----

| 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) |

|                                                                               |
|------------------------------------------------------------------------------------|
| (Former name, former address and former fiscal year, if changed since last report) |

----

| Non-accelerated filer   o | (Do not check if a smaller reporting company) | Smaller reporting company o |
|--------------------------------|-----------------------------------------------|-----------------------------|

----

|         |     |                                                                                 | Page     |
|--------------|----------|--------------------------------------------------------------------------------------|----------|
| Part I       |     |                                                                                 |     |
|         | Item 1.  | Financial Statements                                                                 | 4        |
|    | Item 2.  | Management's Discussion and Analysis of Financial Condition andResults of Operations |  22 |
|         | Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                           | 38       |
|         | Item 4.  | Controls and Procedures                                                              | 38       |
| Part II      |     |                                                                                 |     |
|         | Item 1.  | Legal Proceedings                                                                    | 39       |
|         | Item 1A. | Risk Factors                                                                         | 39       |
|         | Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                          | 40       |
|         | Item 3.  | Defaults Upon Senior Securities                                                      | 40       |
|         | Item 4.  | Mine Safety Disclosures                                                              | 41       |
|         | Item 5.  | Other Information                                                                    | 41       |
|         | Item 6.  | Exhibits                                                                             | 41       |

----

| Item 1. | Financial Statements |
|---------|----------------------|

|                                                             |   | September 30, |     |   | December 31, |   |
|------------------------------------------------------------------|--------|---------------|----------|--------|--------------|--------|
|                                                             |   | 2013          |     |   | 2012         |   |
| Current assets:                                                  |   |               |     |   |              |   |
| Cash and cash equivalents                                        |   | $             | 2,815    |   |         | $      | 1,759 |   |
| Accounts receivable, net                                         |   |          | 85,731   |   |         |   | 108,337 |   |
| Prepaid expenses                                                 |   |          | 13,283   |   |         |   | 9,727 |   |
| Other current assets                                             |   |          | 6,648    |   |         |   | 7,227 |   |
| Income taxes receivable                                          |   |          | 5,653    |   |         |   | 5,920 |   |
| Deferred tax asset                                               |   |          | 8,169    |   |         |   | 8,839 |   |
| Total current assets                                             |   |          | 122,299  |   |         |   | 141,809 |   |
|                                                             |   |          |     |   |         |   |   |   |
| Property and equipment:                                          |   |          |     |   |         |   |   |   |
| Leasehold improvements                                           |   |          | 38,406   |   |         |   | 40,679 |   |
| Computer equipment and related software                          |   |          | 283,707  |   |         |   | 267,902 |   |
| Furniture and office equipment                                   |   |          | 23,591   |   |         |   | 23,552 |   |
| Capital projects in process                                      |   |          | 23,612   |   |         |   | 11,799 |   |
|                                                             |   |          | 369,316  |   |         |   | 343,932 |   |
| Less accumulated depreciation                                    |   |          | (211,355 | )      |         |   | (187,438 | ) |
|                                                             |   |          | 157,961  |   |         |   | 156,494 |   |
|                                                             |   |          |     |   |         |   |   |   |
| Other assets                                                     |   |          | 69,546   |   |         |   | 21,042 |   |
| Intangible assets, net                                           |   |          | 81,809   |   |         |   | 90,228 |   |
| Goodwill, net                                                    |   |          | 339,132  |   |         |   | 338,695 |   |
|                                                             |   |          |     |   |         |   |   |   |
| Total assets                                                     |   | $             | 770,747  |   |         | $      | 748,268 |   |
|                                                             |   |          |     |   |         |   |   |   |
| See accompanying notes to the consolidated financial statements. |   |

----

|                                                                                                                   |   | September 30, |    |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|--------------|--------|
|                                                                                                                   |   | 2013          |    |   | 2012         |   |
| Current liabilities:                                                                                                   |   |               |    |   |              |   |
| Accounts payable                                                                                                       |   | $             | 20,547  |   |         | $      | 26,343 |   |
| Accrued salaries and benefits                                                                                          |   |          | 15,848  |   |         |   | 24,909 |   |
| Accrued liabilities                                                                                                    |   |          | 36,095  |   |         |   | 39,234 |   |
| Deferred revenue                                                                                                       |   |          | 5,197   |   |         |   | 5,643 |   |
| Contract billings in excess of earned revenue                                                                          |   |          | 19,263  |   |         |   | 14,793 |   |
| Current portion of long-term debt                                                                                      |   |          | 13,737  |   |         |   | 11,801 |   |
| Current portion of long-term liabilities                                                                               |   |          | 3,181   |   |         |   | 5,535 |   |
| Total current liabilities                                                                                              |   |          | 113,868 |   |         |   | 128,258 |   |
|                                                                                                                   |   |          |    |   |         |   |   |   |
| Long-term debt                                                                                                         |   |          | 246,926 |   |         |   | 278,534 |   |
| Long-term deferred tax liability                                                                                       |   |          | 35,461  |   |         |   | 36,053 |   |
| Other long-term liabilities                                                                                            |   |          | 67,287  |   |         |   | 26,602 |   |
|                                                                                                                   |   |          |    |   |         |   |   |   |
| Stockholders' equity:                                                                                                  |   |          |    |   |         |   |   |   |
| Preferred stock $.001 par value, 5,000,000 shares authorized, none outstanding                                         |   |          | — |   |         |   | — |   |
| Common stock $.001 par value, 120,000,000 shares authorized,35,024,421 and 33,924,464 shares outstanding, respectively |   |          | 35      |   |         |   | 34 |   |
| Additional paid-in capital                                                                                             |   |          | 282,184 |   |         |   | 251,357 |   |
| Retained earnings                                                                                                      |   |          | 53,290  |   |         |   | 56,541 |   |
| Treasury stock, at cost, 2,254,953 shares in treasury                                                                  |   |          | (28,182 | )      |         |   | (28,182 | ) |
| Accumulated other comprehensive loss                                                                                   |   |          | (122    | )      |         |   | (929 | ) |
| Total stockholders' equity                                                                                             |   |          | 307,205 |   |         |   | 278,821 |   |
|                                                                                                                   |   |          |    |   |         |   |   |   |
| Total liabilities and stockholders' equity                                                                             |   | $             | 770,747 |   |         | $      | 748,268 |   |
|                                                                                                                   |   |          |    |   |         |   |   |   |

