|   | For the Fiscal Year Ended December 31, 2009 |
|--------|---------------------------------------------|

| Delaware                        |   | 62-1117144          |
|---------------------------------|--------|---------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer    |
| incorporation or organization)  |   | Identification No.) |

| 701 Cool Springs Boulevard, Franklin, TN  37067 |
|-----------------------------------------------------------|
| (Address of principal executive offices) (Zip code)       |

| (615) 614-4929                                             |
|------------------------------------------------------------|
| (Registrant’s telephone number, including area code) |

| Securities registered pursuant to Section 12(b) of the Act: |
|-------------------------------------------------------------|

| Title of each class                     |   | Name of each exchange on which registered |
|-----------------------------------------|--------|-------------------------------------------|
| Common Stock - $.001 par value, and     |   | The NASDAQ Stock Market LLC          |
| related Preferred Stock Purchase Rights |   |                                      |
|                                    |   |                                      |

----

----

|     |     |                                                                                           | Page   |
|----------|----------|------------------------------------------------------------------------------------------------|--------|
| Part I   |     |                                                                                           |   |
|     | Item 1.  | Business                                                                                       | 4      |
|     | Item 1A. | Risk Factors                                                                                   | 10     |
|     | Item 1B. | Unresolved Staff Comments                                                                      | 17     |
|     | Item 2.  | Properties                                                                                     | 17     |
|     | Item 3.  | Legal Proceedings                                                                              | 17     |
|     | Item 4.  | Submission of Matters to a Vote of Security Holders                                            | 19     |
| Part II  |     |                                                                                           |   |
|     | Item 5.  | Market for Registrant’s Common Equity, Related Stockholder                               |   |
|     |     | Matters and Issuer Purchases of Equity Securities                                              | 20     |
|     | Item 6.  | Selected Financial Data                                                                        | 21     |
|     | Item 7.  | Management’s Discussion and Analysis of Financial Condition and                          |   |
|     |     | Results of Operations                                                                          | 22     |
|     | Item 7A. | Quantitative and Qualitative Disclosures About Market Risk                                     | 39     |
|     | Item 8.  | Financial Statements and Supplementary Data                                                    | 41     |
|     | Item 9.  | Changes in and Disagreements with Accountants on Accounting and                                |   |
|     |     | Financial Disclosure                                                                           | 72     |
|     | Item 9A. | Controls and Procedures                                                                        | 72     |
|     | Item 9B. | Other Information                                                                              | 73     |
| Part III |     |                                                                                           |   |
|     | Item 10. | Directors, Executive Officers and Corporate Governance                                         | 73     |
|     | Item 11. | Executive Compensation                                                                         | 73     |
|     | Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 73     |
|     | Item 13. | Certain Relationships and Related Transactions, and Director Independence                      | 73     |
|     | Item 14. | Principal Accountant Fees and Services                                                         | 73     |
| Part IV  |     |                                                                                           |   |
|     | Item 15. | Exhibits, Financial Statement Schedules                                                        | 73     |

----

Item 

|   | · | fostering wellness and disease prevention through total population screening, health risk assessments and supportive interventions; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | providing access to health improvement programs, such as fitness, weight management, and complementary and alternative medicine. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | promoting the reduction of lifestyle behaviors that lead to poor health or chronic conditions; and |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | providing educational materials and personal interactions with highly trained nurses and other healthcare professionals to create and sustain healthier behaviors for those individuals at-risk or in the early stages of chronic conditions. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | incorporating the latest, evidence-based clinical guidelines into interventions to optimize patient health outcomes; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | developing care support plans and motivating members to set attainable goals for themselves; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | providing local market resources to address acute episodic interventions; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | coordinating members’ care with their healthcare providers; |
|--------|--------|-------------------------------------------------------------------|

|   | · | providing software licensing and management consulting in support of well-being improvement services; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

----

|   |   |               |   | December 31, |   | August 31, |   |   |
|--------|--------|--------------------|--------|--------------|--------|------------|--------|--------|
|   |   | (In 000s)          |   | 2009         |   | 2008       |   |   |
|   |   | Available lives(1) |   | 196,700      |   | 192,500    |   |   |
|   |   | Billed lives       |   | 36,000       |   | 31,700     |   |   |

|   |   |                          |   | December 31, |   | August 31, |   |
|--------|--------|-------------------------------|--------|--------------|--------|------------|--------|
|   |   | (In 000s)                     |   | 2009         |   | 2008       |   |
|   |   | Annualized revenue in backlog |   | $            | 32,400 |       | $      | 13,600 |   |

----

|   | · | keep healthy individuals healthy; |
|--------|--------|-----------------------------------|

|   | · | mitigate and delay the progression of disease associated with family or lifestyle risk factors; and |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | optimize care for those who are already affected by health conditions or disease. |
|--------|--------|-----------------------------------------------------------------------------------|

----

----

----

Item 1A. Risk Factors

----

----

----

| ·   | increasing our vulnerability to a downturn in general economic conditions or to increases in interest rates, particularly with respect to the portion of our outstanding debt that is subject to variable interest rates; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | potentially limiting our ability to obtain additional financing or to obtain such financing on favorable terms; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | causing us to dedicate a portion of future cash flow from operations to service or pay down our debt, which reduces the cash available for other purposes, such as operations, capital expenditures, and future business opportunities; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | possibly limiting our ability to adjust to changing market conditions and placing us at a competitive disadvantage compared to our competitors who may be less leveraged. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

Item 1B. Unresolved Staff Comments

Item 2.  Properties

Item 3.  Legal Proceedings

----

----

Item 4.  Submission of Matters to a Vote of Security Holders.

| Officer             | Age    | Position                                                                                                                                                                                                                                                                               |
|---------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                                                                   |
| Ben R. Leedle, Jr.  | 48     | Chief Executive Officer and director of the Company since September 2003, President from May 2002 through October 2008, Executive Vice President and Chief Operating Officer of the Health Plan Group from 2000 until May 2002.  Senior Vice President from 1996 until 2000. |
|                |   |                                                                                                                                                                                                                                                                                   |
| Stefen F. Brueckner | 60     | President and Chief Operating Officer of the Company since October 2008.  Vice President, Senior Products, for Humana Inc., from 2005 to 2008 and Vice President, Market Operations and Large Group Underwriting, from 2001 to 2005.                                         |
|                |   |                                                                                                                                                                                                                                                                                   |
| Mary A. Chaput      | 59     | Chief Financial Officer and Secretary of the Company since October 2001.                                                                                                                                                                                                               |
|                |   |                                                                                                                                                                                                                                                                                   |
| Matthew E. Kelliher | 54     | President, International Business, of the Company since September 2004.                                                                                                                                                                                                                |
|                |   |                                                                                                                                                                                                                                                                                   |
| Alfred Lumsdaine    | 44     | Chief Accounting Officer since February 2002.                                                                                                                                                                                                                                          |
|                |   |                                                                                                                                                                                                                                                                                   |
| Anne M. Wilkins     | 43     | Vice President, Marketing and Strategy, of the Company since May 2008.  Partner and Managing Director and lead of the North America Payer practice of the Boston Consulting Group from 2003 to 2008.                                                                         |

----

Item 5.  Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

|   |   |                                |   | High   |   |   | Low    |   |   |
|--------|--------|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|   |   | Year ended December 31, 2009        |   |   |   |   |   |   |   |
|   |   | First quarter                       |   | $      | 15.52  |   | $      | 7.01   |   |
|   |   | Second quarter                      |   |   | 14.78  |   |   | 8.27   |   |
|   |   | Third quarter                       |   |   | 16.86  |   |   | 12.03  |   |
|   |   | Fourth quarter                      |   |   | 19.44  |   |   | 13.31  |   |
|   |   |                                |   |   |   |   |   |   |   |
|   |   | Four months ended December 31, 2008 |   | $      | 19.96  |   | $      | 5.35   |   |
|   |   |                                |   |   |   |   |   |   |   |
|   |   | Year ended August 31, 2008          |   |   |   |   |   |   |   |
|   |   | First quarter                       |   | $      | 60.88  |   | $      | 48.99  |   |
|   |   | Second quarter                      |   |   | 71.22  |   |   | 28.43  |   |
|   |   | Third quarter                       |   |   | 37.79  |   |   | 29.68  |   |
|   |   | Fourth quarter                      |   |   | 34.60  |   |   | 18.57  |   |

----

Item 6.  Selected Financial Data

| (In thousands, except per share data)                                        |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |
|------------------------------------------------------------------------------|--------|--------|-------------------------|--------|--------|--------------------------------|---------|--------|--------|-----------------------|--------|---------|--------|---------|--------|--------|---------|--------|--------|--------|--------|---------|--------|
|                                                                         |   |   | Year Ended December 31, |   |   | Four Months Ended December 31, |    |   |   | Year Ended August 31, |   |
|                                                                         |   |   | 2009                    |   |   | 2008                           |    |   |   |  2008            |   |    |   | 2007    |   |   |    | 2006   |   |   |   | 2005    |   |
|                                                                         |   |   | (1) (2)                 |   |   | (1) (2)                        |    |   |   | (1) (2)               |   |    |   | (1) (2) |   |   |    | (1)    |   |   |   |    |   |
| Operating Results:                                                           |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| Revenues                                                                     |   | $      | 717,426                 |   |   | $                              | 244,737 |   |   |                  | $      | 736,243 |   |    |   | $      | 615,586 |   |   |   | $      | 412,308 |   |   |   | $ | 312,504 |   |
| Cost of services (exclusive of depreciation and amortization included below) |   |   | 522,999                 |   |   |                           | 177,651 |   |   |                  |   | 503,940 |   |    |   |   | 417,721 |   |   |   |   | 281,161 |   |   |   |   | 205,253 |   |
| Selling, general and administrative expenses                                 |   |   | 71,535                  |   |   |                           | 27,790  |   |   |                  |   | 71,342  |   |    |   |   | 67,352  |   |   |   |   | 44,417  |   |   |   |   | 28,418 |   |
| Depreciation and amortization                                                |   |   | 49,289                  |   |   |                           | 16,188  |   |   |                  |   | 47,479  |   |    |   |   | 37,044  |   |   |   |   | 24,517  |   |   |   |   | 22,408 |   |
| Impairment loss                                                              |   |   | —                 |   |   |                           | 4,344   |   |   |                  |   | — |   |    |   |   | — |   |   |   |   | — |   |   |   |   | — |   |
| Restructuring and related charges                                            |   |   | —                 |   |   |                           | 10,264  |   |   |                  |   | — |   |    |   |   | — |   |   |   |   | — |   |   |   |   | — |   |
| Operating income                                                             |   | $      | 73,603                  |   |   | $                              | 8,500   |   |   |                  | $      | 113,482 |   |    |   | $      | 93,469  |   |   |   | $      | 62,213  |   |   |   | $ | 56,425 |   |
| Gain on sale of investment                                                   |   |   | (2,581                  | )      |   |                           | — |   |   |                  |   | — |   |    |   |   | — |   |   |   |   | — |   |   |   |   | — |   |
| Interest expense                                                             |   |   | 15,717                  |   |   |                           | 6,757   |   |   |                  |   | 20,927  |   |    |   |   | 18,185  |   |   |   |   | 1,053   |   |   |   |   | 1,630 |   |
| Legal settlement and related costs                                           |   |   | 39,956                  |   |   |                           | — |   |   |                  |   | — |   |    |   |   | — |   |   |   |   | — |   |   |   |   | — |   |
|                                                                         |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| Income before income taxes                                                   |   | $      | 20,511                  |   |   | $                              | 1,743   |   |   |                  | $      | 92,555  |   |    |   | $      | 75,284  |   |   |   | $      | 61,160  |   |   |   | $ | 54,795 |   |
| Income tax expense                                                           |   |   | 10,137                  |   |   |                           | 1,009   |   |   |                  |   | 37,741  |   |    |   |   | 30,163  |   |   |   |   | 24,009  |   |   |   |   | 21,711 |   |
| Net income                                                                   |   | $      | 10,374                  |   |   | $                              | 734     |   |   |                  | $      | 54,814  |   |    |   | $      | 45,121  |   |   |   | $      | 37,151  |   |   |   | $ | 33,084 |   |
|                                                                         |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| Basic income per share: (1)                                                  |   | $      | 0.31                    |   |   | $                              | 0.02    |   |   |                  | $      | 1.57    |   |    |   | $      | 1.29    |   |   |   | $      | 1.08    |   |   |   | $ | 1.00 |   |
|                                                                         |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| Diluted income per share: (1)                                                |   | $      | 0.30                    |   |   | $                              | 0.02    |   |   |                  | $      | 1.50    |   |    |   | $      | 1.22    |   |   |   | $      | 1.02    |   |   |   | $ | 0.93 |   |
|                                                                         |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| Weighted average common shares and                                           |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| equivalents:                                                                 |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| Basic                                                                        |   |   | 33,730                  |   |   |                           | 33,616  |   |   |                  |   | 34,977  |   |    |   |   | 35,049  |   |   |   |   | 34,348  |   |   |   |   | 33,241 |   |
| Diluted                                                                      |   |   | 34,359                  |   |   |                           | 34,038  |   |   |                  |   | 36,597  |   |    |   |   | 37,002  |   |   |   |   | 36,379  |   |   |   |   | 35,691 |   |
|                                                                         |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| Balance Sheet Data:                                                          |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| Cash and cash equivalents                                                    |   | $      | 2,356                   |   |   | $                              | 5,157   |   |   |                  | $      | 35,242  |   |    |   | $      | 47,655  |   |   |   | $      | 154,792 |   |   |   | $ | 63,467 |   |
| Working capital (deficit)                                                    |   |   | (44,296                 | )      |   |                           | (6,034  | )      |   |                  |   | 21,276  |   |    |   |   | 10,792  |   |   |   |   | 124,469 |   |   |   |   | 70,644 |   |
| Total assets                                                                 |   |   | 882,366                 |   |   |                           | 883,090 |   |   |                  |   | 906,813 |   |    |   |   | 828,845 |   |   |   |   | 382,386 |   |   |   |   | 270,954 |   |
| Long-term debt                                                               |   |   | 254,345                 |   |   |                           | 304,372 |   |   |                  |   | 345,395 |   |    |   |   | 297,059 |   |   |   |   | 236     |   |   |   |   | 416 |   |
| Other long-term liabilities                                                  |   |   | 42,615                  |   |   |                           | 39,533  |   |   |                  |   | 31,227  |   |    |   |   | 14,388  |   |   |   |   | 10,853  |   |   |   |   | 9,055 |   |
| Stockholders’ equity                                                   |   |   | 377,277                 |   |   |                           | 357,036 |   |   |                  |   | 354,334 |   |    |   |   | 362,750 |   |   |   |   | 274,873 |   |   |   |   | 206,930 |   |
|                                                                         |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| Other Operating Data:                                                        |   |   |                    |   |   |                           |    |   |   |                  |   |    |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| Billed lives                                                                 |   |   | 36,000                  |   |   |                           | 32,900  |   |   |                  |   | 31,700  |   |    |   |   | 27,400  |   |   |   |   | 2,426   |   |   |   |   | 1,883 |   |
| Annualized revenue in backlog                                                |   | $      | 32,400                  |   |   | $                              | 35,900  |   |   |                  | $      | 13,600  |   |    |   | $      | 39,900  |   |   |   | $      | 6,625   |   |   |   | $ | 32,578 |   |

