NextGen Healthcare Information Systems, Inc., a wholly owned subsidiary of Quality Systems, Inc. (“QSI”) (NASDAQ: QSII) and a leading provider of ambulatory healthcare information systems and connectivity solutions, today announced that QSI has entered into an agreement to acquire St. Louis-based Healthcare Strategic Initiatives (“HSI”), a full-service healthcare revenue management company servicing healthcare clients.
NextGen Healthcare recently announced NextGen® Practice Solutions, a line of business devoted to providing physician practices with cost-effective revenue cycle management (RCM) services. The acquisition of HSI is one aspect of NextGen Healthcare’s growth strategy for this division.
Founded in 1996, HSI currently provides revenue management services to thousands of providers including health systems, hospitals and physicians in private practice. Its in-house team consists of more than 200 employees, including Certified Public Accountants and specialists in medical billing, coding and compliance, payer credentialing and information technology. Core services include receivable and reimbursement management and healthcare consulting (billing and collection services), with additional service offerings for medical coding and documentation education, payer credentialing and full-service information technology solutions. Through these services, HSI works on behalf of clients to optimize the revenue cycle through best practice solutions.
“This acquisition represents the execution of part of our Practice Solutions strategy as we respond to industry demand for service-based RCM models,” says Patrick Cline, president of NextGen Healthcare. “In addition to a shared vision and a commitment to client service, the companies share certain operational and strategic synergies. We’re confident that many of HSI’s clients are interested in electronic health records, and we’re confident that many of NextGen Healthcare’s customers will take advantage of services traditionally provided by HSI.”
“We are honored to be part of such an established and well-respected company,” says Ben Tischler, a partner for HSI. “Combining our extensive RCM offerings with the NextGen platform will create a new level of innovative solutions for the ambulatory market.”
As a result of the acquisition, Tim Eggena, NextGen Healthcare’s Executive Vice President of Research and Development and co-founder of the company’s practice management system, will assume responsibility for the growing NextGen Practice Solutions division.
The transaction is expected to be accretive in the current fiscal year.
About NextGen Healthcare
NextGen Healthcare Information Systems, Inc. a wholly owned subsidiary of Quality Systems, Inc. (NASDAQ: QSII), develops and markets computer-based practice management and electronic medical records systems for medical group practices and Healthcare Systems. For more information about NextGen, please visit www.nextgen.comand www.qsii.com.
About Healthcare Strategic Initiatives
Healthcare Strategic Initiatives is a full-service healthcare revenue management company providing receivable and reimbursement management and healthcare consulting including billing and collection services, with additional service offerings for medical coding and documentation education, payer credentialing services and full-service information technology solutions. For more information, please visit www.hsillc.com.
This news release may contain forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future (including, without limitation, statements concerning revenue and net income), are forward-looking statements within the meaning of these laws and involve a number of risks and uncertainties. Management believes that these forward-looking statements are reasonable and are based on reasonable assumptions and forecasts, however, undue reliance should not be placed on such statements that speak only as of the date hereof. Moreover, these forward-looking statements are subject to a number of risks and uncertainties, some of which are outlined below. As a result, actual results may vary materially from those anticipated by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: volume and timing of systems sales and installations; length of sales cycles and installation process; the possibility that the products will not achieve market acceptance; seasonal patterns of sales and customer buying behavior; the development by competitors of new or superior technologies; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; undetected errors or bugs in software; product liability; changing economic, political or regulatory influences in the health-care industry; changes in product-pricing policies; availability of third-party products and components; competitive pressures including product offerings, pricing and promotional activities; the Company's ability or inability to attract and retain qualified personnel; possible regulation of the Company's software by the U.S. Food and Drug Administration; uncertainties concerning threatened, pending and new litigation against the Company including related professional services fees; uncertainties concerning the amount and timing of professional fees incurred by the Company generally; changes of accounting estimates and assumptions used to prepare the prior periods' financial statements; general economic conditions; and the risk factors detailed from time to time in Quality Systems' periodic reports and registration statements filed with the Securities and Exchange Commission. A significant portion of the Company's quarterly sales of software product licenses and computer hardware is concluded in the last month of the fiscal quarter, generally with a concentration of such revenues earned in the final ten business days of that month. Due to these and other factors, the Company's revenues and operating results are very difficult to forecast. A major portion of the Company's costs and expenses, such as personnel and facilities, are of a fixed nature and, accordingly, a shortfall or decline in quarterly and/or annual revenues typically results in lower profitability or losses. As a result, comparison of the Company's period-to-period financial performance is not necessarily meaningful and should not be relied upon as an indicator of future performance. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Jennifer Kuesel,
215-657-7010
jkuesel@nextgen.com