----

|                                                                                                                                |   | Three Months Ended |    |   | Nine Months Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                                                                                                |   | September 30,      |    |   | September 30,     |   |
|                                                                                                                                |   | 2013               |    |   | 2012              |   |   | 2013 |   |   | 2012 |   |
| Revenues                                                                                                                            |   | $                  | 166,615 |   |              | $      | 166,559 |   |   | $ | 494,049 |   |   | $ | 501,990 |   |
| Cost of services (exclusive of depreciation and amortization of $9,115, $9,158, $26,826, and $26,689, respectively, included below) |   |               | 131,109 |   |              |   | 126,782 |   |   |   | 405,835 |   |   |   | 396,321 |   |
| Selling, general and administrative expenses                                                                                        |   |               | 16,440  |   |              |   | 14,727 |   |   |   | 43,816 |   |   |   | 43,455 |   |
| Depreciation and amortization                                                                                                       |   |               | 12,952  |   |              |   | 13,259 |   |   |   | 39,499 |   |   |   | 38,233 |   |
|                                                                                                                                |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                                                                                    |   |               | 6,114   |   |              |   | 11,791 |   |   |   | 4,899 |   |   |   | 23,981 |   |
| Interest expense                                                                                                                    |   |               | 5,006   |   |              |   | 3,249 |   |   |   | 11,486 |   |   |   | 10,822 |   |
|                                                                                                                                |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                                                                                   |   |               | 1,108   |   |              |   | 8,542 |   |   |   | (6,587 | ) |   |   | 13,159 |   |
| Income tax expense (benefit)                                                                                                        |   |               | (691    | )      |              |   | 3,514 |   |   |   | (3,336 | ) |   |   | 5,739 |   |
|                                                                                                                                |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                                                   |   | $                  | 1,799   |   |              | $      | 5,028 |   |   | $ | (3,251 | ) |   | $ | 7,420 |   |
|                                                                                                                                |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share:                                                                                                          |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                               |   | $                  | 0.05    |   |              | $      | 0.15 |   |   | $ | (0.09 | ) |   | $ | 0.22 |   |
|                                                                                                                                |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Diluted (1)                                                                                                                         |   | $                  | 0.05    |   |              | $      | 0.15 |   |   | $ | (0.09 | ) |   | $ | 0.22 |   |
|                                                                                                                                |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                         |   | $                  | 2,444   |   |              | $      | 4,909 |   |   | $ | (2,444 | ) |   | $ | 7,688 |   |
|                                                                                                                                |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares and equivalents:                                                                                     |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                               |   |               | 34,682  |   |              |   | 33,683 |   |   |   | 34,288 |   |   |   | 33,485 |   |
| Diluted (1)                                                                                                                         |   |               | 35,834  |   |              |   | 34,068 |   |   |   | 34,288 |   |   |   | 33,706 |   |

| (1)  The assumed exercise of stock-based compensation awards for the nine months ended September 30, 2013 was not considered because the impact would be anti-dilutive. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                   |
| See accompanying notes to the consolidated financial statements.                                                                                                                       |