| (1) | Includes $13.9 million, $14.7 million, $18.1 million, $21.0 million, and $15.3 million during fiscal 2009, the four months ended December 31, 2008, and fiscal 2008, 2007, and 2006, respectively, of costs related to equity-based awards expensed under accounting principles generally accepted in the United States of America (“U.S. GAAP”) and cash-based awards issued in lieu of equity-based awards that were historically granted to certain levels of management.  These cash-based awards are a result of changes in the design of the Company's long-term incentive compensation program in preparation for adopting a new accounting pronouncement governing stock-based compensation on September 1, 2005. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Includes operating results, balance sheet data, and other operating data of Axia Health Management, Inc. since the date of the acquisition, which was December 1, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

Item 7.  

|   | · | fostering wellness and disease prevention through total population screening, health risk assessments and supportive interventions; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | providing access to health improvement programs, such as fitness, weight management, and complementary and alternative medicine. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | promoting the reduction of lifestyle behaviors that lead to poor health or chronic conditions; and |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | providing educational materials and personal interactions with highly trained nurses and other healthcare professionals to create and sustain healthier behaviors for those individuals at-risk or in the early stages of chronic conditions. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | incorporating the latest, evidence-based clinical guidelines into interventions to optimize patient health outcomes; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | developing care support plans and motivating members to set attainable goals for themselves; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | providing local market resources to address acute episodic interventions; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | coordinating members’ care with their healthcare providers; |
|--------|--------|-------------------------------------------------------------------|

|   | · | providing software licensing and management consulting in support of well-being improvement services; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | providing high-risk care management for members at risk for hospitalization due to complex conditions. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | our ability to sign and implement new contracts for our solutions; |
|--------|--------|--------------------------------------------------------------------|

|   | · | our ability to retain existing customers and to renew or maintain contracts with our customers under existing terms or restructure these contracts on terms that would not have a material negative impact on our results of operations; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | our ability to accurately forecast performance and the timing of revenue recognition under the terms of our customer contracts ahead of data collection and reconciliation in order to provide forward-looking guidance; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the impact of national healthcare reform proposals and the potential impact of healthcare reform legislation, if enacted, on our operations and/or the demand for our services; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the impact of any new or proposed legislation, regulations and interpretations relating to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, including the potential expansion to Phase II for Medicare Health Support programs and any legislative or regulatory changes with respect to Medicare Advantage; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to reach mutual agreement with the Centers for Medicare & Medicaid Services (“CMS”) with respect to results under Phase I of Medicare Health Support; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to anticipate the rate of market acceptance of our solutions in potential international markets; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | our ability to accurately forecast the costs necessary to implement our strategy of establishing a presence in international markets; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the risks associated with foreign currency exchange rate fluctuations and our ability to hedge against such fluctuations; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | the risks associated with a significant concentration of our revenues with a limited number of customers; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | our ability to effect cost savings and clinical outcomes improvements under our contracts and reach mutual agreement with customers with respect to cost savings, or to effect such savings and improvements within the time frames contemplated by us; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to achieve estimated annualized revenue in backlog in the manner and within the timeframe we expect, which is based on certain estimates regarding the implementation of our services; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability and/or the ability of our customers to enroll participants in our programs in a manner and within the timeframe anticipated by us; |   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | · | the ability of our customers to provide timely and accurate data that is essential to the operation and measurement of our performance under the terms of our contracts; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to favorably resolve contract billing and interpretation issues with our customers; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | our ability to service our debt and make principal and interest payments as those payments become due; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | the risks associated with changes in macroeconomic conditions, which may reduce the demand and/or the timing of purchases for our services from customers or potential customers, reduce the number of covered lives of our existing customers, restrict our ability to obtain additional financing, or impact the availability of credit under our Third Amended Credit Agreement; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | counterparty risk associated with our interest rate swap agreements and foreign currency exchange contracts; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | our ability to integrate acquired businesses or technologies into our business; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | the impact of any impairment of our goodwill or other intangible assets; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | our ability to develop new products and deliver outcomes on those products; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | our ability to implement our new integrated data and technology solutions platform within the timeframe and cost estimates that we expect; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to obtain adequate financing to provide the capital that may be necessary to support our operations and to support or guarantee our performance under new contracts; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | unusual and unforeseen patterns of healthcare utilization by individuals with diabetes, cardiac, respiratory and/or other diseases or conditions for which we provide services; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the ability of our customers to maintain the number of covered lives enrolled in the plans during the terms of our agreements; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the impact of litigation involving us and/or our subsidiaries; |
|--------|--------|----------------------------------------------------------------|

----

|   | · | the impact of future state, federal, and international healthcare and other applicable legislation and regulations on our ability to deliver our services and on the financial health of our customers and their willingness to purchase our services; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | current geopolitical turmoil, the continuing threat of domestic or international terrorism, and the potential emergence of a health pandemic; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| · | keep healthy individuals healthy; |
|--------|-----------------------------------|

| · | mitigate and delay the progression of disease associated with family or lifestyle risk factors; and |
|--------|-----------------------------------------------------------------------------------------------------|

| · | optimize care for those who are already affected by health conditions or disease. |
|--------|-----------------------------------------------------------------------------------|

----

----

|   |                                         |   | Year Ended December 31, |         | Four Months Ended |         | Year Ended |       |
|--------|----------------------------------------------|--------|-------------------------|--------------|-------------------|--------------|------------|------------|
|   |                                         |   |                    | December 31, |              | December 31, |       | August 31, |   |
|   |                                         |   | 2009                    |         | 2008              |         | 2007       |       | 2008 |   | 2007 |   |
|   |                                         |   |                    |         |              |         |       |       |   |   |   |   |
|   | Revenues                                     |   | 100.0                   | %            | 100.0             | %            | 100.0      | %          | 100.0 | % | 100.0 | % |
|   | Cost of services (exclusive of depreciation  |   |                    |         |              |         |       |       |   |   |   |   |
|   | and amortization included below)             |   | 72.9                    | %            | 72.6              | %            | 69.9       | %          | 68.4 | % | 67.9 | % |
|   | Selling, general and administrative expenses |   | 10.0                    | %            | 11.4              | %            | 9.3        | %          | 9.7 | % | 10.9 | % |
|   | Depreciation and amortization                |   | 6.9                     | %            | 6.6               | %            | 5.8        | %          | 6.4 | % | 6.0 | % |
|   | Impairment loss                              |   | —                 |         | 1.8               | %            | —    |       | — |   | — |   |
|   | Restructuring and related charges            |   | —                 |         | 4.2               | %            | —    |       | — |   | — |   |
|   | Operating income (1)                         |   | 10.3                    | %            | 3.5               | %            | 15.0       | %          | 15.4 | % | 15.2 | % |
|   |                                         |   |                    |         |              |         |       |       |   |   |   |   |
|   | Gain on sale of investment                   |   | (0.4                    | )%           | —           |         | —    |       | — |   | — |   |
|   | Interest expense                             |   | 2.2                     | %            | 2.8               | %            | 3.0        | %          | 2.8 | % | 3.0 | % |
|   | Legal settlement                             |   | 5.6                     | %            | —           |         | —    |       | — |   | — |   |
|   |                                         |   |                    |         |              |         |       |       |   |   |   |   |
|   | Income before income taxes                   |   | 2.9                     | %            | 0.7               | %            | 11.9       | %          | 12.6 | % | 12.2 | % |
|   | Income tax expense                           |   | 1.4                     | %            | 0.4               | %            | 4.9        | %          | 5.1 | % | 4.9 | % |
|   |                                         |   |                    |         |              |         |       |       |   |   |   |   |
|   | Net income (1)                               |   | 1.4                     | %            | 0.3               | %            | 7.0        | %          | 7.4 | % | 7.3 | % |

|   | · | contract restructurings and terminations with certain customers; and |
|--------|--------|----------------------------------------------------------------------|

|   | · | decreased revenues related to our Medicare Health Support pilots, which ended in January and July 2008, respectively. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | the commencement of contracts with new customers; |
|--------|--------|---------------------------------------------------|

|   | · | increased revenues from fitness center programs, primarily due to an increase in participation in these programs as well as in the number of members eligible for them; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | growth in the number of self-insured employer lives under existing customer contracts; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | increased performance-based revenues due to our ability to measure and achieve performance targets on certain contracts during fiscal 2009; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased membership in customers’ existing programs. |
|--------|--------|-------------------------------------------------------------|

|   | · | the commencement of new contracts; |
|--------|--------|------------------------------------|

|   | · | growth in the number of self-insured employers on behalf of our health plan customers; and |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | the addition of new programs or the expansion of existing programs into additional populations with existing customers. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | the addition of new customers, new programs with existing customers, or the expansion of existing programs into additional populations with existing customers since the beginning of fiscal 2007; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased membership in customers’ existing programs. |
|--------|--------|-------------------------------------------------------------|

|   | · | an increased portion of our revenue generated by fitness center and certain health improvement programs, which typically have a higher cost of services as a percentage of revenue than our other programs; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the addition of certain participating locations to our fitness center network that have a higher cost of services as a percentage of revenue; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | contract restructurings with certain customers that resulted in either decreased revenues or lower per member fees without a proportional corresponding decrease in costs; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an increase in the level of employee bonus provision based on the Company’s financial performance against established internal targets during these periods. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a decrease in salaries and benefits expense, primarily due to a restructuring of the Company that was largely completed during the fourth calendar quarter of 2008 and a decrease in health insurance costs related to changes in employee medical plan design in fiscal 2009, which included a number of wellness initiatives aimed at improving employee health; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | cost savings related to certain cost management initiatives. |
|--------|--------|--------------------------------------------------------------|

|   | · | the completion of an offer to purchase from our employees, excluding the chief executive officer and Board of Directors, outstanding options to acquire shares of common stock of the Company that were granted between September 1, 2004 and August 15, 2008 under our shareholder-approved stock option plans (the “Tender Offer”) on December 30, 2008.  The Tender Offer resulted in additional stock-based compensation expense within cost of services of $7.4 million, representing the remaining compensation cost for these options as measured at the grant date but not yet recognized prior to the completion of the Tender Offer; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased member utilization of fitness centers for contracts for which we receive a fixed fee per member; |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | contract restructurings with certain customers, as noted above, that resulted in decreased revenues without a proportional corresponding decrease in costs; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased costs related to information technology hosting security and storage for the four months ended December 31, 2008. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | decreased costs related to the two Medicare Health Support pilots in which we participated, which ended in January 2008 and July 2008, respectively; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | cost savings related to certain cost management initiatives. |
|--------|--------|--------------------------------------------------------------|

|   | · | an increased portion of our revenue growth generated by fitness center programs, which typically have a higher cost of services as a percentage of revenue than our other programs; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an increase in the level of employee bonus provision during fiscal 2008 compared to fiscal 2007 based on the Company’s financial performance against established internal targets during these periods. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | a net increase in salaries and benefits expense, primarily due to the Company restructuring in the fourth calendar quarter of 2008, which included an increased focus on research and development activities, resulting in an increase in personnel dedicated to these activities that more than offset the reduction in headcount resulting from this restructuring and other workforce reductions; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an increase in the level of employee bonus provision based on the Company’s financial performance against established internal targets during these periods. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | efficiencies from the integration of the Axia acquisition; and |
|--------|--------|----------------------------------------------------------------|

|   | · | our ability to more effectively leverage our selling, general and administrative expenses as a result of growth in our operations. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased depreciation expense resulting from capital expenditures on computer software development, which we made to enhance our information technology capabilities; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | depreciation and amortization expense associated with the depreciable assets and identifiable intangible assets recorded in connection with the Axia acquisition on December 1, 2006; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased amortization expense associated with patents which were acquired in August 2007. |
|--------|--------|--------------------------------------------------------------------------------------------|

