NextGen Healthcare

NextGen Healthcare is an American healthcare software and services company headquartered in Irvine, California. Its products and services are aimed primarily at ambulatory medical and dental practices, physician groups, specialty organizations, and other healthcare providers. The company’s portfolio combines electronic health records, practice-management software, revenue-cycle services, patient engagement tools, data integration, quality measurement, analytics, mobile access, and information-security services. The business traces its origins to Quality Systems, Inc., a company founded by Sheldon Razin in 1973 in Corona, California. Razin initially operated the business from his home with $2,000, and the company was incorporated in April 1974. Quality Systems began as a dental-software provider before expanding into broader healthcare information systems. It became a public company on NASDAQ in December 1982 under the ticker QSII. During the 1990s and 2000s, Quality Systems broadened its capabilities through acquisitions and internal restructuring. Clinitec, founded in 1994 by Pat Cline and Bryan Rosenberger to develop software for converting paper records into electronic medical records, became part of Quality Systems after the company acquired an initial interest in 1995 and the remaining equity in 1996. Quality Systems later acquired Micromed, a provider of front- and back-office practice-management software, in 1997. Clinitec and Micromed were combined in 1999, creating the MicroMed division, which was renamed the NextGen Healthcare Information Systems division in 2001. The company continued to add services and technology through acquisitions. Its 2008 purchases of HSI and Practice Management Partners expanded billing, revenue-cycle, and consulting capabilities. In 2009, the company changed the name of its electronic medical record product from NextGen EMR to NextGen EHR. The acquisition of Sphere Health Systems in 2009 and the agreement to acquire Opus Healthcare Solutions in 2010 extended its reach into inpatient software and services, although the inpatient products were later divested. In 2013, Quality Systems acquired Mirth Corporation, bringing the Mirth Connect healthcare integration engine into its portfolio. Quality Systems also expanded its cloud and connectivity capabilities. It agreed in 2015 to acquire HealthFusion, a San Diego-based developer of web-based healthcare software, for $165 million plus potential contingent consideration of up to $25 million. Later acquisitions included Topaz Information Solutions in 2019, Medfusion in 2019, and OTTO Health, for which an acquisition agreement was announced in December 2019. These transactions strengthened the company’s patient-engagement, communication, connectivity, and ambulatory-platform offerings. On September 7, 2018, Quality Systems changed its corporate name to NextGen Healthcare, Inc., aligning the legal corporate identity with its principal operating brand. Its NASDAQ ticker changed from QSII to NXGN on September 10, 2018. In September 2023, private-equity firm Thoma Bravo announced an agreement to acquire the company and take it private at a total enterprise value of approximately $1.8 billion. The transaction was completed later in 2023, ending NextGen Healthcare’s period as a publicly traded company. The company continues to operate as a healthcare technology and services provider under private ownership.

NextGen Healthcare developed from Quality Systems, Inc., a company established by Sheldon Razin in 1973 in Corona, California. The business began as a dental-software company. Razin reportedly started the operation from his home study with $2,000, and Quality Systems was incorporated in April 1974. The company entered the public markets in December 1982, when it began trading on NASDAQ under the symbol QSII. The company’s expansion from dental software into wider ambulatory healthcare technology accelerated in the 1990s. Clinitec was founded in 1994 by Pat Cline and Bryan Rosenberger to develop software that helped healthcare organizations convert paper records into electronic medical records. Quality Systems acquired an initial interest in Clinitec in 1995 and purchased the remaining equity in 1996. In May 1997, Quality Systems acquired Micromed, whose software covered front-office and back-office practice-management functions. In April 1999, Clinitec and Micromed were combined into a single operating division called MicroMed. That division was renamed the NextGen Healthcare Information Systems division in 2001. Quality Systems expanded beyond core software into billing and consulting. In 2008, it acquired HSI of St. Louis, Missouri, and Practice Management Partners of Hunt Valley, Maryland. These acquisitions supported the company’s billing-services and revenue-cycle consulting activities. The company renamed its electronic medical record product from NextGen EMR to NextGen EHR in 2009, reflecting the industry’s broader adoption of electronic health record terminology. The company also pursued inpatient and interoperability capabilities. Quality Systems acquired Sphere Health Systems in August 2009 and entered an agreement in February 2010 to acquire Opus Healthcare Solutions. The related software and services were intended to support the inpatient market through the NextGen Healthcare organization. In 2013, Quality Systems acquired Mirth Corporation, developer of Mirth Connect, an open-source healthcare integration engine used by healthcare entities to exchange and connect data. Quality Systems continued to build its ambulatory and cloud-oriented portfolio through acquisitions. In October 2015, it announced an agreement to acquire HealthFusion for $165 million, with potential additional contingent consideration of up to $25 million. HealthFusion was based in San Diego and developed web-based software for physicians, hospitals, and medical billing services. In 2019, NextGen Healthcare acquired Topaz Information Solutions and completed its acquisition of Medfusion, which had been announced in November. It also announced an agreement to acquire OTTO Health in December of that year. The corporate brand was formalized in 2018. On September 7, Quality Systems changed its name to NextGen Healthcare, Inc., and on September 10 its NASDAQ ticker changed from QSII to NXGN. This change connected the corporate identity more directly with the NextGen product and service portfolio. In September 2023, Thoma Bravo announced an agreement to acquire NextGen Healthcare and take it private at a total enterprise value of approximately $1.8 billion. The transaction was completed later in 2023, ending the company’s public-market listing. NextGen Healthcare remains focused on software and services for medical and dental practices, including electronic records, practice administration, patient engagement, interoperability, quality measurement, revenue-cycle operations, analytics, and data protection.