----

|                                                   |   | PreferredStock |    |   | CommonStock |   |    | AdditionalPaid-inCapital |   |   | RetainedEarnings |   |   | Treasury Stock |    |   | Accumulated Other Comprehensive Loss |   |   Total |
|--------------------------------------------------------|--------|----------------|---------|--------|-------------|--------|---------|--------------------------|--------|--------|------------------|--------|--------|----------------|---------|--------|--------------------------------------|--------|-------------------|
| Balance, December 31, 2012                             |   | $              | — |   |        | $      | 34      |                     |   | $      | 251,357          |   |   | $              | 56,541  |   |                                 | $      | (28,182           | ) |   | $ | (929 | ) |   | $ | 278,821 |   |
|                                                   |   |           |    |   |        |   |    |                     |   |   |             |   |   |           |    |   |                                 |   |              |   |   |   |   |   |   |   |   |   |  |
| Comprehensive income (loss)                            |   |           | — |   |        |   | — |                     |   |   | —          |   |   |           | (3,251  | )      |                                 |   | —           |   |   |   | 807 |   |   |   | (2,444 | ) |
|                                                   |   |           |    |   |        |   |    |                     |   |   |             |   |   |           |    |   |                                 |   |              |   |   |   |   |   |   |   |   |   |  |
| Exercise of stock options                              |   |           | — |   |        |   | 1       |                     |   |   | 12,561           |   |   |           | — |   |                                 |   | —           |   |   |   | — |   |   |   | 12,562 |   |
|                                                   |   |           |    |   |        |   |    |                     |   |   |             |   |   |           |    |   |                                 |   |              |   |   |   |   |   |   |   |   |   |  |
| Tax effect of stock options and restricted stock units |   |           | — |   |        |   | — |                     |   |   | (1,908           | )      |   |           | — |   |                                 |   | —           |   |   |   | — |   |   |   | (1,908 | ) |
|                                                   |   |           |    |   |        |   |    |                     |   |   |             |   |   |           |    |   |                                 |   |              |   |   |   |   |   |   |   |   |   |  |
| Share-based employee compensation expense              |   |           | — |   |        |   | — |                     |   |   | 5,207            |   |   |           | — |   |                                 |   | —           |   |   |   | — |   |   |   | 5,207 |   |
|                                                   |   |           |    |   |        |   |    |                     |   |   |             |   |   |           |    |   |                                 |   |              |   |   |   |   |   |   |   |   |   |  |
| Issuance of warrants                                   |   |           | — |   |        |   | — |                     |   |   | 15,150           |   |   |           | — |   |                                 |   | —           |   |   |   | — |   |   |   | 15,150 |   |
|                                                   |   |           |    |   |        |   |    |                     |   |   |             |   |   |           |    |   |                                 |   |              |   |   |   |   |   |   |   |   |   |  |
| Other                                                  |   |           | — |   |        |   | — |                     |   |   | (183             | )      |   |           | — |   |                                 |   | —           |   |   |   | — |   |   |   | (183 | ) |
|                                                   |   |           |    |   |        |   |    |                     |   |   |             |   |   |           |    |   |                                 |   |              |   |   |   |   |   |   |   |   |   |  |
| Balance, September 30, 2013                            |   | $              | — |   |        | $      | 35      |                     |   | $      | 282,184          |   |   | $              | 53,290  |   |                                 | $      | (28,182           | ) |   | $ | (122 | ) |   | $ | 307,205 |   |
|                                                   |   |           |    |   |        |   |    |                     |   |   |             |   |   |           |    |   |                                 |   |              |   |   |   |   |   |   |   |   |   |  |

----

|                                                                                                                         |   | Nine Months Ended |     |
|------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|----------|
|                                                                                                                         |   | September 30,     |     |
|                                                                                                                         |   | 2013              |     |   | 2012 |   |
| Cash flows from operating activities:                                                                                        |   |                   |     |   |  |   |
| Net income (loss)                                                                                                            |   | $                 | (3,251   | ) |   | $ | 7,420 |   |
| Adjustments to reconcile net income (loss) to net cash flows provided by operating activities, net of business acquisitions: |   |              |     |   |   |   |   |   |
| Depreciation and amortization                                                                                                |   |              | 39,499   |   |   |   | 38,233 |   |
| Amortization and write-off of deferred loan costs                                                                            |   |              | 1,096    |   |   |   | 2,077 |   |
| Amortization of debt discount                                                                                                |   |              | 1,497    |   |   |   | — |   |
| Share-based employee compensation expense                                                                                    |   |              | 5,207    |   |   |   | 4,652 |   |
| Deferred income taxes                                                                                                        |   |              | 45       |   |   |   | (1,517 | ) |
| Excess tax benefits from share-based payment arrangements                                                                    |   |              | (572     | ) |   |   | (477 | ) |
| Decrease (increase) in accounts receivable, net                                                                              |   |              | 23,185   |   |   |   | (17,081 | ) |
| Decrease in other current assets                                                                                             |   |              | 138      |   |   |   | 779 |   |
| Decrease in accounts payable                                                                                                 |   |              | (4,363   | ) |   |   | (6,029 | ) |
| Decrease in accrued salaries and benefits                                                                                    |   |              | (9,777   | ) |   |   | (14,454 | ) |
| (Decrease) increase in other current liabilities                                                                             |   |              | (398     | ) |   |   | 12,912 |   |
| Other                                                                                                                        |   |              | (941     | ) |   |   | (3,124 | ) |
| Net cash flows provided by operating activities                                                                              |   |              | 51,365   |   |   |   | 23,391 |   |
|                                                                                                                         |   |              |     |   |   |   |   |   |
| Cash flows from investing activities:                                                                                        |   |              |     |   |   |   |   |   |
| Acquisition of property and equipment                                                                                        |   |              | (32,833  | ) |   |   | (40,735 | ) |
| Business acquisitions, net of cash acquired                                                                                  |   |              | (830     | ) |   |   | (4,693 | ) |
| Other                                                                                                                        |   |              | (5,754   | ) |   |   | (6,075 | ) |
| Net cash flows used in investing activities                                                                                  |   |              | (39,417  | ) |   |   | (51,503 | ) |
|                                                                                                                         |   |              |     |   |   |   |   |   |
| Cash flows from financing activities:                                                                                        |   |              |     |   |   |   |   |   |
| Proceeds from issuance of long-term debt                                                                                     |   |              | 314,800  |   |   |   | 653,874 |   |
| Payments of long-term debt                                                                                                   |   |              | (461,380 | ) |   |   | (631,315 | ) |
| Deferred loan costs                                                                                                          |   |              | (5,210   | ) |   |   | (2,547 | ) |
| Excess tax benefits from share-based payment arrangements                                                                    |   |              | 572      |   |   |   | 477 |   |
| Exercise of stock options                                                                                                    |   |              | 12,562   |   |   |   | 2,835 |   |
| Proceeds from cash convertible senior notes                                                                                  |   |              | 150,000  |   |   |   | — |   |
| Proceeds from sale of warrants                                                                                               |   |              | 15,150   |   |   |   | — |   |
| Payments for convertible note hedge transactions                                                                             |   |              | (36,750  | ) |   |   | — |   |
| Change in outstanding checks and other                                                                                       |   |              | 104      |   |   |   | 6,471 |   |
| Net cash flows (used in) provided by financing activities                                                                    |   |              | (10,152  | ) |   |   | 29,795 |   |
|                                                                                                                         |   |              |     |   |   |   |   |   |
| Effect of exchange rate changes on cash                                                                                      |   |              | (740     | ) |   |   | 24 |   |
|                                                                                                                         |   |              |     |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                                                    |   |              | 1,056    |   |   |   | 1,707 |   |
|                                                                                                                         |   |              |     |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                                                               |   |              | 1,759    |   |   |   | 864 |   |
|                                                                                                                         |   |              |     |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                                                     |   | $                 | 2,815    |   |   | $ | 2,571 |   |