----

----

|   | · | a decrease in income tax payments during fiscal 2009 primarily related to a smaller base of pretax income in fiscal 2009; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | an increase in cash collections on accounts receivable for fiscal 2009 compared to fiscal 2008 due to the timing of cash receipts as well as an improvement in days’ sales outstanding; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a decrease in interest payments during fiscal 2009, primarily as a result of a decrease in floating interest rates on outstanding borrowings under the Third Amended Credit Agreement. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | payments during fiscal 2009 related to the aforementioned legal settlement and related costs and fees; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | payments during fiscal 2009 related to a restructuring of the Company that was largely completed during the fourth quarter of calendar 2008, which primarily consisted of severance costs and costs associated with capacity consolidation; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a higher amount of lease incentives received during fiscal 2008 compared to fiscal 2009, primarily related to our new corporate headquarters in fiscal 2008. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   |  Swap # |   | Original NotionalAmount (in $000s) |   | Fixed InterestRate |   | Termination Date  |   |   |   |   |   |
|--------|--------|--------------|--------|------------------------------------|--------|--------------------|--------|-------------------|--------|--------|--------|--------|--------|
|   |   | 1            |   | $184,000                           |   | 4.995              | %      | March 31, 2010    | (1)    |   |   |   |   |
|   |   | 2            |   | 46,000                             |   | 4.995              | %      | March 31, 2010    | (2)    |   |   |   |   |
|   |   | 3            |   | 40,000                             |   | 3.433              | %      | December 30, 2011 |   |   |   |   |   |
|   |   | 4            |   | 50,000                             |   | 3.688              | %      | December 30, 2011 |   |   |   |   |   |
|   |   | 5            |   | 40,000                             |   | 3.855              | %      | December 30, 2011 | (3)    |   |   |   |   |
|   |   | 6            |   | 30,000                             |   | 3.760              | %      | March 30, 2011    | (4)    |   |   |   |   |
|   |   | 7            |   | 57,500                             |   | 3.385              | %      | December 31, 2013 | (5)    |   |   |   |   |
|   |   | 8            |   | 57,500                             |   | 3.375              | %      | December 31, 2013 | (6)    |   |   |   |   |

----

|   |                                    |   | Payments Due By Year Ended December 31, |   |
|--------|-----------------------------------------|--------|-----------------------------------------|--------|
|   | (In $000s)                              |   |                                    |   | 2011 - |   | 2013 - |   | 2015 and |   |   |   |
|   |                                    |   | 2010                                    |   | 2012 |   | 2014 |   | After |   | Total |   |
|   | Deferred compensation plan payments (1) |   | $                                       | 2,752  |   | $ | 5,161 |   | $ | 799 |   | $ | 5,646 |   | $ | 14,358 |   |
|   | Long-term debt (2)                      |   |                                    | 14,763 |   |   | 85,494 |   |   | 193,926 |   |   | — |   |   | 294,183 |   |
|   | Operating lease obligations (3)         |   |                                    | 14,933 |   |   | 26,755 |   |   | 20,398 |   |   | 55,982 |   |   | 118,068 |   |
|   | Purchase obligations                    |   |                                    | 4,610  |   |   | — |   |   | — |   |   | — |   |   | 4,610 |   |
|   | Other long-term liabilities (4)         |   |                                    | 419    |   |   | 2,624 |   |   | — |   |   | — |   |   | 3,043 |   |
|   | Other contractual cash obligations (5)  |   |                                    | 11,547 |   |   | 19,739 |   |   | 2,013 |   |   | 18,000 |   |   | 51,299 |   |
|   | Total contractual cash obligations      |   | $                                       | 49,024 |   | $ | 139,773 |   | $ | 217,136 |   | $ | 79,628 |   | $ | 485,561 |   |

----

Item 7A

----

----

Item 8. 

|                                                             |   | December 31, |     |   |   | August 31, |   |
|------------------------------------------------------------------|--------|--------------|----------|--------|--------|------------|--------|
|                                                             |   | 2009         |     |   |   | 2008       |   |
| Current assets:                                                  |   |         |     |   |   |       |   |   |   |
| Cash and cash equivalents                                        |   | $            | 2,356    |   |   |       | $      | 35,242 |   |
| Accounts receivable, net                                         |   |         | 100,833  |   |   |       |   | 113,312 |   |
| Prepaid expenses                                                 |   |         | 10,433   |   |   |       |   | 8,992 |   |
| Other current assets                                             |   |         | 4,945    |   |   |       |   | 5,275 |   |
| Income taxes receivable                                          |   |         | 6,452    |   |   |       |   | — |   |
| Deferred tax asset                                               |   |         | 24,197   |   |   |       |   | 24,948 |   |
| Total current assets                                             |   |         | 149,216  |   |   |       |   | 187,769 |   |
|                                                             |   |         |     |   |   |       |   |   |   |
| Property and equipment:                                          |   |         |     |   |   |       |   |   |   |
| Leasehold improvements                                           |   |         | 40,609   |   |   |       |   | 37,475 |   |
| Computer equipment and related software                          |   |         | 166,448  |   |   |       |   | 131,296 |   |
| Furniture and office equipment                                   |   |         | 28,096   |   |   |       |   | 29,209 |   |
| Capital projects in process                                      |   |         | 23,052   |   |   |       |   | 12,052 |   |
|                                                             |   |         | 258,205  |   |   |       |   | 210,032 |   |
| Less accumulated depreciation                                    |   |         | (134,046 | )      |   |       |   | (98,971 | ) |
|                                                             |   |         | 124,159  |   |   |       |   | 111,061 |   |
|                                                             |   |         |     |   |   |       |   |   |   |
| Other assets                                                     |   |         | 11,498   |   |   |       |   | 16,575 |   |
|                                                             |   |         |     |   |   |       |   |   |   |
| Customer contracts, net                                          |   |         | 29,343   |   |   |       |   | 34,521 |   |
| Other intangible assets, net                                     |   |         | 71,704   |   |   |       |   | 72,582 |   |
| Goodwill, net                                                    |   |         | 496,446  |   |   |       |   | 484,305 |   |
|                                                             |   |         |     |   |   |       |   |   |   |
| Total assets                                                     |   | $            | 882,366  |   |   |       | $      | 906,813 |   |
|                                                             |   |         |     |   |   |       |   |   |   |
| See accompanying notes to the consolidated financial statements. |   |         |     |   |   |       |

----

|                                                             |   | December 31,  |   |   |   | August 31,    |   |
|------------------------------------------------------------------|--------|---------------|--------|--------|--------|---------------|--------|
|                                                             |   | 2009          |   |   |   | 2008          |   |
| Current liabilities:                                             |   |          |   |   |   |          |   |
| Accounts payable                                                 | $      | 29,171        |   |   | $      | 18,753        |   |
| Accrued salaries and benefits                                    |   | 58,212        |   |   |   | 31,612        |   |
| Accrued liabilities                                              |   | 25,004        |   |   |   | 23,555        |   |
| Deferred revenue                                                 |   | 4,639         |   |   |   | 6,422         |   |
| Contract billings in excess of earned revenue                    |   | 70,440        |   |   |   | 75,454        |   |
| Income taxes payable                                             |   | —       |   |   |   | 3,984         |   |
| Current portion of long-term debt                                |   | 2,192         |   |   |   | 2,837         |   |
| Current portion of long-term liabilities                         |   | 3,854         |   |   |   | 3,876         |   |
| Total current liabilities                                        |   | 193,512       |   |   |   | 166,493       |   |
|                                                             |   |          |   |   |   |          |   |
| Long-term debt                                                   |   | 254,345       |   |   |   | 345,395       |   |
| Long-term deferred tax liability                                 |   | 14,617        |   |   |   | 9,364         |   |
| Other long-term liabilities                                      |   | 42,615        |   |   |   | 31,227        |   |
|                                                             |   |          |   |   |   |          |   |
| Stockholders’ equity:                                      |   |          |   |   |   |          |   |
| Preferred stock                                                  |   |          |   |   |   |          |   |
| $.001 par value, 5,000,000 shares                                |   |          |   |   |   |          |   |
| authorized, none outstanding                                     |   |  — |   |   |   |  — |   |
| Common stock                                                     |   |          |   |   |   |          |   |
| $.001 par value, 120,000,000 and 75,000,000 shares authorized,   |   |          |   |   |   |          |   |
| 33,858,917 and 33,603,320 shares outstanding                     |   | 34            |   |   |   | 34            |   |
| Additional paid-in capital                                       |   | 222,472       |   |   |   | 207,918       |   |
| Retained earnings                                                |   | 158,880       |   |   |   | 147,772       |   |
| Accumulated other comprehensive loss                             |   | (4,109        | )      |   |   | (1,390        | )      |
| Total stockholders’ equity                                 |   | 377,277       |   |   |   | 354,334       |   |
|                                                             |   |          |   |   |   |          |   |
| Total liabilities and stockholders’ equity                 | $      | 882,366       |   |   | $      | 906,813       |   |
|                                                             |   |          |   |   |   |          |   |
| See accompanying notes to the consolidated financial statements. |   |          |   |   |   |

