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Quality Systems Executes Agreement to Acquire Practice Management Partners

Posted on: Thursday, 16 October 2008, 12:00 CDT

NextGen Healthcare Information Systems, Inc., a wholly owned subsidiary of Quality Systems, Inc. ("QSI") (NASDAQ: QSII) and the leading provider of ambulatory healthcare information systems and connectivity solutions, today announced that the company has entered into an agreement to acquire Practice Management Partners ("PMP"), a full-service healthcare revenue cycle management ("RCM") company.

Headquartered in Maryland and founded in 2001, PMP provides physician billing and technology management services to hundreds of healthcare providers, primarily in Mid-Atlantic region. The company employs approximately 200 people and generates approximately $16 million in annual revenue.

In May, QSI and NextGen Healthcare announced the acquisition of another revenue cycle management company, Healthcare Strategic Initiatives ("HSI"), headquartered in St. Louis, Missouri.

Patrick Cline, President of NextGen Healthcare said "We have been very pleased with the demand we have seen for our revenue cycle management services, and while we remain committed to organic growth in all areas of our business, PMP will help to build out our RCM capability both geographically and with regard to capacity and talent. This acquisition also continues to build our base of recurring, visible revenue. Like HSI, PMP presents a number of strategic synergies."

"This is an exciting step for PMP. Our proprietary denial management science and account receivable methodologies coupled with our strong management team and diverse client base made PMP an attractive partner for NextGen. Powered by NextGen, we will be able to offer what we know the physician community really needs and what the market is demanding, a truly integrated revenue cycle management solution," said Don Good, President of Practice Management Partners.

Perry Snyder, Founder of PMP, said "We're very pleased to be joining NextGen Healthcare. Our clients will be pleased to know that like PMP, NextGen Healthcare builds longstanding relationships based upon a track record of customer service, excellent results and tremendous value."

The transaction is expected to be accretive in the first year.

About NextGen Healthcare

NextGen Healthcare Information Systems, Inc. a wholly owned subsidiary of Quality Systems, Inc. (NASDAQ: QSII), develops computer-based practice management and electronic medical records systems, and provides related services to medical group practices and healthcare systems. For more information about NextGen, please visit www.nextgen.com and www.qsii.com.

About Practice Management Partners

PMP provides revenue cycle management technology and services to community based healthcare practices and provider organizations. For more information, please visit www.pmptrs.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.

Source: Business Wire

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