----

----

|                              |   |        |   |           |           | Weighted-   |         |
|-----------------------------------|--------|--------|--------|-----------|----------------|-------------|--------------|
|                              |   |        |   |           |           | Average     |         |
|                              |   |        |   | Weighted- |           | Remaining   | Aggregate    |
|                              |   | Shares |   | Average   |           | Contractual | Intrinsic    |
| Options                           |   |   | (000s) |      | Exercise Price |        | Term (years) | Value ($000s) |
| Outstanding at January 1, 2013    |   |   | 4,689  |      |           | $           | 15.65        |   |   |    |
| Granted                           |   |   | 1,011  |      |           |        | 12.95        |   |   |    |
| Exercised                         |   |   | (1,062 | )         |           |        | 14.27        |   |   |    |
| Forfeited                         |   |   | (128   | )         |           |        | 10.94        |   |   |    |
| Expired                           |   |   | (62    | )         |           |        | 20.44        |   |   |    |
| Outstanding at September 30, 2013 |   |   | 4,448  |      |           |        | 15.43        |   | 6.44 | $24,602 |
| Exercisable at September 30, 2013 |   |   | 2,081  |      |           | $           | 20.26        |   | 4.06 | $7,278 |

|                            |   |        |   | Weighted-  |       |
|---------------------------------|--------|--------|--------|------------|------------|
|                            |   |        |   | Average    |       |
|                            |   | Shares |   | Grant Date |       |
| Nonvested Shares                |   |   | (000s) |       | Fair Value |   |
| Nonvested at January 1, 2013    |   |   | 1,013  |       |       | $ | 9.93 |   |
| Granted                         |   |   | 183    |       |       |   | 13.05 |   |
| Vested                          |   |   | (225   | )          |       |   | 10.50 |   |
| Forfeited                       |   |   | (55    | )          |       |   | 10.11 |   |
| Nonvested at September 30, 2013 |   |   | 916    |       |       | $ | 10.40 |   |

----

----

----

----

| (In $000s)                                                                                                                  |   | For the Three Months Ended |   |   | For the Nine Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|--------|---------------------------|--------|
| Derivatives in Cash Flow Hedging Relationships                                                                              |   | September 30, 2013         |   |   | September 30, 2012        |   |   | September 30, 2013 |   |   | September 30, 2012 |   |
| (Gain) loss related to effective portion of derivatives recognized in accumulated OCI, gross of tax effect                  |   | $                          | 72     |   |                      | $      | 1,223 |   |   | $ | (624 | ) |   | $ | 2,001 |   |
| Loss related to effective portion of derivatives reclassified from accumulated OCI to interest expense, gross of tax effect |   | $                          | 452    |   |                      | $      | 790 |   |   | $ | 1,632 |   |   | $ | 2,579 |   |

|                                        |   | Three Months Ended |   | Nine Months Ended |   |  Statements of Comprehensive Income |
|---------------------------------------------|--------|--------------------|--------|-------------------|--------|------------------------------------------|
|                                        |   | September 30, 2013 |   | September 30,2013 |   | (Loss) Classification                    |
| Cash Convertible Notes Hedges:              |   |                    |   |              |   |                                          |   |   |        |
|     Net unrealized gain |   | $                  | 7,341  |              |   |                                     | $ | 7,341 |   |  Selling, general and administrative expenses |
| Cash Conversion Derivative:                 |   |               |   |              |   |                                     |   |   |   |   |         |
|     Net unrealized loss |   | $                  | (7,341 | )                 |   |                                     | $ | (7,341 | ) | Selling, general and administrative expenses |