----

|                                                                                                                                  |   |   |   |   | Year Ended December 31, |   |   | Four Months Ended December 31, |   |   |   |   | Year Ended August 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|-------------------------|--------|--------|--------------------------------|--------|--------|--------|--------|-----------------------|--------|
|                                                                                                                                  |   |   |   |   | 2009                    |   |   | 2008                           |   |   |   |   | 2008                  |   |   |   |   | 2007 |   |
| Revenues                                                                                                                              |   |   |   | $      | 717,426                 |   | $      | 244,737                        |   |   |   | $      | 736,243               |   |   |   | $ | 615,586 |   |
| Cost of services (exclusive of depreciation and amortization of $35,433, $11,805, $34,105, and $27,677, respectively, included below) |   |   |   |   | 522,999                 |   |   | 177,651                        |   |   |   |   | 503,940               |   |   |   |   | 417,721 |   |
| Selling, general and administrative expenses                                                                                          |   |   |   |   | 71,535                  |   |   | 27,790                         |   |   |   |   | 71,342                |   |   |   |   | 67,352 |   |
| Depreciation and amortization                                                                                                         |   |   |   |   | 49,289                  |   |   | 16,188                         |   |   |   |   | 47,479                |   |   |   |   | 37,044 |   |
| Impairment loss                                                                                                                       |   |   |   |   | —                 |   |   | 4,344                          |   |   |   |   | —               |   |   |   |   | — |   |
| Restructuring and related charges                                                                                                     |   |   |   |   | —                 |   |   | 10,264                         |   |   |   |   | —               |   |   |   |   | — |   |
|                                                                                                                                  |   |   |   |   |                    |   |   |                           |   |   |   |   |                  |   |   |   |   |   |   |
| Operating income                                                                                                                      |   |   |   |   | 73,603                  |   |   | 8,500                          |   |   |   |   | 113,482               |   |   |   |   | 93,469 |   |
| Gain on sale of investment                                                                                                            |   |   |   |   | (2,581                  | )      |   | —                        |   |   |   |   |  —         |   |   |   |   |  — |   |
| Interest expense                                                                                                                      |   |   |   |   | 15,717                  |   |   | 6,757                          |   |   |   |   | 20,927                |   |   |   |   | 18,185 |   |
| Legal settlement and related costs                                                                                                    |   |   |   |   | 39,956                  |   |   | —                        |   |   |   |   | —               |   |   |   |   | — |   |
|                                                                                                                                  |   |   |   |   |                    |   |   |                           |   |   |   |   |                  |   |   |   |   |   |   |
| Income before income taxes                                                                                                            |   |   |   |   | 20,511                  |   |   | 1,743                          |   |   |   |   | 92,555                |   |   |   |   | 75,284 |   |
| Income tax expense                                                                                                                    |   |   |   |   | 10,137                  |   |   | 1,009                          |   |   |   |   | 37,740                |   |   |   |   | 30,163 |   |
|                                                                                                                                  |   |   |   |   |                    |   |   |                           |   |   |   |   |                  |   |   |   |   |   |   |
| Net income                                                                                                                            |   |   |   | $      | 10,374                  |   | $      | 734                            |   |   |   | $      | 54,815                |   |   |   | $ | 45,121 |   |
|                                                                                                                                  |   |   |   |   |                    |   |   |                           |   |   |   |   |                  |   |   |   |   |   |   |
| Earnings per share:                                                                                                                   |   |   |   |   |                    |   |   |                           |   |   |   |   |                  |   |   |   |   |   |   |
| Basic                                                                                                                                 |   |   |   | $      | 0.31                    |   | $      | 0.02                           |   |   |   | $      | 1.57                  |   |   |   | $ | 1.29 |   |
|                                                                                                                                  |   |   |   |   |                    |   |   |                           |   |   |   |   |                  |   |   |   |   |   |   |
| Diluted                                                                                                                               |   |   |   | $      | 0.30                    |   | $      | 0.02                           |   |   |   | $      | 1.50                  |   |   |   | $ | 1.22 |   |
|                                                                                                                                  |   |   |   |   |                    |   |   |                           |   |   |   |   |                  |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |                    |   |   |                           |   |   |   |   |                  |   |   |   |   |   |   |
| Weighted average common shares and equivalents                                                                                        |   |   |   |   |                    |   |   |                           |   |   |   |   |                  |   |   |   |   |   |   |
| Basic                                                                                                                                 |   |   |   |   | 33,730                  |   |   | 33,616                         |   |   |   |   | 34,977                |   |   |   |   | 35,049 |   |
| Diluted                                                                                                                               |   |   |   |   | 34,359                  |   |   | 34,038                         |   |   |   |   | 36,597                |   |   |   |   | 37,002 |   |
|                                                                                                                                  |   |   |   |   |                    |   |   |                           |   |   |   |   |                  |   |   |   |   |   |   |
| See accompanying notes to the consolidated financial statements.                                                                      |   |   |   |   |                    |   |   |                           |   |   |   |

----

|                                            |   |      |          |   |   |          |   |     |          | Accumulated   |   |          |   |
|-------------------------------------------------|--------|-----------|---------------|--------|--------|---------------|--------|----------|---------------|---------------|--------|---------------|--------|
|                                            |   |      |          |   |   | Additional    |   |     |          | Other         |   |          |   |
|                                            |   | Preferred |          | Common |   | Paid-in       |   | Retained |          | Comprehensive |   |          |   |
|                                            |   | Stock     |          | Stock  |   | Capital       |   | Earnings |          | Income (Loss) |   | Total         |   |
| Balance, August 31, 2006                        |   |      | $—      |   |   | $35           |   |     | $140,200      |          |   | $134,622      |   |   | $16 |   |   | $274,873 |   |
| Comprehensive income:                           |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| Net income                                      |   |      |  — |   |   |  — |   |     |  — |          |   | 45,121        |   |   |  — |   |   | 45,121 |   |
| Net change in fair value of interest rate       |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
|  swap, net of income tax benefit of $133   |   |      |  — |   |   |  — |   |     |  — |          |   |  — |   |   | (205 | ) |   | (205 | ) |
| Foreign currency translation adjustment         |   |      |  — |   |   |  — |   |     |  — |          |   | —       |   |   | 137 |   |   | 137 |   |
| Total comprehensive income                      |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   | 45,053 |   |
| Sale of unregistered common stock               |   |      |  — |   |   |  — |   |     | 5,000         |          |   |  — |   |   |  — |   |   | 5,000 |   |
| Repurchases of common stock                     |   |      | —       |   |   | —       |   |     | (552          | )             |   | (5,102        | )      |   | — |   |   | (5,654 | ) |
| Exercise of stock options and other             |   |      |  — |   |   |  — |   |     | 11,221        |          |   |  — |   |   |  — |   |   | 11,221 |   |
| Tax benefit of option exercises                 |   |      |  — |   |   |  — |   |     | 13,421        |          |   |  — |   |   |  — |   |   | 13,421 |   |
| Share-based employee compensation expense       |   |      |  — |   |   |  — |   |     | 18,836        |          |   |  — |   |   |  — |   |   | 18,836 |   |
| Balance, August 31, 2007                        |   |      | $—      |   |   | $35           |   |     | $188,126      |          |   | $174,641      |   |   | $(52 | ) |   | $362,750 |   |
| Cumulative effect of a change in accounting     |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| principle – adoption of FIN 48            |   |      | —       |   |   |          |   |     | —       |          |   | (687          | )      |   | — |   |   | (687 | ) |
| Comprehensive income:                           |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| Net income                                      |   |      | —       |   |   |  — |   |     |  — |          |   | 54,815        |   |   |  — |   |   | 54,815 |   |
| Net change in fair value of interest rate       |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| swap, net of income tax benefit of $1,064       |   |      | —       |   |   |  — |   |     |  — |          |   |  — |   |   | (1,510 | ) |   | (1,510 | ) |
| Foreign currency translation adjustment         |   |      | —       |   |   |  — |   |     |  — |          |   | —       |   |   | 172 |   |   | 172 |   |
| Total comprehensive income                      |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   | 53,477 |   |
| Repurchases of common stock                     |   |      |  — |   |   | (2            | )      |     | (13,341       | )             |   | (80,997       | )      |   | — |   |   | (94,340 | ) |
| Exercise of stock options and other             |   |      |  — |   |   |  1       |   |     | 6,710         |          |   |  — |   |   |  — |   |   | 6,711 |   |
| Tax benefit of option exercises                 |   |      |  — |   |   |  — |   |     | 9,893         |          |   |  — |   |   |  — |   |   | 9,893 |   |
| Share-based employee compensation expense       |   |      |  — |   |   |  — |   |     | 16,530        |          |   |  — |   |   |  — |   |   | 16,530 |   |
| Balance, August 31, 2008                        |   |      | $—      |   |   | $34           |   |     | $207,918      |          |   | $147,772      |   |   |  $(1,390 | ) |   | $354,334 |   |
| Comprehensive income:                           |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| Net income                                      |   |      | —       |   |   | —       |   |     | —       |          |   | 734           |   |   | — |   |   | 734 |   |
| Net change in fair value of interest rate       |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| swaps, net of income tax benefit of $3,371      |   |      | —       |   |   | —       |   |     | —       |          |   | —       |   |   | (5,007 | ) |   | (5,007 | ) |
| Change in fair value of investment, net of      |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| income taxes of $1,094                          |   |      | —       |   |   | —       |   |     | —       |          |   | —       |   |   | 1,607 |   |   | 1,607 |   |
| Foreign currency translation adjustment         |   |      | —       |   |   | —       |   |     | —       |          |   | —       |   |   | (175 | ) |   | (175 | ) |
| Total comprehensive loss                        |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   | (2,841 | ) |
| Write-off of deferred tax assets related to the |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
|    repurchase of stock options   |   |      | —       |   |   | —       |   |     | (9,088        | )             |   | —       |   |   | — |   |   | (9,088 | ) |
| Exercise of stock options                       |   |      | —       |   |   | —       |   |     | 56            |          |   | —       |   |   | — |   |   | 56 |   |
| Tax effect of option exercises                  |   |      | —       |   |   | —       |   |     | (340          | )             |   | —       |   |   | — |   |   | (340 | ) |
| Share-based employee compensation expense       |   |      | —       |   |   | —       |   |     | 14,915        |          |   | —       |   |   | — |   |   | 14,915 |   |
| Balance, December 31, 2008                      |   |      | $—      |   |   | $34           |   |     | $213,461      |          |   | $148,506      |   |   |  $(4,965 | ) |   | $357,036 |   |
| Comprehensive income:                           |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| Net income                                      |   |      | —       |   |   | —       |   |     | —       |          |   | 10,374        |   |   | — |   |   | 10,374 |   |
| Net change in fair value of interest rate       |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| swaps, net of income taxes of $1,783            |   |      | —       |   |   | —       |   |     | —       |          |   | —       |   |   | 2,418 |   |   | 2,418 |   |
| Change in fair value of investment, net of      |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| income tax benefit of $49                       |   |      | —       |   |   | —       |   |     | —       |          |   | —       |   |   | (71 | ) |   | (71 | ) |
| Sale of investment, net of income taxes of      |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| $1,045                                          |   |      | —       |   |   | —       |   |     | —       |          |   | —       |   |   | (1,536 | ) |   | (1,536 | ) |
| Foreign currency translation adjustment         |   |      | —       |   |   | —       |   |     | —       |          |   | —       |   |   | 45 |   |   | 45 |   |
| Total comprehensive income                      |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   | 11,230 |   |
| Repurchase of stock options                     |   |      | —       |   |   | —       |   |     | (736          | )             |   | —       |   |   | — |   |   | (736 | ) |
| Exercise of stock options                       |   |      |  — |   |   | —       |   |     | 727           |          |   |  — |   |   |  — |   |   | 727 |   |
| Tax effect of option exercises                  |   |      |  — |   |   |  — |   |     | (1,193        | )             |   |  — |   |   |  — |   |   | (1,193 | ) |
| Share-based employee compensation expense       |   |      |  — |   |   |  — |   |     | 10,213        |          |   |  — |   |   |  — |   |   | 10,213 |   |
|                                            |   |      |          |   |   |          |   |     |          |          |   |          |   |   |   |   |   |   |   |
| Balance, December 31, 2009                      |   |      | $—      |   |   | $34           |   |     | $222,472      |          |   | $158,880      |   |   |  $(4,109 | ) |   | $377,277 |   |

