	$	—
Restricted cash and cash equivalents		4,916		4,916		—		—
	$	42,589	$	42,589	$	—	$	—
LIABILITIES
Contingent consideration related to acquisitions	$	18,817	$	—	$	18,817	$	—
	$	18,817	$	—	$	18,817	$	—

⁽¹⁾ Cash equivalents consist primarily of money market funds.

The contingent consideration liability as of March 31, 2017 relates to the acquisition of HealthFusion, which was settled during the quarter ended June 30, 2017. The measurement period of the contingent consideration liability ended on December 31, 2016, and thus the actual revenue achievement rate was utilized to compute the ending contingent consideration liability as of March 31, 2017. Accordingly, the contingent consideration liability was reflected under a Level 2 valuation hierarchy because the fair value was determined based on other significant observable inputs.

The following table presents activity in our financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as of and for the years ended March 31, 2017:

	Total Liabilities
Balance at March 31, 2016	$	23,843
Settlement of share-based contingent consideration related to Mirth		(9,273	)
Fair value adjustments, net		4,247
Transfer of HealthFusion contingent consideration to Level 2		(18,817	)
Balance at March 31, 2017	$	—

During the year ended March 31, 2017, we issued shares of common stock to settle $9,273 in contingent consideration liabilities related to the acquisition of Mirth and recorded $4,247 of net fair value adjustments to contingent consideration liabilities, of which $3,817 was related to HealthFusion and $430 was related to Mirth. The fair value adjustments to contingent consideration liabilities are included as a component of selling, general and administrative expense in the consolidated statements of net income and comprehensive income.

We believe that the fair value of other financial assets and liabilities, including accounts receivable, accounts payable, and line of credit, approximate their respective carrying values due to their nominal credit risk.

Non-Recurring Fair Value Measurements

We have certain assets, including goodwill and other intangible assets, which are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. The categorization of the framework used to measure fair value of the assets is considered to be within the Level 3 valuation hierarchy due to the subjective nature of the unobservable inputs used. During the year ended March 31, 2018, we recorded an impairment of $3,757 to our acquired trade names intangible assets, which was the result of the elimination of certain legacy brand and trade names due to the launching of our new branding, identity, and corporate logo intended to reflect our expanded health technology portfolio following years of recent acquisitions. During the years ended March 31, 2018 and 2017, we also recorded certain measurement period adjustments to goodwill (see Note 5).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Business Combinations and Dispositions

12 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

Business Combinations and Disposals

5. Business Combinations and Disposals

On January 31, 2018, we completed the acquisition of Inforth Technologies, LLC ("Inforth") pursuant to the Membership Interest Purchase Agreement, dated January 31, 2018. Headquartered in Traverse City, MI. Inforth was one of our premier clinical content and technical services partners specializing in comprehensive solutions for physician practices. The preliminary purchase price of Inforth totaled $4,337 and was funded by cash flows from operations.

On August 16, 2017, we completed the acquisition of EagleDream Health, Inc. ("EagleDream") pursuant to the Agreement and Plan of Merger, dated July 31, 2017. Headquartered in Rochester, NY, EagleDream provides cloud-based analytics that drives meaningful insight across clinical, financial and administrative data to optimize practice performance. The preliminary purchase price of EagleDream totaled $25,609, which included preliminary working capital and other customary adjustments, and was partially funded by a draw against our revolving credit agreement (see Note 9).

On April 14, 2017, we completed our acquisition of Entrada, Inc. ("Entrada") pursuant to the terms of the Agreement and Plan of Merger, dated April 11, 2017. Based in Nashville, TN, Entrada is a leading provider of cloud-based solutions that are reshaping the way care is delivered by leveraging the power of mobile whenever and wherever care happens. Entrada’s best-in-class mobile application integrates with multiple clinical platforms and all major electronic health record systems. Entrada enables organizations to maximize their existing technology investments while simultaneously enhancing physician and staff productivity. The acquisition of Entrada and its cloud-based, mobile application is part of our commitment to deliver systematic solutions that meet its clients' transforming work requirements to become increasingly nimble and mobile. The preliminary purchase price of Entrada totaled $33,958, which included preliminary working capital and other customary adjustments and was primarily funded by a draw against our revolving credit agreement (see Note 9).

