Wills Eye Taps NextGen - Analyst Blog

Quality Systems' (QSII) wholly owned subsidiary NextGen Healthcare Information Systems has inked a pact with Philadelphia-based renowned eye clinic Wills Eye Health System. As per the agreement, the latter will implement NextGen Ambulatory EHR and NextGen Practice Management solutions.  

Wills Eye provides the complete range of eye care, including retina, cornea, cataract, ocular oncology and other coverage. It also operates a chain of multi-specialty ambulatory surgery outfits in the tri-state region.       

The integrated platform provided by NextGen will connect the Wills Eye community, thereby providing its care givers with access to electronic health records (“EHR”) and facilitating exchange of patient-related information at the point of care. This high level of documentation will enable Wills Eye meet the clinical reporting capabilities required to satisfy the “Meaningful Use” criteria.

NextGen Ambulatory EHR showcases exclusive ophthalmology-related content, including pro forma templates and workflow, to ensure thorough and precise documentation stored in a uniform manner. Its disease management templates allow medical practitioners to report discrete data at the point of care, which is a critical requirement to qualify for pay-for-performance programs.

NextGen Practice Management provides reporting ability that can be utilized to track quality improvement parameters, a key requirement of Meaningful Use. The package also permits users to fine tune payment by automatically comparing fee schedules for permitted codes with patient history so that medical practitioners can code and bill for the highest and correct level of medical care.

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.

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' (particularly 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. Quality Systems competes in a fragmented market with larger competitors such as Allscripts Healthcare Solutions (MDRX) and Cerner Corp. (CERN). Curently, we have a Neutral recommendation on Quality Systems, supported by a short-term Zacks #3 Rank (Hold).

 
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