----

|                                               |   | September 30, 2013                  |    |   | December 31, 2012             |   |
|----------------------------------------------------|--------|-------------------------------------|---------|--------|-------------------------------|--------|
| (In $000s)                                         |   | Foreign currency exchange contracts |    |   | Interest rate swap agreements |   |   | Cash Convertible Notes Hedges and Cash Conversion Derivative |   |   | Foreign currency exchange contracts |   |   | Interest rate swap agreements |   |
| Assets:                                            |   |                                     |    |   |                               |   |   |  |   |   |  |   |   |  |   |
| Derivatives not designated as hedging instruments: |   |                                     |    |   |                               |   |   |  |   |   |  |   |   |  |   |
| Other current assets                               |   | $                                   | 158     |   |                          | $      | — |   |   | $ | — |   |   | $ | 73 |   |   | $ | — |   |
| Other assets                                       |   |                                | — |   |                          |   | — |   |   |   | 44,091 |   |   |   | — |   |   |   | — |   |
| Total assets                                       |   | $                                   | 158     |   |                          | $      | — |   |   | $ | 44,091 |   |   | $ | 73 |   |   | $ | — |   |
|                                               |   |                                |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                       |   |                                |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments: |   |                                |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accrued liabilities                                |   | $                                   | 115     |   |                          | $      | — |   |   | $ | — |   |   | $ | 255 |   |   | $ | — |   |
| Other long-term liabilities                        |   |                                | — |   |                          |   | — |   |   |   | 44,091 |   |   |   | — |   |   |   | — |   |
|                                               |   |                                |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives designated as hedging instruments:     |   |                                |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accrued liabilities                                |   |                                | — |   |                          |   | 208 |   |   |   | — |   |   |   | — |   |   |   | 1,742 |   |
| Other long-term liabilities                        |   |                                | — |   |                          |   | 499 |   |   |   | — |   |   |   | — |   |   |   | 1,221 |   |
| Total liabilities                                  |   | $                                   | 115     |   |                          | $      | 707 |   |   | $ | 44,091 |   |   | $ | 255 |   |   | $ | 2,963 |   |

----

| September 30, 2013                  |   | Level 2 |    |   | Level 3 |   |    | Gross Fair Value |   |   | Netting (1) |   |   | Net Fair Value |    |
|-------------------------------------|--------|---------|---------|--------|---------|--------|---------|------------------|--------|--------|-------------|--------|--------|----------------|---------|
| Assets:                             |   |         |    |   |         |   |    |                  |   |   |             |   |   |                |    |
| Foreign currency exchange contracts |   | $       | 158     |   |    | $      | — |             |   | $      | 158         |   |   | $              | (78     | ) |   | $ | 80 |   |
| Cash Convertible Notes Hedges       |   |    | — |   |    |   | 44,091  |             |   |   | 44,091      |   |   |           | — |   |   |   | 44,091 |   |
| Liabilities:                        |   |    |    |   |    |   |    |             |   |   |        |   |   |           |    |   |   |   |   |   |
| Foreign currency exchange contracts |   | $       | 115     |   |    | $      | — |             |   | $      | 115         |   |   | $              | (78     | ) |   | $ | 37 |   |
| Interest rate swap agreements       |   |    | 707     |   |    |   | — |             |   |   | 707         |   |   |           | — |   |   |   | 707 |   |
| Cash Conversion Derivative          |   |    | — |   |    |   | 44,091  |             |   |   | 44,091      |   |   |           | — |   |   |   | 44,091 |   |

| December 31, 2012                   |   | Level 2 |   |   | Gross Fair Value |   |   | Netting (1) |   |   | Net Fair Value |   |
|-------------------------------------|--------|---------|--------|--------|------------------|--------|--------|-------------|--------|--------|----------------|--------|
| Assets:                             |   |         |   |   |                  |   |   |             |   |   |                |   |
| Foreign currency exchange contracts |   | $       | 73     |   |             | $      | 73     |        |   | $      | (73            | )      |   | $ | — |   |
| Liabilities:                        |   |    |   |   |             |   |   |        |   |   |           |   |   |   |   |   |
| Foreign currency exchange contracts |   | $       | 255    |   |             | $      | 255    |        |   | $      | (73            | )      |   | $ | 182 |   |
| Interest rate swap agreements       |   |    | 2,963  |   |             |   | 2,963  |        |   |   | —        |   |   |   | 2,963 |   |

----

|                               |   | Balance at December 31, 2012 |    |   | Purchases of Level 3Instruments |   |    | Issuances of Level 3 Instruments |   |   | Gains/ (Losses) included in Earnings |   |   | Balance at September 30, 2013 |   |
|-------------------------------|--------|------------------------------|---------|--------|---------------------------------|--------|---------|----------------------------------|--------|--------|--------------------------------------|--------|--------|-------------------------------|--------|
| Cash Convertible Notes Hedges |   | $                            | — |   |                            | $      | 36,750  |                             |   | $      | —                              |   |   | $                             | 7,341  |   |   | $ | 44,091 |   |
| Cash Conversion Derivative    |   |                         | — |   |                            |   | — |                             |   |   | (36,750                              | )      |   |                          | (7,341 | ) |   |   | (44,091 | ) |