On January 4, 2016, we completed our acquisition of HealthFusion Holdings, Inc. ("HealthFusion") pursuant to the Agreement and Plan of Merger, dated October 30, 2015. HealthFusion provides Web-based, cloud computing software for physicians, medical billing service providers, and hospitals. Its flagship product, MediTouch®, is a fully-integrated, cloud-based software suite consisting of clearinghouse, practice management, electronic health records, and patient portals with rich functionality to enable mobility, workflow automation, and advanced reporting and analytics aimed primarily at small-to-mid-size physician practices. The acquisition of HealthFusion is part of our strategy to expand its client base and cloud-based solution capabilities in the ambulatory market. Over time, we plan to expand the HealthFusion platform to satisfy the needs of practices of increasing size and complexity. The purchase price of HealthFusion totaled $183,049, which included working capital and other customary adjustments and the fair value of contingent consideration related to an additional $25,000 of cash in the form of an earnout, subject to HealthFusion achieving certain revenue targets through December 31, 2016. The initial estimated fair value of contingent consideration of $16,700 was based on a Monte Carlo-based valuation model that considered, among other assumptions and inputs, our estimate of projected HealthFusion revenues. As of March 31, 2017, the fair value of the contingent consideration was $18,817, which was paid and settled during the quarter ended June 30, 2017. The acquisition of HealthFusion was initially funded by a draw against the revolving credit agreement (see Note 9), a portion of which was subsequently repaid from existing cash on hand.

We accounted for the acquisitions noted above as purchase business combinations using the acquisition method of accounting. The purchase price allocation of the Inforth, EagleDream, and Entrada acquisitions are deemed to be preliminary. The purchase price allocation of the HealthFusion acquisition was considered final as of March 31, 2017.

The purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The preliminary fair values of acquired assets and liabilities assumed represent management’s estimate of fair value and are subject to change if additional information, such as changes to deferred taxes and/or working capital, becomes available. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date.

Goodwill represents the excess of the purchase price over the net identifiable assets acquired and liabilities assumed. Goodwill primarily represents, among other factors, the value of synergies expected to be realized and the assemblage of all assets that enable us to create new client relationships, neither of which qualify as separate amortizable intangible assets. Goodwill arising from the acquisition of Inforth is considered deductible for tax purposes, and goodwill arising from the acquisitions of EagleDream, Entrada, and HealthFusion are not deductible for tax purposes.

The total preliminary purchase price for the acquisitions of Inforth, EagleDream, and Entrada and final purchase price for the acquisition of HealhtFusion are summarized as follows:

	Inforth			EagleDream			Entrada
	Preliminary			Preliminary			Preliminary			HealthFusion
	Purchase Price			Purchase Price			Purchase Price			Purchase Price
Initial purchase price	$	4,000		$	26,000		$	34,000		$	165,000
Settlement of pre-existing net liabilities		337			—			—			—
Contingent consideration		—			—			—			16,700
Working capital and other adjustments		—			(391	)		(42	)		1,349
Total purchase price	$	4,337		$	25,609		$	33,958		$	183,049

Fair value of the net tangible assets acquired and liabilities assumed:
Acquired cash and cash equivalents	$	25		$	573		$	102		$	2,225
Accounts receivable		6			217			1,836			1,514
Prepaid expense and other current assets		—			20			145			4,645
Equipment and improvements		—			—			163			767
Capitalized software costs		—			—			364			307
Deferred income tax asset		—			—			117			—
Other assets		—			—			—			700
Accounts payable		—			(115	)		(639	)		(1,085	)
Accrued compensation and related benefits		(49	)		(691	)		(120	)		(533	)
Deferred revenues		—			(394	)		(234	)		(1,067	)
Deferred income tax liability		—			(1,811	)		—			(9,089	)
Other liabilities		(22	)		(122	)		(444	)		(2,721	)
Total net tangible assets acquired and liabilities assumed		(40	)		(2,323	)		1,290			(4,337	)
Fair value of identifiable intangible assets acquired:
Goodwill		1,177			14,532			17,268			112,386
Software technology		3,200			12,800			10,500			42,500
Customer relationships		—			600			3,300			28,500
Trade name		—			—			1,600			4,000
Total identifiable intangible assets acquired		4,377			27,932			32,668			187,386
Total purchase price	$	4,337		$	25,609		$	33,958		$	183,049

