Quality Systems’ (QSII) wholly-owned subsidiary NextGen Healthcare has collaborated with California Health Information Partnership and Services Organizations (“CalHIPSO”), a nonprofit organization that offers programs and services to help medical providers adopt electronic health record (“EHR”) systems.
CalHIPSO, the regional extension center (“REC”) in California (except Los Angeles and Orange County), is responsible for the adoption and implementation of EHR systems across all primary care provider settings in the state.
The collaboration is aimed at helping primary care providers across California to leverage NextGen Ambulatory EHR to attain the “Meaningful Use” criteria and secure incentives under the American Recovery and Reinvestment Act (“ARRA”). It represents a part of NextGen’s sustained initiative to expand REC relationship.
NextGen was also recently chosen as the preferred vendor for EHR by Kansas Foundation for Medical Care, the REC in Kansas. Additionally, it was selected by other RECs in Colorado, Pennsylvania, Puerto Rico and U.S. Virgin Islands, South Florida and West Virginia. NextGen continues to work closely with other RECs across the U.S. to identify the potential users of its EHR solutions.
Quality Systems develops and markets healthcare information systems that automate certain aspects of medical and dental practices. More than 90% of its annual revenues come from the NextGen division. Quality Systems competes in a fragmented market with larger competitors such as Allscripts Healthcare Solutions (MDRX) and Cerner Corp. (CERN).
We are pleased with Quality Systems’ wide range of products, particularly those of its NextGen business, contributing to a diversified and growing revenue-base. Moreover, we expect the company to benefit from the migration of small physician practices to EHR under the federal Stimulus program.
Quality Systems’ (especially NextGen’s) pipeline remains strong. The company continues to sign on large customers, which bodes well for future growth. However,we remain apprehensive about the fierce competition. Currently, we have a Neutral rating on Quality Systems.
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