| • | Cash and cash equivalents – The carrying amount of $2.8 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 Fifth Amended Credit Agreement, which includes a revolving credit facility and a term loan facility (see Note 5), and the Cash Convertible Notes are determined based on the fair value hierarchy as discussed above.  The revolving credit facility and the term loan facility are not actively traded and therefore are classified as Level 2 valuations based on the market for similar instruments.  The estimated fair value 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 Fifth Amended Credit Agreement at September 30, 2013 are $142.9 million and $143.3 million, respectively. The Cash Convertible Notes are actively traded and therefore are classified as Level 1 valuations. The estimated fair value at September 30, 2013 was $167.6 million, which is based on the last quoted price of the Cash Convertible Notes on September 30, 2013, and the par value was $150.0 million. The carrying amount of the Cash Convertible Notes at September 30, 2013 was $114.7 million, which is net of the debt discount discussed in Note 5. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (In 000s, except per share data)                                                                                        |   | Three Months Ended |    |   | Nine Months Ended |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                                                                                    |   | September 30,      |    |   | September 30,     |   |   | September 30, |   |   | September 30, |   |
|                                                                                                                    |   | 2013               |    |   | 2012              |   |   | 2013 |   |   | 2012 |   |
| Numerator:                                                                                                              |   |                    |    |   |                   |   |   |  |   |   |  |   |
| Net income (loss) - numerator for basic loss per share                                                                  |   | $                  | 1,799   |   |              | $      | 5,028 |   |   | $ | (3,251 | ) |   | $ | 7,420 |   |
|                                                                                                                    |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                            |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Shares used for basic earnings (loss) per share                                                                         |   |               | 34,682  |   |              |   | 33,683 |   |   |   | 34,288 |   |   |   | 33,485 |   |
| Effect of dilutive securities outstanding:                                                                              |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Non-qualified stock options  (1)                                                                                   |   |               | 784,000 |   |              |   | 127 |   |   |   | — |   |   |   | 50 |   |
| Restricted stock units  (1)                                                                                        |   |               | 368,000 |   |              |   | 258 |   |   |   | — |   |   |   | 171 |   |
| Shares used for diluted earnings (loss) per share  (1)                                                             |   | $                  | 35,834  |   |              | $      | 34,068 |   |   | $ | 34,288 |   |   | $ | 33,706 |   |
|                                                                                                                    |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share:                                                                                              |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                   |   | $                  | 0.05    |   |              | $      | 0.15 |   |   | $ | (0.09 | ) |   | $ | 0.22 |   |
| Diluted (1)                                                                                                        |   | $                  | 0.05    |   |              | $      | 0.15 |   |   | $ | (0.09 | ) |   | $ | 0.22 |   |
|                                                                                                                    |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive securities outstanding not included in the computation of loss per share because their effect is antidilutive: |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Non-qualified stock options                                                                                             |   |               | 1,682   |   |              |   | 4,339 |   |   |   | 3,343 |   |   |   | 5,146 |   |
| Restricted stock units                                                                                                  |   |               | — |   |              |   | 124 |   |   |   | 331 |   |   |   | 236 |   |

----

|                                                                     |   | Net Change in Fair Value of Interest Rate Swaps |   |   | Foreign Currency Translation Adjustments |   |    | Total  |   |
|--------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|------------------------------------------|--------|---------|--------|--------|
| Accumulated OCI, net of tax, as of January 1, 2013                       |   | $                                               | (1,790 | )      |                                     | $      | 861     |   |   | $ | (929 | ) |
| Other comprehensive income (loss) before reclassifications, net of tax   |   |                                            | 377    |   |                                     |   | (557    | )      |   |   | (180 | ) |
| Amounts reclassified from accumulated OCI, net of tax                    |   |                                            | 987    |   |                                     |   | — |   |   |   | 987 |   |
| Net increase (decrease) in other comprehensive income (loss), net of tax |   |                                            | 1,364  |   |                                     |   | (557    | )      |   |   | 807 |   |
| Accumulated OCI, net of tax, as of September 30, 2013                    |   | $                                               | (426   | )      |                                     | $      | 304     |   |   | $ | (122 | ) |

|                                                                               |   | Net Change in Fair Value of Interest Rate Swaps |   |   | Foreign Currency Translation Adjustments |   |    | Total  |   |
|------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|------------------------------------------|--------|---------|--------|--------|
| Accumulated OCI, net of tax, as of January 1, 2012                                 |   | $                                               | (2,570 | )      |                                     | $      | 781     |   |   | $ | (1,789 | ) |
| Other comprehensive loss before reclassifications, net of tax                      |   |                                            | (1,246 | )      |                                     |   | (92     | )      |   |   | (1,338 | ) |
| Amounts reclassified from accumulated OCI, net of tax                              |   |                                            | 1,606  |   |                                     |   | — |   |   |   | 1,606 |   |
| Net increase (decrease) in other comprehensive income (loss), net of tax |   |                                            | 360    |   |                                     |   | (92     | )      |   |   | 268 |   |
| Accumulated OCI, net of tax, as of September 30, 2012                              |   | $                                               | (2,210 | )      |                                     | $      | 689     |   |   | $ | (1,521 | ) |
|                                                                               |   |                                            |   |   |                                     |   |    |   |   |   |   |   |

|                |   | Nine Months Ended September 30, |   | Statement of Comprehensive Income |    |
|---------------------|--------|---------------------------------|--------|-----------------------------------|--------------|
|                |   | 2013                            |   |                              | 2012         |   |   |   | (Loss) Classification |   |
| Interest rate swaps |   | $                               | 1,632  |                              |         | $ | 2,579 |   |   |   | Interest expense |   |
|                |   |                            | (645   | )                                 |         |   | (973 | ) |   |   | Income tax benefit |   |
|                |   | $                               | 987    |                              |         |  $ | 1,606 |   |   |   | Net of tax |

