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NextGen Healthcare Continues Growth in California CHC Market

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HORSHAM, Pa. & SAN JOSE, Calif. - (BUSINESS WIRE) - NextGen Healthcare Information Systems, Inc., a wholly owned subsidiary of Quality Systems, Inc. (NASDAQ: QSII) and a leading provider of healthcare information systems and connectivity solutions, today announced an agreement with Gardner Family Health Network to deploy NextGen Ambulatory EHR and NextGen Practice Management, as well as the QSI Dental System. Gardner is the 42nd health center in California to partner with NextGen Healthcare.

Through Gardner's five locations, Healthcare for the Homeless mobile unit, and nearly 50 providers, the federally qualified health center (FQHC) provides comprehensive primary care and behavioral health services to 35,000 patients in low- and moderate-income Santa Clara County communities. The agreement with NextGen Healthcare will give all Gardner providers access to leading technology that helps support the organization's quality of care mission. NextGen Practice Management is scheduled to be implemented across the Gardner enterprise by late June and with the first health center slated to be "live" on NextGen Ambulatory EHR by the end of 2010.

"During the past decade, we have worked to create a leading system of care in Silicon Valley and the use of NextGen marks another step in that evolution," said Reymundo Espinoza, MPH, CEO for Gardner Family Health Network. "We're situated in the heart of technology, but our industry lags in using it to advance the quality of the services we deliver. Gardner aims to becoming a showcase of innovation for our region and looks forward to partnering with NextGen Healthcare in this regard."

With several new FQHC clients signed during the first quarter of 2010, including six in California, NextGen Healthcare now has 200 FQHCs in its client base. When combined with tribal and rural health centers, the company provides integrated NextGen Ambulatory EHR and Practice Management systems and QSI's dental record software to more than 300 health centers in 43 states, as well as the U.S. Virgin Islands. In addition to Gardner, some of NextGen Healthcare's newest CHC clients include: Marin Community Clinics, Novato, Calif.; Riggs Community Health Center, Lafayette, Ind.; The Effort, Inc., Sacramento, Calif.; and Venice Family Clinic, Venice, Calif.

For a FQHC like Gardner that has multiple locations and referral sources, NextGen Ambulatory EHR and the QSI Dental System provide the integrated platform needed to create a single record that follows a patient throughout the care process. In addition, the solution enables users to capture clinical values as discrete data elements. These elements can then be used for detailed, population-based analysis with the goal of improving outcomes and treatment regimens.

NextGen Practice Management helps automate complex CHC billing requirements by supporting standard HIPAA transaction sets and providing capabilities needed for encounter billing to UGS and Medicaid programs, including automatic claim splits for carve-out services.

"The fact that NextGen Healthcare could provide a 'one-stop shop' for our technology and interoperability needs was particularly appealing," said Ignacio Perez, CFO for Gardner Family Health Network. "We also believe that technology is only as good as the people that support it. During the evaluation process, we formed a valuable partnership with a number of individuals at NextGen Healthcare. The team's professionalism, responsiveness and success stories in the California CHC market proved they have the resources and infrastructure to help make our technology initiative successful."

"The CHC market benefits from specialized service, training, and experience at NextGen Healthcare-including a dedicated Director of Community Health and Indian Health; active participation in government CHC initiatives and industry associations; and customized implementation and training methods geared to CHCs," said Scott Decker, president of NextGen Healthcare. "Gardner's forward-thinking approach to enhancing quality of care can serve as a model for other CHCs to follow."

For more details on how NextGen Healthcare supports health centers and to download a white paper on the development of Health Center-Controlled Networks (HCCNs), please visit http://www.nextgen.com/Specialties/CHC/. Further information on Gardner Family Health Network can be found at www.gardnerhealth.org.

About NextGen Healthcare

NextGen Healthcare Information Systems, Inc., a wholly owned subsidiary of Quality Systems, Inc. (NASDAQ: QSII), provides integrated clinical, financial and connectivity solutions for ambulatory, inpatient and dental provider organizations. For more information, please visit www.nextgen.com and www.qsii.com. Follow NextGen Healthcare on Twitter at www.twitter.com/nextgen or Facebook at http://www.facebook.com/NextGenHealthcare.

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: the volume and timing of systems sales and installations; length of sales cycles and the installation process; the possibility that products will not achieve or sustain 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 the Company's 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.

NextGen Healthcare
Kristy DelMuto, 215-657-7010
kdelmuto@nextgen.com



 
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