As noted in the table above, we recorded $3,200 of Inforth intangible assets related to software technology, which is being amortized over 5 years. We recorded $13,400 of EagleDream intangible assets related to customer relationships and software technology, which are being amortized over 8 years and 5 years, respectively. The weighted average amortization period for the acquired EagleDream intangible assets is 5.1 years. We also recorded $15,400 of Entrada intangible assets related to customer relationships, trade names, and software technology, which are being amortized over 10 years, 5 years, and 5 years, respectively. The weighted average amortization period for the acquired Entrada intangible assets is 6.1 years.

In connection with the HealthFusion acquisition, we recorded $75,000 of intangible assets related to customer relationships, trade names and software technology. We are amortizing the HealthFusion customer relationships over 10 years and trade names and software technology over 5 years. The weighted average amortization period for the acquired HealthFusion intangible assets is 6.9 years.

During the year ended March 31, 2018, we recorded a measurement period adjustment of $274 to EagleDream goodwill related to liabilities which existed at the time of acquisition, partially offset by changes in deferred taxes based on the filing of tax returns, and a measurement period adjustment of $924 to Entrada goodwill related to changes in deferred taxes based on the filing of tax returns.

During the year ended March 31, 2017, we recorded a measurement period adjustment of $2,938 to HealthFusion goodwill related to changes in deferred taxes based on the filing of final tax returns.

The revenues, earnings, and pro forma effects of the Inforth, EagleDream, and Entrada acquisitions would not have been material to our results of operations, individually and in aggregate, and are therefore not presented.

Including the effect of certain acquisition-related fair value adjustments, amortization of acquired intangible assets, and interest expense associated with the revolving credit agreement, the acquisition of HealthFusion contributed revenues of $8,781 and estimated net loss of $1,149 to our consolidated results for the year ended March 31, 2016.

The following table presents unaudited supplemental pro forma consolidated revenue and net income as if the acquisition of HealthFusion had occurred on April 1, 2014 (the beginning of the comparable prior annual reporting period).

Pro forma

year ended

March 31, 2016

(unaudited)

Combined revenues

518,708

Combined net income

134

The pro forma revenue and net income were derived by combining our historical results with HealthFusion's historical results, after applying our accounting policies and making adjustments related to the amortization of acquired intangible assets and interest expense associated with the revolving credit agreement. Specifically, the pro forma combined net income for the year ended March 31, 2016 include estimated amortization of acquired intangible assets and of estimated interest expense.

Hospital Disposition

On October 22, 2015, we closed an Asset Purchase Agreement with Quadramed Affinity Corporation in which we sold and assigned substantially all assets and liabilities of the former Hospital Solutions division. We believed that the Hospital disposition would allow us to focus our efforts and resources on our core ambulatory business. The financial terms of the transaction and the amount of consideration received were not significant. Since the Hospital disposition did not have a major effect on our operations and financial results, separate discontinued operations reporting was not provided.

We incurred a loss on the Hospital disposition of $1,366 in the year ended March 31, 2016, which was recorded in our consolidated statements of net income and comprehensive income as a component of selling, general and administrative expense. The loss was measured as the total consideration received and expected to be received less the lower of carrying value or fair value of the former Hospital Solutions division. Additionally, we incurred $387 in direct incremental costs of disposition and $335 in severance and other employee-related costs in connection with the Hospital disposition during the year ended March 31, 2016, which were recorded in our consolidated statements of net income and comprehensive income as a component of selling, general and administrative expense.