----

----

| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------|

| • | fostering wellness and disease prevention through total population screening, well-being assessments, development of personal well-being plans, and engagement with self-directed tools including nutrition, exercise, health challenges and tracking available through web and mobile devices; and |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | engaging people in health improvement programs, such as fitness, stress management, weight management, depression prevention, chiropractic, and complementary and alternative medicine. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | promoting personal change and improvement in the 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. |
|---------|--------------------------------------------------------------------------------------------------------|

----

| • | the effectiveness of management's strategies and decisions; |
|---------|-------------------------------------------------------------|

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

| • | our ability to accurately forecast the costs required to successfully implement new contracts; |
|---------|-----------------------------------------------------------------------------------------------------|

| • | our ability to renew and/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 effectively compete against other entities, whose financial, research, staff, and marketing resources may exceed our resources; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

| • | our ability to accurately forecast our revenues, margins, earnings and net income, as well as any potential charges that we may incur as a result of changes in our business; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | 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; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | the impact of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 ("PPACA"), on our operations and/or the demand for our services; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | our ability to anticipate change and respond to emerging trends in the domestic and international markets for healthcare and the impact of the same on demand for our services; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| • | our ability to achieve and reach mutual agreement with customers with respect to the contractually required performance metrics, cost savings and clinical outcomes improvements, or to achieve such metrics, savings and improvements within the timeframes 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 and to accurately forecast their level of enrollment and participation 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 (including the Cash Convertible Notes), make principal and interest payments as those payments become due, and remain in compliance with our debt covenants; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | 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, or restrict our ability to obtain additional financing; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | counterparty risk associated with the Cash Convertible Notes Hedges, interest rate swap agreements, and foreign currency exchange contracts; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

| • | the risks associated with valuation of the Cash Convertible Notes Hedges and the Cash Conversion Derivative, which may result in volatility to our consolidated statements of comprehensive income (loss) if these transactions do not completely offset; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | our ability to integrate new or acquired businesses, services (including outsourced services), or technologies into our business and to accurately forecast the related costs; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | our ability to anticipate and respond to strategic changes, opportunities, and emerging trends in our industry and/or business and to accurately forecast the related impact on our revenues and earnings; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

| • | unusual and unforeseen patterns of healthcare utilization by individuals with diseases or conditions for which we provide services; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------|

| • | our ability to implement our integrated data and technology solutions platform within the required timeframe and expected cost estimates and to develop and enhance this platform and/or other technologies to meet evolving customer and market needs; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | 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; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| • | the risks associated with data privacy or security breaches, computer hacking, network penetration and other illegal intrusions; |
|---------|----------------------------------------------------------------------------------------------------------------------------------|

| • | the impact of PPACA 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 and any legislative or regulatory changes with respect to Medicare Advantage; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | the impact of future state, federal, and international legislation and regulations applicable to our business, including PPACA, 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; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| • | the impact of legal proceedings involving us and/or our subsidiaries; and |
|---------|---------------------------------------------------------------------------|

| • | other risks detailed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, this report and other filings with the Securities and Exchange Commission. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | adopt or maintain healthy behaviors; |
|---------|--------------------------------------|

| • | reduce health-related risk factors; and |
|---------|-----------------------------------------|

| • | optimize care for identified health conditions. |
|---------|-------------------------------------------------|

----

----

----

----

----

----

|                                         |   | Three Months EndedSeptember 30, |   |   | Nine Months EndedSeptember 30, |   |
|----------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                         |   | 2013                            |   |   | 2012                           |   |   | 2013 |   |   | 2012 |   |
| Revenues                                     |   |                            | 100.0  | %      |                           |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Cost of services (exclusive of depreciation  |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| and amortization included below)             |   |                            | 78.7   | %      |                           |   | 76.1 | % |   |   | 82.1 | % |   |   | 78.9 | % |
| Selling, general and administrative expenses |   |                            | 9.9    | %      |                           |   | 8.8 | % |   |   | 8.9 | % |   |   | 8.7 | % |
| Depreciation and amortization                |   |                            | 7.8    | %      |                           |   | 8.0 | % |   |   | 8.0 | % |   |   | 7.6 | % |
| Operating income (1)                         |   |                            | 3.7    | %      |                           |   | 7.1 | % |   |   | 1.0 | % |   |   | 4.8 | % |
|                                         |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                             |   |                            | 3.0    | %      |                           |   | 2.0 | % |   |   | 2.3 | % |   |   | 2.2 | % |
|                                         |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes            |   |                            | 0.7    | %      |                           |   | 5.1 | % |   |   | (1.3 | )% |   |   | 2.6 | % |
| Income tax expense (benefit)                 |   |                            | (0.4   | )%     |                           |   | 2.1 | % |   |   | (0.7 | )% |   |   | 1.1 | % |
|                                         |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) (1)                        |   |                            | 1.1    | %      |                           |   | 3.0 | % |   |   | (0.7 | )% |   |   | 1.5 | % |

