Thesis
HMS Holdings (HMSY) posted its best Q4 and annual revenue numbers in company history. The performance was bolstered by better-than-expected results in payment integrity and population health management.
HMS is not a health insurer. It sells cost containment solutions to health insurers, both private and public (Medicaid/Medicare). As was the case last quarter, the company's Commercial segment continues to be the primary source of strong growth with revenue up more than 9% for the quarter, more than 20% for the year (vs. 3% for Government segment), and now accounts for more than