1. 2023Thoma Bravo takes NextGen Healthcare private

   Thoma Bravo completes its acquisition of NextGen Healthcare at an enterprise value of approximately $1.8 billion.

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2. 2019Expansion through Topaz, Medfusion, and OTTO Health

   NextGen Healthcare acquires Topaz Information Solutions, completes the Medfusion acquisition, and announces an agreement to acquire OTTO Health.

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3. 2018Corporate rebranding and ticker change

   Quality Systems becomes NextGen Healthcare, Inc.; its NASDAQ ticker changes from QSII to NXGN.

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4. 2015HealthFusion acquisition agreement

   Quality Systems announces an agreement to acquire HealthFusion for $165 million plus potential contingent consideration.

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5. 2013Mirth Corporation acquisition

   Quality Systems acquires Mirth Corporation, bringing the Mirth Connect healthcare integration engine into the portfolio.

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6. 2008Billing and consulting expansion

   Acquisitions of HSI and Practice Management Partners broaden billing services and revenue-cycle consulting.

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7. 2001NextGen Healthcare Information Systems division is named

   The former MicroMed division is renamed the NextGen Healthcare Information Systems division.

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8. 1997Micromed acquisition

   Quality Systems acquires Micromed, adding front-office and back-office practice-management software.

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9. 1994Clinitec is formed

   Pat Cline and Bryan Rosenberger establish Clinitec to develop electronic medical-record conversion software.

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10. 1982Public-market debut

    Quality Systems begins trading on NASDAQ under the symbol QSII.

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11. 1974Quality Systems is incorporated

    Quality Systems is formally incorporated in April.

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12. 1973Quality Systems is founded

    Sheldon Razin establishes Quality Systems in Corona, California, initially as a dental-software business.

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An integrated ambulatory healthcare technology and services provider combining clinical records, practice administration, interoperability, patient engagement, analytics, and revenue-cycle capabilities in a connected platform.

• NextGen Enterprise Ambulatory EHRElectronic health record

  An enterprise-oriented ambulatory electronic health record platform combining clinical documentation and related practice workflows. The system is designed for medical practices and healthcare organizations that require a shared data environment for clinical records, user management, and administrative operations.

• NextGen Practice ManagementPractice management

  Practice-management software supporting operational and administrative activities such as registration, scheduling, billing, and related front-office and back-office workflows. It shares a database foundation with the company’s core ambulatory EHR offering.

• NextGen OfficeCloud healthcare software

  A healthcare software offering intended to provide practice-management and clinical capabilities through a web-based or cloud-oriented environment for provider organizations.

• NextGen Patient PortalPatient engagement

  A patient-facing portal supporting digital interaction between patients and healthcare practices, including access to selected health information and communication workflows.

• NextGen Health Data HubHealthcare data management

  A data-oriented platform intended to consolidate and organize healthcare information for use across clinical, operational, reporting, and analytical workflows.

• NextGen Health Quality MeasuresHealthcare quality measurement

  Tools supporting the capture, calculation, and reporting of healthcare quality measures, helping provider organizations monitor performance and meet applicable reporting requirements.