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

| • | an increase in participation in our fitness solutions, as well as in the number of members eligible to participate in such solutions; and |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

| • | a contractual amendment during the third quarter of 2013 stemming from a reconciliation of fees, member activity and outcomes that resulted in the recognition of gain share revenues. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | • | the impact of the two terminated contracts, which carried a lower than average cost of services as a percentage of revenues; |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------|

|  | • | a greater amount of performance-based revenues recognized during the three and nine months ended September 30, 2012 compared to the same periods in 2013, whereas a significant portion of the related costs were incurred and recognized in a prior period; and |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | an increase in support costs primarily related to both our Embrace platform and program enrollment partially offset by recoupment of fees related to certain supplier service level agreements. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | a decrease in days sales outstanding in accounts receivable from 57 days at September 30, 2012 to 47 days at September 30, 2013; and |
|---------|--------------------------------------------------------------------------------------------------------------------------------------|

| • | severance payments made in 2012 as a result of a restructuring of the Company that was completed during the fourth quarter of 2011. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                         | Payments Due By Year Ended December 31, |   |
|----------------------------------------------|-----------------------------------------|--------|
| (In thousands)                               | 2013                                    |   |   |   | 2014-2015 |   |   |   | 2016-2017 |   | 2018 and After |   | Total |   |
| Long-term debt and related interest (1) |                                    | $      | 4,685 |   |   | $ | 44,975 |   |   | $ | 121,846 |   |   | $ | 151,162 |   |   | $ | 322,668 |   |

----

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
|---------|------------------------------------------------------------|

| Item 4. | Controls and Procedures |
|---------|-------------------------|

----

| Item 1. | Legal Proceedings |
|---------|-------------------|

|  | Item 1A. | Risk Factors |
|--|----------|--------------|

----

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
|---------|-------------------------------------------------------------|

----

| Item 4. | Mine Safety Disclosures |
|---------|-------------------------|

| Item 5. | Other Information |
|---------|-------------------|

| Item 6. | Exhibits |
|---------|----------|

| (a) | Exhibits |
|-----|----------|

| 3.1    |   | Restated Certificate of Incorporation, as amended [incorporated by reference to Exhibit 3.1 to Form 10-Q of the Company's fiscal quarter ended February 29, 2008, File No. 000-19364]                                                            |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                             |
| 3.2    |   | Certificate of Amendment to Restated Certificate of Incorporation, as amended, dated as of October 10, 2013                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                             |
| 10.1   |   | Investment Agreement, dated October 1, 2013, between the Company and CareFirst Holdings, LLC [incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated October 2, 2013, File No. 000-19364]+                  |
|   |   |                                                                                                                                                                                                                                             |
| 10.2   |   | Convertible Senior Subordinated Note, dated October 1, 2013, issued by the Company and CareFirst Holdings, LLC [incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K dated October 2, 2013, File No. 000-19364] |
|   |   |                                                                                                                                                                                                                                             |
| 10.3   |   | Form of Common Stock Purchase Warrant [incorporated by reference to Exhibit 10.3 of the Company's Current Report on Form 8-K dated October 2, 2013, File No. 000-19364]                                                                          |
|   |   |                                                                                                                                                                                                                                             |
| 10.4   |   | Registration Rights Agreement, dated October 1, 2013, between the Company and CareFirst Holdings, LLC incorporated by reference to Exhibit 10.4 of the Company's Current Report on Form 8-K dated October 2, 2013, File No. 000-19364]           |

| 31.1           |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended                            |
|----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                 |
| 31.2           |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended                            |
|           |        |                                                                                                                                                                      |
| 32             |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|           |        |                                                                                                                                                                      |
|  101.INS  |        | XBRL Instance Document                                                                                                                                               |
|           |        |                                                                                                                                                                      |
|  101.SCH  |        | XBRL Taxonomy Extension Schema                                                                                                                                       |
|           |        |                                                                                                                                                                      |
|  101.CAL  |        | XBRL Taxonomy Extension Calculation Linkbase                                                                                                                         |
|           |        |                                                                                                                                                                      |
|  101.DEF  |        | XBRL Taxonomy Extension Definition Linkbase                                                                                                                          |
|           |        |                                                                                                                                                                      |
|   101.LAB |        | XBRL Taxonomy Extension Label Linkbase                                                                                                                               |
|           |        |                                                                                                                                                                      |
| 101.PRE        |        | XBRL Taxonomy Extension Presentation Linkbase                                                                                                                        |

----

|   |             |   |   | Healthways, Inc.              |
|--------|------------------|--------|--------|-------------------------------|
|   |             |   |   | (Registrant)                  |
|   |             |   |   |                          |
|   |             |   |   |                          |
|   |             |   |   |                          |
|   |             |   |   |                          |
| Date   | November 5, 2013 |   | By     | /s/ Alfred Lumsdaine          |
|   |             |   |   | Alfred Lumsdaine              |
|   |             |   |   | Chief Financial Officer       |
|   |             |   |   | (Principal Financial Officer) |

----