Quality Systems sells off NextGen inpatient unit
Quality Systems, Inc. on Thursday announced the sale of the hospital division of its NextGen Healthcare subsidiary to QuadraMed, which develops a range of inpatient technologies, from enterprise scheduling to revenue cycle management.
Terms of the sale were not disclosed.
"The divestiture of our Hospital Solutions Division enables Quality Systems and NextGen Healthcare to focus on our core, ambulatory business, which includes one of the largest installed bases in the industry," said Quality Systems President and CEO Rusty Frantz, in a press statement. "This transaction underscores our commitment to further cementing our market position and emphasizing our core strengths within the ambulatory segment of healthcare delivery."
On Thursday, QSII also announced its fiscal 2016 second quarter financials. Revenues for Q2 reached $125.4 million, up 4 percent from a year ago. Net income for reached $8.3 million, compared with $4.8 million for the comparable period last year.
"As part of our ongoing strategy, we remain focused on further expanding upon the company's leadership position in the ambulatory space by delivering the client experience, software and services that help our clients navigate the transition to a value-based healthcare economy," said Frantz in announcing the results.
QuadraMed, meanwhile, plans to make good use of its new inpatient technology, which is mostly deployed in rural and critical access hospitals across the U.S.
"The Hospital Solutions Division is an exciting addition to our HCIT portfolio," said Jerry Canada, president of Harris Healthcare Group, QuadraMed's parent company, in a statement. "We look forward to working in the years ahead with the 100 plus organizations that are now part of our group."