----

|   |                                                                                                                        |   | Year Ended December 31, |                                                                                                          | Four Months Ended December 31, |   | Year Ended August 31,                                                                                                           |
|--------|-----------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------------------------------------------------------------------------------------------------------------|--------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                        |   | 2009                    |                                                                                                          | 2008                           |   | 2008                                                                                                                            |   | 2007 |
|   |                                                                                                                        |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Cash flows from operating activities:                                                                                       |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Net income                                                                                                                  |   | $                       | 10,374                                                                                                        |                           | $      | 734                                                                                                                             |   | $ | 54,815 |   | $ | 45,121 |
|   | Adjustments to reconcile net income to net cash   provided by operating activities, net of business acquisitions: |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Depreciation and amortization                                                                                               |   |                    | 49,289                                                                                                        |                           |   | 16,188                                                                                                                          |   |   | 47,479 |   |   | 37,044 |
|   | Gain on sale of investment                                                                                                  |   |                    | (2,581                                                                                                        | )                         |   |                      - |   |   |                    - |   |   |                     - |
|   | Loss on disposal of property and equipment                                                                                  |   |                    | 1,584                                                                                                         |                           |   | 1,568                                                                                                                           |   |   |                    - |   |   |                     - |
|   | Impairment loss                                                                                                             |   |                    |                   - |                           |   | 4,344                                                                                                                           |   |   |                    - |   |   |                     - |
|   | Amortization of deferred loan costs                                                                                         |   |                    | 1,518                                                                                                         |                           |   | 415                                                                                                                             |   |   | 1,168 |   |   | 991 |
|   | Share-based employee compensation expense                                                                                   |   |                    | 10,213                                                                                                        |                           |   | 14,915                                                                                                                          |   |   | 16,530 |   |   | 18,836 |
|   | Excess tax benefits from share-based payment arrangements                                                                   |   |                    | (381)                                                                                                         |                           |   | (68)                                                                                                                            |   |   | (9,480) |   |   | (12,152) |
|   | Decrease (increase) in accounts receivable, net                                                                             |   |                    | 14,352                                                                                                        |                           |   | (1,796)                                                                                                                         |   |   | (33,131) |   |   | (2,749) |
|   | (Increase) decrease in other current assets                                                                                 |   |                    | (1,972)                                                                                                       |                           |   | (3,011)                                                                                                                         |   |   | 3,927 |   |   | (3,299) |
|   | Increase (decrease) in accounts payable                                                                                     |   |                    | 6,565                                                                                                         |                           |   | (3,620)                                                                                                                         |   |   | 2,516 |   |   | (1,143) |
|   | Increase (decrease) in accrued salaries and benefits                                                                        |   |                    | 24,991                                                                                                        |                           |   | 1,549                                                                                                                           |   |   | 12,652 |   |   | (21,362) |
|   | (Decrease) increase in other current liabilities                                                                            |   |                    | (11,067)                                                                                                      |                           |   | 3,374                                                                                                                           |   |   | 11,491 |   |   | 52,227 |
|   | Deferred income taxes                                                                                                       |   |                    | 8,076                                                                                                         |                           |   | (14,133)                                                                                                                        |   |   | (10,835) |   |   | (10,866) |
|   | Other                                                                                                                       |   |                    | 6,049                                                                                                         |                           |   | 1,672                                                                                                                           |   |   | 11,761 |   |   | 5,092 |
|   | (Increase) decrease in other assets                                                                                         |   |                    | (172)                                                                                                         |                           |   | 540                                                                                                                             |   |   | (1,367) |   |   | 834 |
|   | Payments on other long-term liabilities                                                                                     |   |                    | (3,970)                                                                                                       |                           |   | (504)                                                                                                                           |   |   | (2,220) |   |   | (1,247) |
|   | Net cash flows provided by operating activities                                                                             |   |                    | 112,868                                                                                                       |                           |   | 22,167                                                                                                                          |   |   | 105,306 |   |   | 107,327 |
|   |                                                                                                                        |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Cash flows from investing activities:                                                                                       |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Acquisition of property and equipment                                                                                       |   |                    | (49,110)                                                                                                      |                           |   | (13,753)                                                                                                                        |   |   | (82,521) |   |   | (29,507) |
|   | Sale of investment                                                                                                          |   |                    | 11,626                                                                                                        |                           |   |                      - |   |   |                    - |   |   |                     - |
|   | Business acquisitions, net of cash acquired, and equity investments                                                         |   |                    | (19,486)                                                                                                      |                           |   | (449)                                                                                                                           |   |   |                    - |   |   |                     - |
|   | Change in restricted cash                                                                                                   |   |                    | (538)                                                                                                         |                           |   |                      - |   |   | (452) |   |   | (493,071) |
|   | Purchase of investment                                                                                                      |   |                    |                   - |                           |   |                      - |   |   |                    - |   |   | (9,045) |
|   | Other                                                                                                                       |   |                    | (4,918)                                                                                                       |                           |   | (2,208)                                                                                                                         |   |   | (3,690) |   |   | (13) |
|   | Net cash flows used in investing activities                                                                                 |   |                    | (62,426)                                                                                                      |                           |   | (16,410)                                                                                                                        |   |   | (86,663) |   |   | (531,636) |
|   |                                                                                                                        |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Cash flows from financing activities:                                                                                       |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Proceeds from issuance of long-term debt                                                                                    |   |                    | 405,400                                                                                                       |                           |   | 55,000                                                                                                                          |   |   | 85,420 |   |   | 350,000 |
|   | Deferred loan costs                                                                                                         |   |                    | (784)                                                                                                         |                           |   | (290)                                                                                                                           |   |   |                    - |   |   | (4,357) |
|   | Proceeds from sale of unregistered common stock                                                                             |   |                    |                   - |                           |   |                      - |   |   |                    - |   |   | 5,000 |
|   | Repurchases of common stock                                                                                                 |   |                    |                   - |                           |   |                      - |   |   | (94,340) |   |   | (5,654) |
|   | Repurchase of stock options                                                                                                 |   |                    | (736)                                                                                                         |                           |   |                      - |   |   |                    - |   |   |                     - |
|   | Excess tax benefits from share-based payment arrangements                                                                   |   |                    | 381                                                                                                           |                           |   | 68                                                                                                                              |   |   | 9,480 |   |   | 12,152 |
|   | Exercise of stock options                                                                                                   |   |                    | 727                                                                                                           |                           |   | 56                                                                                                                              |   |   | 6,711 |   |   | 11,221 |
|   | Payments of long-term debt                                                                                                  |   |                    | (457,303)                                                                                                     |                           |   | (96,825)                                                                                                                        |   |   | (38,327) |   |   | (51,190) |
|   | Change in outstanding checks and other                                                                                      |   |                    | (1,113)                                                                                                       |                           |   | 6,149                                                                                                                           |   |   |                    - |   |   |                     - |
|   | Net cash flows (used in) provided by financing activities                                                                   |   |                    | (53,428)                                                                                                      |                           |   | (35,842)                                                                                                                        |   |   | (31,056) |   |   | 317,172 |
|   |                                                                                                                        |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Effect of exchange rate changes on cash                                                                                     |   |                    | 185                                                                                                           |                           |   |                      - |   |   |                    - |   |   |                     - |
|   |                                                                                                                        |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Net decrease in cash and cash equivalents                                                                                   |   |                    | (2,801)                                                                                                       |                           |   | (30,085)                                                                                                                        |   |   | (12,413) |   |   | (107,137) |
|   |                                                                                                                        |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Cash and cash equivalents, beginning of period                                                                              |   |                    | 5,157                                                                                                         |                           |   | 35,242                                                                                                                          |   |   | 47,655 |   |   | 154,792 |
|   |                                                                                                                        |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Cash and cash equivalents, end of period                                                                                    |   | $                       | 2,356                                                                                                         |                           |   | 5,157                                                                                                                           |   |   | 35,242 |   |   | 47,655 |
|   |                                                                                                                        |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Supplemental disclosure of cash flow information:                                                                           |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | Cash paid during the period for interest                                                                                    |   | $                       | 12,717                                                                                                        |                           |   | 8,297                                                                                                                           |   |   | 19,117 |   |   | 14,042 |
|   | Cash paid during the period for income taxes                                                                                |   | $                       | 18,390                                                                                                        |                           |   | 10,914                                                                                                                          |   |   | 41,249 |   |   | 38,580 |
|   |                                                                                                                        |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   | See accompanying notes to the consolidated financial statements.                                                            |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |
|   |                                                                                                                        |   |                    |                                                                                                          |                           |   |                                                                                                                            |   |   |   |   |   |   |

----

----

----

----

----

|   | (In $000s)                               |   |   |   |    |
|--------|------------------------------------------|--------|--------|--------|---------|
|   | Balance, August 31, 2007                 |   |   | $      | 483,584 |   |
|   | Health IQ purchase price adjustment      |   |   |   | 475     |   |
|   | Axia purchase price adjustment and other |   |   |   | 246     |   |
|   | Balance, August 31, 2008                 |   |   | $      | 484,305 |   |
|   | Earn-out payments                        |   |   |   | 291     |   |
|   | Balance, December 31, 2008               |   |   | $      | 484,596 |   |
|   | HealthHonors purchase                    |   |   |   | 11,850  |   |
|   | Balance, December 31, 2009               |   |   | $      | 496,446 |   |

|   |                              |   | Gross Carrying |    |   | Accumulated  |   |   |   |   |
|--------|-----------------------------------|--------|----------------|---------|--------|--------------|--------|--------|--------|--------|
|   | (In $000s)                        |   | Amount         |    |   | Amortization |   |   | Net    |   |
|   |                              |   |           |    |   |         |   |   |   |   |
|   | Customer contracts                |   | $              | 55,240  |   |         | $      | 25,897 |   |   | $ | 29,343 |   |
|   | Acquired technology               |   |           | 26,757  |   |         |   | 19,009 |   |   |   | 7,748 |   |
|   | Patents                           |   |           | 23,405  |   |         |   | 5,419  |   |   |   | 17,986 |   |
|   | Distributor and provider networks |   |           | 8,709   |   |         |   | 3,765  |   |   |   | 4,944 |   |
|   | Other                             |   |           | 12,486  |   |         |   | 1,410  |   |   |   | 11,076 |   |
|   | Total                             |   | $              | 126,597 |   |         | $      | 55,500 |   |   | $ | 71,097 |   |

----

|   |                              |   | Gross Carrying |    |   | Accumulated  |   |   |   |   |
|--------|-----------------------------------|--------|----------------|---------|--------|--------------|--------|--------|--------|--------|
|   | (In $000s)                        |   | Amount         |    |   | Amortization |   |   | Net    |   |
|   |                              |   |           |    |   |         |   |   |   |   |
|   | Customer contracts                |   | $              | 53,140  |   |         | $      | 18,619 |   |   | $ | 34,521 |   |
|   | Acquired technology               |   |           | 22,657  |   |         |   | 15,115 |   |   |   | 7,542 |   |
|   | Patents                           |   |           | 22,840  |   |         |   | 2,397  |   |   |   | 20,443 |   |
|   | Distributor and provider networks |   |           | 8,709   |   |         |   | 2,137  |   |   |   | 6,572 |   |
|   | Other                             |   |           | 5,470   |   |         |   | 838    |   |   |   | 4,632 |   |
|   | Total                             |   | $              | 112,816 |   |         | $      | 39,106 |   |   | $ | 73,710 |   |

|   | (In $000s)               |   |   |
|--------|--------------------------|--------|--------|
|   | Year ending December 31, |   |   |
|   | 2010                     |   | 12,316 |   |
|   | 2011                     |   | 12,376 |   |
|   | 2012                     |   | 10,472 |   |
|   | 2013                     |   | 10,404 |   |
|   | 2014                     |   | 10,404 |   |
|   | 2015 and thereafter      |   | 15,125 |   |
|   | Total                    | $      | 71,097 |   |

|   | (In $000s)     |  Year Ended December 31, |   | Four Months Ended December 31, |   | Year Ended August 31, |   |
|--------|----------------|-------------------------------|--------|--------------------------------|--------|-----------------------|--------|
|   |           | 2009                          |   | 2008                           |   | 2008                  |   | 2007 |   |
|   |           |                          |   |                           |   |                  |   |   |   |   |
|   | Current taxes  |                          |   |                           |   |                  |   |   |   |   |   |   |   |
|   | Federal        | $                             | 835    |                           | $      | 11,946                |   | $ | 47,147 |   | $ | 34,187 |   |
|   | State          |                          | 754    |                           |   | 2,827                 |   |   | 9,569 |   |   | 6,465 |   |
|   | Deferred taxes |                          |   |                           |   |                  |   |   |   |   |   |   |   |
|   | Federal        |                          | 7,638  |                           |   | (11,308               | )      |   | (15,500 | ) |   | (8,618 | ) |
|   | State          |                          | 910    |                           |   | (2,456                | )      |   | (3,476 | ) |   | (1,871 | ) |
|   | Total          | $                             | 10,137 |                           | $      | 1,009                 |   | $ | 37,740 |   | $ | 30,163 |   |

----

|   | (In $000s)                           |   | December 31, |    |   |   | August 31, |   |
|--------|--------------------------------------|--------|--------------|---------|--------|--------|------------|--------|
|   |                                 |   | 2009         |    |   |   | 2008       |   |
|   |                                 |   |         |    |   |   |       |   |
|   | Deferred tax asset:                  |   |         |    |   |   |       |   |   |   |
|   | Accruals and reserves                |   | $            | 10,710  |   |   |       | $      | 9,537 |   |
|   | Deferred compensation                |   |         | 9,253   |   |   |       |   | 8,270 |   |
|   | Share-based payments                 |   |         | 15,877  |   |   |       |   | 17,644 |   |
|   | Net operating loss carryforwards     |   |         | 8,344   |   |   |       |   | 7,936 |   |
|   | Other assets and liabilities         |   |         | 3,381   |   |   |       |   | 2,341 |   |
|   | Advance receipts                     |   |         | 14,220  |   |   |       |   | 16,381 |   |
|   |                                 |   |         | 61,785  |   |   |       |   | 62,109 |   |
|   | Valuation allowance                  |   |         | (1,648  | )      |   |       |   | (1,239 | ) |
|   |                                 |   |         | 60,137  |   |   |       |   | 60,870 |   |
|   | Deferred tax liability:              |   |         |    |   |   |       |   |   |   |
|   | Property and equipment               |   |         | (22,668 | )      |   |       |   | (13,895 | ) |
|   | Intangible assets                    |   |         | (27,805 | )      |   |       |   | (31,316 | ) |
|   | Other assets and liabilities         |   |         | (84     | )      |   |       |   | (75 | ) |
|   |                                 |   |         | (50,557 | )      |   |       |   | (45,286 | ) |
|   | Net deferred tax asset               |   | $            | 9,580   |   |   |       | $      | 15,584 |   |
|   |                                 |   |         |    |   |   |       |   |   |   |
|   | Net current deferred tax asset       |   | $            | 24,197  |   |   |       | $      | 24,948 |   |
|   | Net long-term deferred tax liability |   |         | (14,617 | )      |   |       |   | (9,364 | ) |
|   |                                 |   | $            | 9,580   |   |   |       | $      | 15,584 |   |