Goodwill	12 Months Ended
Goodwill	Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	6. Goodwill We test goodwill for impairment annually during our first fiscal quarter, referred to as the annual test date. Based on our assessment, we have determined that there was no impairment to our goodwill as of June 30, 2017. We will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. During the years ended March 31, 2018 and March 31, 2017, we did not identify any events or circumstances that would require an interim goodwill impairment test. We do not amortize goodwill as it has been determined to have an indefinite useful life. The carrying amount of goodwill as of March 31, 2018 was $218,875, which reflects the acquisitions of Entrada, EagleDream and Inforth (see Note 5). The carrying amount of goodwill as of March 31, 2017 was $185,898. During the years ended March 31, 2018 and 2017, we also recorded certain measurement period adjustments to goodwill (see Note 5).

Intangible Assets

12 Months Ended

Mar. 31, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

7. Intangible Assets

During the year ended March 31, 2018, we recorded an impairment of $3,757 to our acquired trade names intangible assets that is reflected within the impairment of assets caption in our consolidated statements of net income and comprehensive income. The impairment was the result of the elimination of certain legacy brand and trade names due to the launching of our new branding, identity, and corporate logo intended to reflect our expanded health technology portfolio following years of recent acquisitions.

Our definite-lived intangible assets, other than capitalized software development costs, are summarized as follows:

	March 31, 2018
	Customer			Software
	Relationships			Technology			Total
Gross carrying amount	$	54,450		$	94,310		$	148,760
Accumulated amortization		(35,531	)		(39,138	)		(74,669	)
Net intangible assets	$	18,919		$	55,172		$	74,091

	March 31, 2017
	Customer			Trade Name			Software
	Relationships			and Contracts			Technology			Total
Gross carrying amount	$	50,550		$	5,480		$	67,810		$	123,840
Accumulated amortization		(28,972	)		(2,088	)		(23,567	)		(54,627	)
Net intangible assets	$	21,578		$	3,392		$	44,243		$	69,213

Amortization expense related to customer relationships and trade name and contracts recorded as operating expenses in the consolidated statements of net income and comprehensive income was $7,810, $10,435, and $5,368 for the years ended March 31, 2018, 2017 and 2016, respectively. Amortization expense related to software technology recorded as cost of revenue was $15,570, $12,027, and $5,646 for the years ended March 31, 2018, 2017, and 2016, respectively.

The following table summarizes the remaining estimated amortization of definite-lived intangible assets as of March 31, 2018:

	Estimated Remaining Amortization Expense
	Operating Expense		Cost of Revenue		Total
For the year ended March 31,
2019	$	4,345	$	17,151	$	21,496
2020		3,460		17,151		20,611
2021		2,803		13,268		16,071
2022		2,273		5,480		7,753
2023		1,866		1,761		3,627
2024 and beyond		4,172		361		4,533
Total	$	18,919	$	55,172	$	74,091

Capitalized Software Costs

12 Months Ended

Mar. 31, 2018

Research And Development [Abstract]

Capitalized Software Costs

8. Capitalized Software Costs

Our capitalized software costs are summarized as follows:

	March 31, 2018			March 31, 2017
Gross carrying amount	$	50,361		$	104,948
Accumulated amortization		(24,043	)		(91,341	)
Net capitalized software costs	$	26,318		$	13,607

During the year ended March 31, 2018, we acquired $364 in capitalized software from Entrada (see Note 5) and retired $73,817 of fully amortized capitalized software costs that are no longer being utilized by our client base. Amortization expense related to capitalized software costs was $6,518, $7,892, and $9,891 for the years ended March 31, 2018, 2017, and 2016, respectively, and is recorded as cost of revenue in the consolidated statements of net income and comprehensive income.

The following table presents the remaining estimated amortization of capitalized software costs as of March 31, 2018. The estimated amortization is comprised of (i) amortization of released products and (ii) the expected amortization for products that are not yet available for sale based on their estimated economic lives and projected general release dates.