• NextGen MobileMobile healthcare application

  A mobile extension of the NextGen environment intended to give authorized healthcare users access to selected clinical and practice workflows away from a desktop setting.

• NextGen RosettaHealthcare interoperability

  An interface and interoperability platform designed to connect healthcare systems and support the movement of information between applications, organizations, and data environments.

• Mirth ConnectHealthcare integration engine2013

  An open-source healthcare integration engine acquired through Mirth Corporation in 2013. It is used to connect healthcare applications and facilitate the exchange and transformation of clinical and administrative data.

• Revenue Cycle ManagementHealthcare services

  Services supporting the financial and administrative lifecycle of healthcare claims and payments, including billing-related processes, collections workflows, and revenue-cycle operations for provider organizations.

• NextGen EDI ServicesElectronic data interchange

  Electronic data interchange services intended to support the structured exchange of transactions and information between healthcare practices, payers, clearinghouses, and other participants.

• NextGuard Data ProtectionHealthcare data security

  A data-protection service within the NextGen portfolio focused on safeguarding healthcare information and supporting the security needs of provider organizations.

• NextGen Inpatient ClinicalsInpatient healthcare software

  An inpatient clinical software product that was formerly associated with NextGen Healthcare. The product was acquired by QuadraMed in 2015 and is therefore no longer part of the company’s current product portfolio.

• NextGen Inpatient FinancialsInpatient financial software

  An inpatient financial software product formerly associated with NextGen Healthcare. It was acquired by QuadraMed in 2015 and is no longer identified as a current NextGen offering.

• 2023Take the company privateM&A

  NextGen Healthcare had operated as a publicly traded healthcare technology company on NASDAQ.

  What changed. Thoma Bravo agreed to acquire NextGen Healthcare and completed the transaction later in 2023.

  Aftermath. NextGen Healthcare became privately held under Thoma Bravo ownership, ending its public listing.

  Total enterprise value. $1.8 billion (2023 acquisition)

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• 2019Expand patient-engagement and connectivity capabilitiesM&A

  NextGen Healthcare sought to broaden its ambulatory technology platform beyond core records and practice-management software.

  What changed. The company acquired Topaz Information Solutions, completed the acquisition of Medfusion, and announced an agreement to acquire OTTO Health.

  Aftermath. The transactions expanded the portfolio in patient communication, engagement, and connected healthcare workflows.

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• 2018Adopt the NextGen Healthcare corporate identityStrategy

  Quality Systems had developed the NextGen brand as a major operating identity for its healthcare information systems business.

  What changed. The company changed its legal corporate name to NextGen Healthcare, Inc. and changed its NASDAQ ticker from QSII to NXGN.

  Aftermath. The rebranding aligned the public company’s name and market identity with its principal healthcare software brand.

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• 2023Thoma Bravo agrees to take NextGen Healthcare private

  Private-equity firm Thoma Bravo announced an agreement to acquire NextGen Healthcare at a total enterprise value of approximately $1.8 billion.

  M&A
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• 2023NextGen Healthcare transaction is completed

  The Thoma Bravo transaction was completed later in 2023, making NextGen Healthcare a privately held company.

  M&A
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• 2019NextGen Healthcare acquires Topaz Information Solutions

  NextGen Healthcare acquired Topaz Information Solutions as part of its expansion of healthcare technology capabilities.

  M&A
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• 2019NextGen Healthcare completes Medfusion acquisition

  The company announced the Medfusion acquisition in November and completed it in December, adding patient-engagement and communication capabilities.

  M&A
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• 2019NextGen Healthcare announces agreement to acquire OTTO Health

  NextGen Healthcare announced an agreement to acquire OTTO Health, continuing its expansion in connected healthcare and patient communication technology.

  M&A
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• 2019NextGen Healthcare acquires Medfusion

  NextGen Healthcare announced the acquisition of Medfusion in November 2019 and completed the transaction in December, adding patient-engagement and digital-health capabilities.

  M&A
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• 2019NextGen Healthcare announces OTTO Health acquisition

  The company announced an agreement to acquire OTTO Health, extending its portfolio into additional digital healthcare and patient-interaction capabilities.

  M&A
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• 2018Quality Systems changes corporate name to NextGen Healthcare

  Quality Systems adopted the NextGen Healthcare name, and its NASDAQ ticker changed from QSII to NXGN shortly afterward.

  Leadership changeOther
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1. NextGen Healthcare