----

|   | (In $000s)                                          |   | Year Ended December 31, |   | Four Months Ended December 31, |   | Year Ended August 31, |   |
|--------|-----------------------------------------------------|--------|-------------------------|--------|--------------------------------|--------|-----------------------|--------|
|   |                                                |   | 2009                    |   | 2008                           |   | 2008                  |   | 2007 |   |
|   |                                                |   |                    |   |                           |   |                  |   |   |   |   |
|   | Statutory federal income tax                        |   | $                       | 7,179  |                           | $      | 610                   |   | $ | 32,394 |   | $ | 26,349 |   |
|   | State income taxes, less federal income tax benefit |   |                    | 970    |                           |   | 62                    |   |   | 3,910 |   |   | 3,133 |   |
|   | Other                                               |   |                    | 1,988  |                           |   | 337                   |   |   | 1,436 |   |   | 681 |   |
|   | Income tax expense                                  |   | $                       | 10,137 |                           | $      | 1,009                 |   | $ | 37,740 |   | $ | 30,163 |   |

|   | (In $000s)                                                         |   |   |   |   |
|--------|--------------------------------------------------------------------|--------|--------|--------|--------|
|   |                                                               |   |   |   |   |
|   | Unrecognized tax benefits at September 1, 2007                     | $      | 11,050 |   |   |
|   | Decreases based on tax positions related to fiscal 2008            |   | (8,534 | )      |   |
|   | Lapse of statutes of limitation                                    |   | (140   | )      |   |
|   | Unrecognized tax benefits at August 31, 2008 and December 31, 2008 |   | 2,376  |   |   |
|   | Change based upon settlements with taxing authorities              |   | (2,376 | )      |   |
|   | Increases based upon tax positions related to fiscal 2009          |   | 1,072  |   |   |
|   | Unrecognized tax benefits at December 31, 2009                     | $      | 1,072  |   |   |

----

|   | (In $000s)                                                     |   | Foreign currency exchange contracts |   | Interest rate swap agreements |   |   |
|--------|----------------------------------------------------------------|--------|-------------------------------------|--------|-------------------------------|--------|--------|
|   | Assets:                                                        |   |                                |   |                          |   |   |
|   |                                                           |   |                                |   |                          |   |   |
|   |  Derivatives designated as hedging instruments:           |   |                                |   |                          |   |   |
|   |      Other assets                     |   | $—                            |   | $88                           |   |   |
|   | Total assets                                                   |   | $—                            |   | $88                           |   |   |
|   |                                                           |   |                                |   |                          |   |   |
|   |  Liabilities:                                             |   |                                |   |                          |   |   |
|   |   Derivatives not designated as hedging instruments: |   |                                |   |                          |   |   |
|   |      Accrued liabilities              |   | $12                                 |   | $—                      |   |   |
|   |                                                           |   |                                |   |                          |   |   |
|   |   Derivatives designated as hedging instruments:     |   |                                |   |                          |   |   |
|   |      Accrued liabilities              |   | —                             |   | 236                           |   |   |
|   |      Other long-term liabilities      |   | —                             |   | 6,942                         |   |   |
|   | Total liabilities                                              |   | $12                                 |   | $7,178                        |   |   |
|   |                                                           |   |                                |   |                          |   |   |

----

|   |   |  Swap # |   | Original NotionalAmount (in $000s) |   | Fixed InterestRate |   | Termination Date  |   |   |   |   |   |
|--------|--------|--------------|--------|------------------------------------|--------|--------------------|--------|-------------------|--------|--------|--------|--------|--------|
|   |   | 1            |   | $184,000                           |   | 4.995              | %      | March 31, 2010    | (1)    |   |   |   |   |
|   |   | 2            |   | 46,000                             |   | 4.995              | %      | March 31, 2010    | (2)    |   |   |   |   |
|   |   | 3            |   | 40,000                             |   | 3.433              | %      | December 30, 2011 |   |   |   |   |   |
|   |   | 4            |   | 50,000                             |   | 3.688              | %      | December 30, 2011 |   |   |   |   |   |
|   |   | 5            |   | 40,000                             |   | 3.855              | %      | December 30, 2011 | (3)    |   |   |   |   |
|   |   | 6            |   | 30,000                             |   | 3.760              | %      | March 30, 2011    | (4)    |   |   |   |   |
|   |   | 7            |   | 57,500                             |   | 3.385              | %      | December 31, 2013 | (5)    |   |   |   |   |
|   |   | 8            |   | 57,500                             |   | 3.375              | %      | December 31, 2013 | (6)    |   |   |   |   |

| (1) The principal value of this swap agreement amortizes over a 39-month period.  During the |
|--------------------------------------------------------------------------------------------------------|
| three months ended December 31, 2009, the notional amount of this swap was $16 million.                |

|                                                                  |   | Year Ended December 31, 2009                                                     |
|-----------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|
|     Derivatives inCash Flow Hedging Relationships |   |  Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) |   | Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |   |  Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |
| Interest rate swap agreements, gross of tax effect                    |   | $(2,541)                                                                         |   | Interest expense |   | $(6,742)  |

----

|   |   |              |   | Notional      |   |   |
|--------|--------|-------------------|--------|---------------|--------|--------|
|   |   | Foreign Currency  |   | Amount (000s) |   |   |
|   |   | Australian Dollar |   | AUD 1,180     |   |   |

|   | Level 1:  Quoted prices in active markets for identical assets or liabilities;                                                                                                                                                                                                                                                                                                   |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | Level 2:  Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-based valuation techniques in which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and  |   |
|   | Level 3:  Unobservable inputs that are supported by little or no market activity and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.                                                                                                                                                              |   |

----

|   | (In 000s)                           |   |   |    Level 2 |   |   |    Level 3 |   |   |  Gross Fair Value |   |   |    Netting (1) |   |   |   Net Fair Value |   |   |   |
|--------|-------------------------------------|--------|--------|---------------------------|--------|--------|---------------------------|--------|--------|------------------------|--------|--------|-------------------------------|--------|--------|----------------------------|--------|--------|--------|
|   | Assets:                             |   |   |                      |   |   |                      |   |   |                   |   |   |                          |   |   |                       |   |   |   |
|   | Interest rate swap agreements       |   | $      | 88                        |   | $      | —                   |   | $      | 88                     |   | $      | —                       |   | $      | 88                         |   |   |   |
|   | Liabilities:                        |   |   |                      |   |   |                      |   |   |                   |   |   |                          |   |   |                       |   |   |   |
|   | Foreign currency exchange contracts |   | $      | 12                        |   | $      | —                   |   | $      | 12                     |   | $      | —                       |   | $      | 12                         |   |   |   |
|   | Interest rate swap agreements       |   |   | 7,178                     |   |   | —                   |   |   | 7,178                  |   |   | —                       |   |   | 7,178                      |   |   |   |
|   | Contingent consideration liability  |   |   | —                   |   |   | 3,043                     |   |   | 3,043                  |   |   | —                       |   |   | 3,043                      |   |   |   |

|   | (In $000s)                       |   |   |   | ContingentConsideration Liability  |   |   |
|--------|----------------------------------|--------|--------|--------|-----------------------------------------|--------|--------|
|   | Balance, January 1, 2009         |   |   | $      | —                                 |   |   |
|   | Initial recognition of liability |   |   |   | 3,043                                   |   |   |
|   | Balance, December 31, 2009       |   |   | $      | 3,043                                   |   |   |

| ·   | reporting units measured at fair value in the first step of a goodwill impairment test; and |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | indefinite-lived intangible assets measured at fair value for impairment assessment. |
|--------------------|--------------------------------------------------------------------------------------|

----

|   | · | Cash and cash equivalents – The carrying amount of $2.4 million approximates fair value because of the short maturity of those instruments (less than three months). |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Long-term debt –The estimated fair value of outstanding borrowings under the Third Amended Credit Agreement is based on the average of the prices set by the issuing bank given current market conditions and is not necessarily indicative of the amount we could realize in a current market exchange. The estimated fair value and carrying amount of outstanding borrowings under the Third Amended Credit Agreement at December 31, 2009 are $239.8 million and $256.0 million, respectively. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (In $000s)               |   |   |    |   |
|--------|--------------------------|--------|--------|---------|--------|
|   | Year ending December 31, |   |   |    |   |
|   | 2010                     |   |   | 2,000   |   |
|   | 2011                     |   |   | 64,000  |   |
|   | 2012                     |   |   | 2,000   |   |
|   | 2013                     |   |   | 188,000 |   |
|   | 2014                     |   |   | — |   |
|   | 2015 and thereafter      |   |   | — |   |
|   | Total                    |   | $      | 256,000 |   |

----

|                                                                                                                                                                                                                                                                                                                                                         |   | (In 000s)                                                      |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                         |   |                                                           |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   | Accrued restructuring and related charges at January 1, 2009   | $      | 10,460 |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   | Additions                                                      |   | 191    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   | Payments                                                       |   | (8,082 | )      |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   | Adjustments (1)                                                |   | (1,162 | )      |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   | Accrued restructuring and related charges at December 31, 2009 | $      | 1,407  |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |                                                           |   |   |   |   |   |   |   |
| (1) Adjustments for the year ended December 31, 2009 resulted from actual severance amounts differing from initial estimates due to employees who were expected to be terminated but were instead transitioned to new roles, as well as a favorable adjustment to lease termination costs due to unanticipated demand for certain unused office space.  |

----

----

----

|   | (In $000s)                   | Operating |    |
|--------|------------------------------|-----------|---------|
|   | Year ending December 31,     | Leases    |    |
|   | 2010                         | $         | 14,380  |   |
|   | 2011                         |      | 13,593  |   |
|   | 2012                         |      | 11,931  |   |
|   | 2013                         |      | 10,363  |   |
|   | 2014                         |      | 9,385   |   |
|   | 2015 and thereafter          |      | 55,982  |   |
|   | Total minimum lease payments | $         | 115,634 |   |

----

|   |                                                                              |   | Year Ended   |   | Four Months Ended |   | Year Ended |   |       |
|--------|-----------------------------------------------------------------------------------|--------|--------------|--------|-------------------|--------|------------|--------|------------|
|   |                                                                              |   | December 31, |   | December 31,      |   | August 31, |   | August 31, |   |   |
|   | (In millions)                                                                     |   | 2009         |   | 2008              |   | 2008       |   | 2007       |   |   |
|   | Total share-based compensation                                                    |   | $            | 10.2   |              | $      | 14.9       | (1)    | $          | 16.5 |   | $ | 18.8 |   |   |
|   | Share-based compensation included in cost of services                             |   |         | 4.4    |              |   | 9.1        |   |       | 8.0 |   |   | 8.4 |   |   |
|   | Share-based compensation included in selling, general and administrative expenses |   |         | 5.8    |              |   | 5.8        |   |       | 8.5 |   |   | 10.4 |   |   |
|   | Total income tax benefit recognized                                               |   |         | 4.0    |              |   | 5.9        |   |       | 6.5 |   |   | 7.4 |   |   |

|   |                                              |   | Year Ended December 31, |    |   | Four Months Ended December 31, |   |    |   | Year Ended August 31, |
|--------|---------------------------------------------------|--------|-------------------------|---------|--------|--------------------------------|--------|---------|--------|-----------------------|
|   |                                              |   | 2009                    |    |   | 2008                           |   |    |   | 2008                  |   |   |   | 2007 |   |
|   | Weighted average grant-date fair value of options |   | $                       | 6.72    |   |                           | $      | 4.97    |   |                  |   | $ | 22.16 |   |   |   | $ | 22.08 |   |
|   |                                              |   |                    |    |   |                           |   |    |   |                  |   |   |   |   |   |   |   |   |   |
|   | Assumptions:                                      |   |                    |    |   |                           |   |    |   |                  |   |   |   |   |   |   |   |   |   |
|   | Expected volatility                               |   |                    | 51.6    | %      |                           |   | 46.5    | %      |                  |   |   | 37.8 | % |   |   |   | 48.7 | % |
|   | Expected dividends                                |   |                    | — |   |                           |   | — |   |                  |   |   | — |   |   |   |   | — |   |
|   | Expected term (in years)                          |   |                    | 6.1     |   |                           |   | 5.1     |   |                  |   |   | 6.6 |   |   |   |   | 5.5 |   |
|   | Risk-free rate                                    |   |                    | 2.5     | %      |                           |   | 3.6     | %      |                  |   |   | 4.2 | % |   |   |   | 5.1 | % |

