Quality Systems and its Horsham-based NextGen Healthcare continue rapid growth; NextGen reports first payment to client for "Meaningful Use"

Quality Systems, whose business consists primarily of NextGen Healthcare of Horsham, reported its earnings last week. For its 4th quarter, net income was up 42% on revenue growth of 24%. For the full 2011 fiscal year, revenue reached $353.4 million, up 21%, and net income was $61.6 million, an increase of 27%.

Quality Systems' market value is now $2.5 billion; its shares are up to $86 from $56 a year ago.

NextGen Healthcare, whose electronic health record (EHR) systems are targeted primarily towards smaller medical practices, is benefitting from the Obama Administration's HITECH Act of 2009, which offers significant subsidies to physicians who convert to EHRs and achieve the government criteria for "meaningful use". NextGen reported last week that one of its clients just became one of the first providers to receive payment for demonstrating meaningful use.

NextGen Healthcare says it has more than 1200 employees.