Quality Systems, Inc. Acquires CQI Solutions, Inc.

Acquisition to Aid Company in Expanding Health IT Solutions for Hospitals

IRVINE, Calif.--(BUSINESS WIRE)-- Quality Systems, Inc. (“QSI”) (NASDAQ: QSII) announced today that it has entered into an agreement to acquire CQI Solutions, Inc., a provider of surgery information systems installed at more than 100 of the nation’s premier hospitals. CQI will become part of QSI’s wholly owned subsidiary, NextGen Healthcare Information Systems, Inc., offering specific solutions to clients of the NextGen® Inpatient Solutions business unit.

New Braunfels, Texas-based CQI has been a leader in surgical suite solutions within the hospital market for more than 15 years. Its patient scheduling and surgical information systems will be sold both independently as well as part of an integrated solution within the NextGen® Inpatient Solutions portfolio, which includes NextGen® Inpatient Clinicals and NextGen® Inpatient Financials.

CQI offers a range of solutions, including hospital-wide patient scheduling, patient tracking boards, clinical department procedural costing & charge capture, complete surgical services management and electronic charting. These tools provide department managers and hospital executives better insight into their operations. CQI software provides increased efficiencies in patient throughput, resource allocation, clinical documentation, materials management, charge capture, reimbursement and management reporting. Previously, NextGen Healthcare and CQI demonstrated their ability to design effective solutions for joint clients.

“The acquisition of CQI complements the NextGen Inpatient Solutions portfolio, enabling us to expand our reach to include surgery facilities and to meet a critical need in the hospital sector for an integrated offering,” said Steve Puckett, executive vice president, inpatient solutions. “We are pleased to extend our portfolio to meet these cross-departmental needs, demonstrating our commitment to the community and rural hospital marketplace. With the additional integration of our award-winning ambulatory solutions, our inpatient and ambulatory clients are now collecting critical data across the care continuum, helping them meet requirements of quality of care initiatives and current business drivers such as Meaningful Use, where clients have already earned in excess of $5 million in incentives.”

“CQI is excited about its new partnership with NextGen Healthcare,” said John McCarthy, president and co-founder of CQI, who will maintain responsibility within NextGen Healthcare for sales of surgery solutions. “Joining forces today will enable us to deliver a full suite of solutions to our hospital partners. This strategic relationship is a great fit for CQI and its clients, and I look forward to joining the NextGen Healthcare team.”

About Quality Systems, Inc.

Irvine, Calif.-based Quality Systems, Inc. and its NextGen Healthcare subsidiary develop and market computer-based practice management, electronic health records and revenue cycle management applications as well as connectivity products and services for medical and dental group practices and small hospitals. Visit www.qsii.com and www.nextgen.com for additional information.

SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS

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: 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; impact of incentive payments under The American Recovery and Reinvestment Act on sales and the ability of the Company to meet continued certification requirements; 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 the Company’s 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.



CONTACT:

Quality Systems, Inc.
Paul Holt, CFO, 949-255-2600
[email protected]
or
Susan J. Lewis, 303-804-0494
[email protected]

KEYWORDS:   United States  North America  California  Texas

INDUSTRY KEYWORDS:   Surgery  Technology  Data Management  Hardware  Software  Practice Management  Health  Dental  Hospitals  Radiology  Other Health  Nursing  Managed Care

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