----

|   | Options                          |   | Shares (000s) |   |   |   | WeightedAverage ExercisePrice |   |   |   | Weighted AverageRemainingContractual Term |   |   |   | Aggregate Intrinsic Value ($000s) |   |
|--------|----------------------------------|--------|---------------|--------|--------|--------|-------------------------------|--------|--------|--------|------------------------------------------------|--------|--------|--------|-----------------------------------|--------|
|   | Outstanding at January 1, 2009   |   | 4,124         |   |   |   | $                             | 20.20  |   |   |                                           |   |   |   |                              |   |   |   |
|   | Granted                          |   | 1,153         |   |   |   |                          | 11.69  |   |   |                                           |   |   |   |                              |   |   |   |
|   | Exercised                        |   | (115          | )      |   |   |                          | 6.50   |   |   |                                           |   |   |   |                              |   |   |   |
|   | Forfeited or expired             |   | (226          | )      |   |   |                          | 21.73  |   |   |                                           |   |   |   |                              |   |   |   |
|   | Outstanding at December 31, 2009 |   | 4,936         |   |   |   |                          | 18.46  |   |   |                                           | 4.8    |   |   |                              | $      | 22,763 |   |
|   | Exercisable at December 31, 2009 |   | 3,433         |   |   |   |                          | 19.45  |   |   |                                           | 3.3    |   |   |                              | $      | 13,702 |   |

|   | Nonvested Shares               |   | Shares (000s) |   | Weighted Average Grant Date Fair Value |   |
|--------|--------------------------------|--------|---------------|--------|----------------------------------------|--------|
|   | Nonvested at January 1, 2009   |   | 501           |   | $                                      | 41.01  |   |
|   | Granted                        |   | 666           |   |                                   | 11.10  |   |
|   | Vested                         |   | (88           | )      |                                   | 44.19  |   |
|   | Forfeited                      |   | (64           | )      |                                   | 23.24  |   |
|   | Nonvested at December 31, 2009 |   | 1,015         |   |                                   | 22.21  |   |

----

|   |    (In 000s except per share data)                        |          Year Ended        December 31, |   | Four Months Ended December 31, |   |   | Year Ended August 31, |   |
|--------|--------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|-----------------------|--------|
|   | Numerator:                                                               | 2009                                                                                                               |   | 2008                           |   |   | 2008                  |   |   |   | 2007 |   |
|   | Net income - numerator for basic earnings per share                      | $                                                                                                                  | 10,374 |                           | $      | 734    |                  |   | $ | 54,815 |   |   |   | $ | 45,121 |   |
|   |                                                                     |                                                                                                               |   |                           |   |   |                  |   |   |   |   |   |   |   |   |   |
|   | Denominator:                                                             |                                                                                                               |   |                           |   |   |                  |   |   |   |   |   |   |   |   |   |
|   | Shares used for basic earnings per share                                 |                                                                                                               | 33,730 |                           |   | 33,616 |                  |   |   | 34,977 |   |   |   |   | 35,049 |   |
|   | Effect of dilutive stock options and restricted stock units outstanding: |                                                                                                               |   |                           |   |   |                  |   |   |   |   |   |   |   |   |   |
|   | Non-qualified stock options                                              |                                                                                                               | 336    |                           |   | 270    |                  |   |   | 1,477 |   |   |   |   | 1,887 |   |
|   | Restricted stock units                                                   |                                                                                                               | 293    |                           |   | 152    |                  |   |   | 143 |   |   |   |   | 66 |   |
|   | Shares used for diluted earnings per share                               |                                                                                                               | 34,359 |                           |   | 34,038 |                  |   |   | 36,597 |   |   |   |   | 37,002 |   |
|   |                                                                     |                                                                                                               |   |                           |   |   |                  |   |   |   |   |   |   |   |   |   |
|   | Earnings per share:                                                      |                                                                                                               |   |                           |   |   |                  |   |   |   |   |   |   |   |   |   |
|   | Basic                                                                    | $                                                                                                                  | 0.31   |                           | $      | 0.02   |                  |   | $ | 1.57 |   |   |   | $ | 1.29 |   |
|   | Diluted                                                                  | $                                                                                                                  | 0.30   |                           | $      | 0.02   |                  |   | $ | 1.50 |   |   |   | $ | 1.22 |   |
|   |                                                                     |                                                                                                               |   |                           |   |   |                  |   |   |   |   |   |   |   |   |   |
|   | Dilutive securities outstanding not included in the computation          |                                                                                                               |   |                           |   |   |                  |   |   |   |   |   |   |   |   |   |
|   | of earnings per share because their effect is antidilutive:              |                                                                                                               | 3,707  |                           |   | 3,088  |                  |   |   | 1,658 |   |   |   |   | 1,117 |   |

----

|   | (In 000s except per share data)                               |   |   | Four Months Ended December 31, 2007 |   |   |
|--------|---------------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|
|   | Revenues                                                      |   | $      | 234,277                             |   |   |
|   | Cost of services (exclusive of depreciation and amortization) |   |   | 163,750                             |   |   |
|   | Selling, general and administrative expenses                  |   |   | 21,741                              |   |   |
|   | Depreciation and amortization                                 |   |   | 13,682                              |   |   |
|   |                                                          |   |   |                                |   |   |
|   | Operating income                                              |   |   | 35,104                              |   |   |
|   | Interest expense                                              |   |   | 7,118                               |   |   |
|   |                                                          |   |   |                                |   |   |
|   | Income before income taxes                                    |   |   | 27,986                              |   |   |
|   | Income tax expense                                            |   |   | 11,506                              |   |   |
|   |                                                          |   |   |                                |   |   |
|   | Net income                                                    |   | $      | 16,480                              |   |   |
|   |                                                          |   |   |                                |   |   |
|   | Earnings per share:                                           |   |   |                                |   |   |
|   | Basic                                                         |   | $      | 0.46                                |   |   |
|   |                                                          |   |   |                                |   |   |
|   | Diluted                                                       |   | $      | 0.44                                |   |   |
|   |                                                          |   |   |                                |   |   |
|   | Weighted average common shares and equivalents                |   |   |                                |   |   |
|   | Basic                                                         |   |   | 35,770                              |   |   |
|   | Diluted                                                       |   |   | 37,739                              |   |   |

----

|   | (In 000s)                                                   | Four Months Ended December 31, 2007 |    |
|--------|-------------------------------------------------------------|-------------------------------------|---------|
|   |                                                        |                                |    |   |
|   | Cash flows from operating activities:                       |                                |    |   |
|   | Net income                                                  | $                                   | 16,480  |   |
|   | Adjustments to reconcile net income to net cash provided by |                                |    |   |
|   | operating activities, net of business acquisitions:         |                                |    |   |
|   | Depreciation and amortization                               |                                | 13,682  |   |
|   | Loss on disposal of property and equipment                  |                                | 221     |   |
|   | Amortization of deferred loan costs                         |                                | 389     |   |
|   | Share-based employee compensation expense                   |                                | 5,057   |   |
|   | Excess tax benefits from share-based payment arrangements   |                                | (6,072  | ) |
|   | Increase in accounts receivable, net                        |                                | (12,084 | ) |
|   | Decrease in other current assets                            |                                | 1,513   |   |
|   | Decrease in accounts payable                                |                                | (2,429  | ) |
|   | Increase in accrued salaries and benefits                   |                                | 1,848   |   |
|   | Increase  in other current liabilities            |                                | 10,257  |   |
|   | Deferred income taxes                                       |                                | (3,025  | ) |
|   | Other                                                       |                                | 3,951   |   |
|   | Decrease in other assets                                    |                                | 303     |   |
|   | Payments on other long-term liabilities                     |                                | (111    | ) |
|   | Net cash flows provided by operating activities             |                                | 29,980  |   |
|   |                                                        |                                |    |   |
|   | Cash flows from investing activities:                       |                                |    |   |
|   | Acquisition of property and equipment                       |                                | (25,045 | ) |
|   | Acquisitions, net of cash acquired                          |                                | (15     | ) |
|   | Net cash flows used in investing activities                 |                                | (25,060 | ) |
|   |                                                        |                                |    |   |
|   | Cash flows from financing activities:                       |                                |    |   |
|   | Repurchases of common stock                                 |                                | (132    | ) |
|   | Excess tax benefits from share-based payment arrangements   |                                | 6,072   |   |
|   | Exercise of stock options                                   |                                | 3,070   |   |
|   | Payments of long-term debt                                  |                                | (21,070 | ) |
|   | Net cash flows used in financing activities                 |                                | (12,060 | ) |
|   |                                                        |                                |    |   |
|   | Net decrease in cash and cash equivalents                   |                                | (7,140  | ) |
|   |                                                        |                                |    |   |
|   | Cash and cash equivalents, beginning of period              |                                | 47,655  |   |
|   |                                                        |                                |    |   |
|   | Cash and cash equivalents, end of period                    | $                                   | 40,515  |   |

----

----

|                                  |   |   |   |   |    |   |   |   |   |    |   |   |   |
|---------------------------------------|--------|--------|--------|--------|---------|--------|--------|--------|--------|---------|--------|--------|--------|
| (In thousands, except per share data) |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |   |
|                                  |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |   |
| Twelve Months EndedDecember 31, 2009  |   |   |   | First  |    |   |   | Second |   |    |   | Third  |   |   |   | Fourth |   |
|                                  |   |   |   |   | (1)     |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                              |   |   |   | $      | 182,736 |   |   |   | $      | 177,836 |   |   |   | $ | 181,642 |   |   |   | $ | 175,212 |   |
| Gross margin                          |   |   |   | $      | 41,112  |   |   |   | $      | 41,534  |   |   |   | $ | 40,627 |   |   |   | $ | 35,720 |   |
| Income (loss) before income taxes     |   |   |   | $      | (22,572 | )      |   |   | $      | 15,534  |   |   |   | $ | 15,484 |   |   |   | $ | 12,065 |   |
| Net income (loss)                     |   |   |   | $      | (14,813 | )      |   |   | $      | 8,876   |   |   |   | $ | 8,802 |   |   |   | $ | 7,509 |   |
|                                  |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share (2)   |   |   |   | $      | (0.44   | )      |   |   | $      | 0.26    |   |   |   | $ | 0.26 |   |   |   | $ | 0.22 |   |
| Diluted earnings (loss) per share (2) |   |   |   | $      | (0.44   | )(3)   |   |   | $      | 0.26    |   |   |   | $ | 0.26 |   |   |   | $ | 0.22 |   |
|                                  |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Twelve Months EndedDecember 31, 2008  |   |   |   |   | First   |   |   |   |   | Second  |   |   |   |   | Third |   |   |   |   | Fourth |   |
|                                  |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   | (4) |   |
| Revenues                              |   |   |   | $      | 180,940 |   |   |   | $      | 193,044 |   |   |   | $ | 187,448 |   |   |   | $ | 185,272 |   |
| Gross margin                          |   |   |   | $      | 44,324  |   |   |   | $      | 55,604  |   |   |   | $ | 52,504 |   |   |   | $ | 40,438 |   |
| Income (loss) before income taxes     |   |   |   | $      | 17,366  |   |   |   | $      | 27,673  |   |   |   | $ | 26,012 |   |   |   | $ | (4,744 | ) |
| Net income (loss)                     |   |   |   | $      | 10,203  |   |   |   | $      | 16,325  |   |   |   | $ | 15,623 |   |   |   | $ | (3,087 | ) |
|                                  |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share (2)   |   |   |   | $      | 0.28    |   |   |   | $      | 0.48    |   |   |   | $ | 0.46 |   |   |   | $ | (0.09 | ) |
| Diluted earnings (loss) per share (2) |   |   |   | $      | 0.27    |   |   |   | $      | 0.46    |   |   |   | $ | 0.45 |   |   |   | $ | (0.09 | ) (3) |

| (1)   | Includes a legal settlement of approximately $40.0 million. |
|-----------------|-------------------------------------------------------------|

| (2)   | We calculated earnings per share for each of the quarters based on the weighted average number of shares and dilutive options outstanding for each period.  Accordingly, the sum of the quarters may not necessarily be equal to the full year income per share. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The assumed exercise of stock-based compensation awards for this period was not considered because the impact would have been anti-dilutive. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Includes restructuring and impairment charges of approximately $14.6 million. |
|-----------------|-------------------------------------------------------------------------------|

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Item 9.  

Item 9A.  

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Item 9B. 

Item 10.  

Item 11. 

Item 12.

Item 13. 

Item 14. 

