Quality Systems to Acquire Healthcare Strategic Initiatives

Horsham, Pa.-based 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.

NextGen Healthcare Information Systems, Inc. a wholly owned subsidiary of Quality Systems, Inc., 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.com and www.qsii.com.

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.