IRVINE, Calif.--(BUSINESS WIRE)--Quality Systems, Inc. (“QSI”) (NASDAQ: QSII), a leading provider of healthcare information systems and connectivity solutions, today announced that QSI has entered into an agreement to acquire Opus Healthcare Solutions, Inc. The acquisition complements and will be integrated with the assets of Sphere Health Systems, Inc., which were acquired in August 2009. Both companies are established developers of software and services for the inpatient market and will become part of NextGen Healthcare Information Systems, Inc., QSI’s wholly owned subsidiary. The transactions are expected to be accretive in QSI’s fiscal year 2011, ending March 31, 2011.
NextGen Healthcare will focus on providing solutions to hospitals with 100 beds or less, a marketplace that has been historically underserved and is in desperate need of state-of-the-art systems.
“Combining the assets of Opus and Sphere will allow NextGen Healthcare to provide an integrated clinical and financial solution that is unmatched in terms of functionality. These acquisitions are a natural extension of our ‘single platform’ model and demonstrate how well we are positioned to meet the needs of the community healthcare market. This will clearly further strengthen NextGen Healthcare’s market leadership role,” noted Philip N. Kaplan, chief operating officer at QSI.
Scott Decker, president at NextGen Healthcare, added, “We have seen demand grow in the rural and community marketplace due to the Stark relaxation, emergence of health information exchange initiatives and impending incentives resulting from the American Recovery and Reinvestment Act (ARRA). Through our many years of working with ambulatory providers closely associated with or owned by community hospitals, it became clear that we could meet this demand by broadening our offering to include both ambulatory and inpatient solutions.
“In addition, clients have expressed the need for a single, ‘cloud-based’ technology platform that can be leveraged across ambulatory and inpatient care settings. These new acquisitions afford us the necessary capabilities to address client needs and fill a void currently present within the rural and community hospital marketplace. When considered in conjunction with our complementary Siemens Strategic Partnership, this announcement completes a strategy for distributing NextGen solutions across the entire inpatient and outpatient continuum,” Decker concluded.
"As the demand for EHR technology continues to grow, the timing is right for healthcare IT vendors to align and provide solutions that span the entire continuum of care. Our two companies share a proven track record for enhancing patient care with innovative technology, and in light of recent ARRA developments, we believe we are uniquely positioned to facilitate seamless integration across care environments,” said Tim Rhoads, chief executive officer and co-founder of Opus Healthcare Solutions.
Founded in 1987 and headquartered in Austin, Texas, Opus Healthcare Solutions, Inc. delivers Web-based clinical solutions to hospital systems and integrated health networks nationwide and is one of only three companies worldwide that has achieved the ’08 CCHIT Certified® Inpatient EHR System Certification Level. Based on a Web 2.0 architecture that leverages full “cloud computing” capabilities, the ’08 CCHIT Certified® Inpatient EHR System OpusClinicalSuite® Version 2.3 (Pre-Market) pushes clinical capabilities beyond the four walls of the hospital. The OpusClinicalSuite® provides a single point-of-access for clinicians to enter and retrieve all inpatient clinical information (patient vitals, lab results, medications, and imaging results) from the bedside or remote locations, including Smartphone access from any device with a data plan and standard Web browser. Implementing the OpusClinicalSuite® with its CPOE, Clinical Documentation, and Clinical Decision support capabilities will position hospitals to achieve the Stage 4 Adoption Level in the HIMSS® EMR Adoption Model and benefit from ARRA reimbursement opportunities.
Sphere Health Systems is a Laguna Hills, Calif.-based application software development and consulting firm. NextGen Healthcare acquired the company’s SPIRIT ENTERPRISE product, which is a comprehensive hospital information system (HIS) that includes applications for patient management, decision support, financial management and human resources.
About Quality Systems, Inc.
Irvine, Calif.-based Quality Systems, Inc. and its NextGen Healthcare Information Systems, Inc. subsidiary develop and market computer-based practice management, patient records and revenue cycle management applications as well as connectivity products and services for medical and dental group practices. NextGen Healthcare provides integrated electronic health record and practice management systems, connectivity solutions and billing services for hospitals and ambulatory practices of all sizes and specialties. Visit www.qsii.com and www.nextgen.com for additional information.
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. 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 timing, cost and success or failure of new product and service introductions, development and product upgrade releases; undetected errors or bugs in software; 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.
CCHIT Certified® is a registered mark of the Certification Commission for Health Information Technology.