NextGen Healthcare (Horsham) parent Quality Systems settles with activist investor; Could sale be in the future?

Tom Paine

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Quality Systems, Inc., the Irvine, California-based corporation whose primary business unit is Horsham-based NextGen Healthcare, may be looking for a buyer, according to some reports.

Speculation was heightened by an agreement announced on Wednesday between Quality and activist investor Clinton Group, in which Quality is expected to add three of the investor's nominees to its board, two of whom will also serve on a transaction committee which will evaluate Quality Systems' strategy and direction.

Quality Systems, which provides electronic health record (EHR) systems and related services, was riding the wave of "meaningful use" funding authorized by the Federal stimulus program to incentivize medical practices to adopt electronic record keeping. The stock hit $48.50 in September 2011, but closed at $22.01 (NASDAQ: QSII ) on Friday as growth has lagged behind several other EHR providers, giving it a current market value of $1.3 billion.

Qaulity reported revenue of $460.2 million for its fiscal year ending March 31, 2013, an increase of 7% over the prior year. Net income was $42.7 million, a decrease of 44% from the prior year. Revenue generated by NextGen's operating units account for well over 90% of Quality's total revenue.

An analyst quoted in an Med City News article names Siemens, whose Malvern-based Healthcare IT unit already partners with NextGen in certain areas, as one possible buyer should it be sold.

Patrick B.Cline co-founded Clinitec, based in Horsham, in 1994; it was acquired by Quality Systems two years later and became the foundation of NextGen Healthcare. Cline retired from NextGen and Quality at the end of 2011, and is currently CEO of Irving, Texas-based Lightbeam Health Solutions.

Lots of Healthcare IT news today, since the Healthcare Information and Management Systems Society (HIMSS) is holding its annual conference in Orlando. Also, Comcast gets its so-called day in court with the FCC, but it sounds like the jury has already decided.



Microsoft Joins Forces with SAP America for Healthcare IT (PRNewswire via FoxBusiness)
Ironic timing, considering the New York Times article on Saturday.


FCC Mulling New Internet Rules (Light Reading: Cable Digital News)

Comcast Pursuing $35 Digital Dongle (Light Reading: Cable Digital News)
Didn't know what a Dongle was until I read this.


Motorola Acquires Chinese Digital Cable Set-Top Assets (TMCnet: IT Communications)

Moto Calls Up Wideband CPEs (Light Reading: Cable Digital News)


Avenue A | Razorfish Attributes $735 Million of Online Spend to Vertical Properties and Search Engines (Avenue A | Razorfish Press Release)

Avenue A SVP: Microsoft + Yahoo = Irrelevant (Silicon Alley Insider)

Rohm and Haas signs IBM chip deal (Associated Press via CNNMoney)

Liberty Media gets FCC OK for control of DirecTV (bizjournals.com via MSN Money)

Unisys Signs $225M Australian Contract (Associated Press via Forbes)

MEDecision Partners with NextGen Healthcare (BusinessWire)
Two area companies work together.

CapMed Introduces icePHR Mobile, Allowing Consumers to Access Personal Health Records (PHRs) from Cell Phones (BusinessWire)

Draeger Launches New Infinity® Omega Solution in the USA – Featuring a Widescreen for Integrated Patient Monitoring and Electronic Records, Both at the Bedside (BusinessWire)

Phoenix Data Systems Extends EDC Platform and Electronic Submission Capabilities (BusinessWire)

Albert Einstein Healthcare Network CMIO To Present Lecture On Automatic Patient Tracking Insights At HIMSS Annual Conference (Data Collection Online)

Microsoft Should Buy SAP Instead of Yahoo (Silicon Alley Insider)


Join a user group (The Apple Core: ZDNet Blogs)
Jason O'Grady commemorates tenth anniversary of the Philadelphia PowerBook Users Group.

Tacoma and Lakewood police officers will get high-tech help
Tacoma, Lakewood police grant to pay for crime early warning system (Tacoma News Tribune)
Will use GIS technology from Philadelphia-based Avencia.

The New Face of the Silicon Age
How India became the world's computer capital. (Little India)

Two interesting tech events will be held in Philadelphia next week. InfoCommerce 2007 will be held at the Park Hyatt from September 24 through the 26th. The same group will also stage a conference called HealthContent 2007 on the 24th, also at the Park Hyatt. Not sure about seating available for the conference, although I believe there is also an exhibit hall.

The 6th RFID, Barcoding & Emerging Technologies for Hospitals and Health Systems (that's a mouthful) will be held at the Hub Cira Centre in Philadelphia from September 24-26. It's obviously a major topic of interest to many in the Philadelphia area.