Baptist Health Care Taps NextGen - Analyst Blog

Quality Systems' (QSII) wholly-owned subsidiary NextGen Healthcare has inked a pact with Baptist Health Care, a non-profit healthcare organization serving communities in Florida and Alabama.

Under the collaboration, Baptist Health Care will recommend NextGen products such as the NextGen Ambulatory EHR and NextGen Practice Management to all affiliated physician practices. NextGen's solutions will allow physicians to exchange clinical data between physician offices, hospitals and patients with a broader goal of improving patient care. 

NextGen's integrated Ambulatory Practice Management and EHR products enable coordination of patient care with formalized clinical and administrative workflows in any health care facility. Moreover, the company's inpatient products such as NextGen Financials and NextGen Clinicals have extended their services to community and rural hospitals.

NextGen was chosen as the preferred vendor for EHR by Ohio Health Information Partnership (“OHIP”) and the Massachusetts e-Health Institute (“MeHI”), the designated regional extension centers (RECs) in Ohio and Massachusetts, respectively. Also, NextGen was selected by the designated RECs in New York State and New York City. NextGen continues to work closely with other RECs across the U.S.to identify 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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