Item 15. 

| (a) | The following documents are filed as part of this Annual Report on Form 10-K: |
|-----|-------------------------------------------------------------------------------|

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| 2.1    |   | Stock Purchase Agreement dated October 11, 2006 among Healthways, Inc., Axia Health Management, Inc., and Axia Health Management LLC [incorporated herein by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K dated December 1, 2006]                                                                                                                                                                                                                                |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.1    |   | Restated Certificate of Incorporation for Healthways, Inc., as amended [incorporated by reference to Exhibit 3.1 to Form 10-Q of the Company’s fiscal quarter ended February 29, 2008]                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.2    |   | Bylaws, as amended [incorporated by reference to Exhibit 3.1 to Form 10-Q of the Company’s fiscal quarter ended February 29, 2004]                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.3    |   | Amendment to bylaws, as amended [incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated November 15, 2007]                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.4    |   | Amendment No. 2 to bylaws, as amended [incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated September 3, 2008]                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.1    |   | Article IV of the Company's Restated Certificate of Incorporation (included in Exhibit 3.1)                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.2    |   | Rights Agreement, dated June 19, 2000, between American Healthways, Inc. and SunTrust Bank, including the Form of Rights Certificate (Exhibit A), the Form of Summary of Rights (Exhibit B) and the Form of Certificate of Amendment to the Restated Certificate of Incorporation of American Healthways, Inc. (Exhibit C) [incorporated herein by reference to Exhibit 4 to the Company’s Current Report on Form 8-K dated June 21, 2000]                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.3    |   | Amendment No. 1 to Rights Agreement, dated June 15, 2004, between American Healthways, Inc. and SunTrust Bank [incorporated herein by reference to Exhibit 4 to the Company’s Current Report on Form 8-K dated June 17, 2004]                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.4    |   | Amendment No. 2 to Rights Agreement, dated July 19, 2006, between Healthways, Inc. and SunTrust Bank [incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated July 19, 2006]                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.1   |   | Third Amended and Restated Revolving Credit and Term Loan Agreement (“Third Amended Credit Agreement”) between the Company and SunTrust Bank as Administrative Agent, U.S. Bank National Association and Regions Bank as Co-Documentation Agents, and JPMorgan Chase Bank, N.A., and Fifth Third Bank, N.A. as Co-Syndication Agents dated December 1, 2006 [incorporated by reference to Exhibit 10.1 to Form 10-Q of the Company’s fiscal quarter ended November 30, 2006] |

----

|   |   |                                                                                                                                                                                                                                                                                                                       |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.2   |   | First Amendment to Third Amended Credit Agreement, dated February 20, 2007 by and among the Company, various lenders, and SunTrust Bank, as Administrative Agent, Issuing Bank and Swingline Lender [incorporated by reference to Exhibit 10.1 to Form 10-Q of the Company’s fiscal quarter ended February 28, 2007] |
|   |   |                                                                                                                                                                                                                                                                                                                       |
| 10.3   |   | Second Amendment to Third Amended Credit Agreement, dated April 11, 2007 by and among the Company, various lenders, and SunTrust Bank, as Administrative Agent, Issuing Bank and Swingline Lender [incorporated by reference to Exhibit 10.1 to Form 10-Q of the Company’s fiscal quarter ended May 31, 2007]        |
|   |   |                                                                                                                                                                                                                                                                                                                       |
| 10.4   |   | Third Amendment to Third Amended Credit Agreement, dated July 16, 2007 by and among the Company, various lenders, and SunTrust Bank, as Administrative Agent, Issuing Bank and Swingline Lender [incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated July 18, 2007]          |
|   |   |                                                                                                                                                                                                                                                                                                                       |
| 10.5   |   | Fourth Amendment to Third Amended Credit Agreement, dated August 15, 2008 by and among the Company, various lenders, and SunTrust Bank, as Administrative Agent, Issuing Bank and Swingline Lender [incorporated by reference to Exhibit 10.5 to Form 10-K of the Company’s fiscal year ended August 31, 2008]       |
|   |   |                                                                                                                                                                                                                                                                                                                       |
| 10.6   |   | Fifth Amendment to Third Amended Credit Agreement, dated August 22, 2008 by and among the Company, various lenders, and SunTrust Bank, as Administrative Agent, Issuing Bank and Swingline Lender [incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated August 25, 2008]      |
|   |   |                                                                                                                                                                                                                                                                                                                       |
| 10.7   |   | Sixth Amendment to Third Amended Credit Agreement, dated March 5, 2009 by and among the Company, various lenders, and SunTrust Bank, as Administrative Agent, Issuing Bank and Swingline Lender [incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated March 13, 2009]         |
|   |   |                                                                                                                                                                                                                                                                                                                       |
| 10.8   |   | Office Lease by and between Healthways, Inc. and Highwoods/Tennessee Holdings, L.P., dated as of May 4, 2006 [incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated May 5, 2006]                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                       |
| 10.9   |   | Consulting Agreement between the Company and Rincon Advisors, LLC dated October 11, 2006 [incorporated by reference to Exhibit 10.2 to Form 10-Q of the Company’s fiscal quarter ended November 30, 2006]                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                       |
| 10.10  |   | Subscription Agreement between the Company, L. Ben Lytle, and the L. Ben Lytle Amended and Restated Revocable Living Trust, U/A dated October 11, 2006 [incorporated by reference to Exhibit 10.3 to Form 10-Q of the Company’s fiscal quarter ended November 30, 2006]                                              |

----

|                                        |   |                                                                                                                                                                                                                               |
|---------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Management Contracts and Compensatory Plans |
|                                        |   |                                                                                                                                                                                                                               |
| 10.11                                       |   | Employment Agreement dated December 19, 2008 between the Company and Ben R. Leedle [incorporated by reference to Exhibit 10.1 to the Company’s Form 10-QT of the Company’s transition period ended December 31, 2008]  |
|                                        |   |                                                                                                                                                                                                                               |
| 10.12                                       |   | Employment Agreement dated December 19, 2008 between the Company and Mary A. Chaput [incorporated by reference to Exhibit 10.2 to the Company’s Form 10-QT of the Company’s transition period ended December 31, 2008] |
|                                        |   |                                                                                                                                                                                                                               |
| 10.13                                       |   | Employment Agreement dated December 19, 2008 between the Company and Anne Wilkins [incorporated by reference to Exhibit 10.3 to Form 10-QT of the Company’s transition period ended December 31, 2008]                       |
|                                        |   |                                                                                                                                                                                                                               |
| 10.14                                       |   | Employment Agreement dated December 10, 2008 between the Company and Matthew Kelliher [incorporated by reference to Exhibit 10.4 to Form 10-QT of the Company’s transition period ended December 31, 2008]                   |
|                                        |   |                                                                                                                                                                                                                               |
| 10.15                                       |   | Employment Agreement dated October 11, 2008 between the Company and Stefen F. Brueckner [incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated October 16, 2008]                       |
|                                        |   |                                                                                                                                                                                                                               |
| 10.16                                       |   | Employment Agreement dated January 7, 2009 between the Company and Alfred Lumsdaine [incorporated by reference to Exhibit 10.5 to Form 10-QT of the Company’s transition period ended December 31, 2008]                     |
|                                        |   |                                                                                                                                                                                                                               |
| 10.17                                       |   | Employment Agreement dated January 7, 2009 between the Company and Chris Cigarran                                                                                                                                                  |
|                                        |   |                                                                                                                                                                                                                               |
| 10.18                                       |   | Employment Agreement dated January 7, 2009 between the Company and R. Claiborne Richards, Jr.                                                                                                                                      |
|                                        |   |                                                                                                                                                                                                                               |
| 10.19                                       |   | Long-term performance award agreement dated September 28, 2006 between the Company and Matthew E. Kelliher [incorporated by reference to Exhibit 10.2 to Form 10-Q of the Company’s fiscal quarter ended February 28, 2007]  |
|                                        |   |                                                                                                                                                                                                                               |
| 10.20                                       |   | Capital Accumulation Plan, as amended and restated [incorporated by reference to Exhibit 10.1 to Form 10-Q of the Company’s fiscal quarter ended November 30, 2008]                                                          |
|                                        |   |                                                                                                                                                                                                                               |
| 10.21                                       |   | Form of Indemnification Agreement by and among the Company and the Company's directors [incorporated by reference to Exhibit 10.15 to Registration Statement on Form S-1 (Registration No. 33-41119)]                              |
|                                        |   |                                                                                                                                                                                                                               |
| 10.22                                       |   | 2007 Stock Incentive Plan [incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated February 8, 2007]                                                                                     |

----

|   |   |                                                                                                                                                                                                                                |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.23  |   | 1996 Stock Incentive Plan, as amended  [incorporated by reference to Exhibit 10.20 to Form 10-K of the Company’s fiscal year ended August 31, 2006]                                                                 |
|   |   |                                                                                                                                                                                                                                |
| 10.24  |   | 2001 Amended and Restated Stock Option Plan, as amended  [incorporated by reference to Exhibit 10.21 to Form 10-K of the Company’s fiscal year ended August 31, 2006]                                               |
|   |   |                                                                                                                                                                                                                                |
| 10.25  |   | Form of Non-Qualified Stock Option Agreement under the Company’s 2007 Stock Incentive Plan [incorporated by reference to Exhibit 10.24 to Form 10-K of the Company’s fiscal year ended August 31, 2007]                 |
|   |   |                                                                                                                                                                                                                                |
| 10.26  |   | Form of Restricted Stock Unit Award Agreement under the Company’s 2007 Stock Incentive Plan [incorporated by reference to Exhibit 10.25 to Form 10-K of the Company’s fiscal year ended August 31, 2007]                |
|   |   |                                                                                                                                                                                                                                |
| 10.27  |   | Form of Non-Qualified Stock Option Agreement (for Directors) under the Company’s 2007 Stock Incentive Plan [incorporated by reference to Exhibit 10.30 to Form 10-K of the Company’s fiscal year ended August 31, 2008] |
|   |   |                                                                                                                                                                                                                                |
| 10.28  |   | 2007 Stock Incentive Plan Performance Cash Award Agreement Company’s [incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated March 4, 2009]                                        |
|   |   |                                                                                                                                                                                                                                |
| 21     |   | Subsidiary List                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                |
| 23     |   | Consent of Ernst & Young LLP                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                |
| 31.1   |   | Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002 made by Ben R. Leedle, Jr., Chief Executive Officer                                                                                                         |
|   |   |                                                                                                                                                                                                                                |
| 31.2   |   | Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002 made by Mary A. Chaput, Chief Financial Officer                                                                                                             |
|   |   |                                                                                                                                                                                                                                |
| 32     |   | Certification Pursuant to 18 U.S.C section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 made by Ben R. Leedle, Jr., Chief Executive Officer and Mary A. Chaput, Chief Financial Officer                |

| (b) | Exhibits |
|-----|----------|

|   | Refer to Item 15(a)(3) above. |
|--------|-------------------------------|

| (c) | Not applicable |
|-----|----------------|

----

|           |              | HEALTHWAYS, INC                      |
|----------------|-------------------|-------------------------------------------|
| March 16, 2010 |   By:   | /s/ Ben R. Leedle, Jr.                    |
|           |              | Ben R. Leedle, Jr.Chief Executive Officer |

| Signature                                                            |   | Title                                                              |   | Date                       |
|----------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|----------------------------|
|                                                                 |   |                                                               |   |                       |
| /s/ Ben R. Leedle, Jr.                                               |   | Chief Executive Officer and Director (Principal                    |   |  March 16, 2010       |
|     Ben R. Leedle, Jr.                           |   | Executive Officer)                                                 |   |                       |
|  /s/ Mary A. Chaput                                             |   |  Chief Financial Officer (Principal Financial Officer)        |   |   March 16, 2010 |
|     Mary A. Chaput                               |   |                                                               |   |                       |
|  /s/ Alfred Lumsdaine                                           |   |  Chief Accounting Officer (Principal Accounting Officer) |   |  March 16, 2010       |
|     Alfred Lumsdaine /s/ Thomas G. Cigarran |   |   Chairman of the Board and Director                     |   |   March 16, 2010 |
|     Thomas G. Cigarran                           |   |                                                               |   |                       |
|                                                                 |   |                                                               |   |                       |
| /s/ John A. Wickens                                                  |   | Director                                                           |   |  March 16, 2010       |
|     John A. Wickens                              |   |                                                               |   |                       |
|                                                                 |   |                                                               |   |                       |
| /s/ William D. Novelli                                               |   | Director                                                           |   | March 16, 2010             |
|     William D. Novelli                           |   |                                                               |   |                       |
|                                                                 |   |                                                               |   |                       |
| /s/ William C. O’Neil, Jr.                                     |   | Director                                                           |   |  March 16, 2010       |
|     William C. O'Neil, Jr.                       |   |                                                               |   |                       |
|                                                                 |   |                                                               |   |                       |
| /s/ John W. Ballantine                                               |   | Director                                                           |   |  March 16, 2010       |
|    John W. Ballantine                                 |   |                                                               |   |                       |
|                                                                 |   |                                                               |   |                       |
| /s/ Mary Jane England, M.D.                                          |   | Director                                                           |   |  March 16, 2010       |
|    Mary Jane England, M.D.                            |   |                                                               |   |                       |
|                                                                 |   |                                                               |   |                       |
| /s/ Alison Taunton-Rigby                                             |   | Director                                                           |   |  March 16, 2010       |
|    Alison Taunton-Rigby                               |   |                                                               |   |                       |
|                                                                 |   |                                                               |   |                       |
| /s/ J. Cris Bisgard, M.D.                                            |   | Director                                                           |   |  March 16, 2010       |
|     J. Cris Bisgard, M.D.                        |   |                                                               |   |                       |
|                                                                 |   |                                                               |   |                       |
| /s/ C. Warren Neel                                                   |   | Director                                                           |   |  March 16, 2010       |
|    C. Warren Neel                                     |   |                                                               |   |                       |
|                                                                 |   |                                                               |   |                       |
| /s/ L. Ben Lytle                                                     |   | Director                                                           |   |  March 16, 2010       |
|    L. Ben Lytle                                       |   |                                                               |   |                       |
|                                                                 |   |                                                               |   |                       |

----