Quality Systems, Inc. (QSII)

Our clinic had almost decided to go with Nextgen until they gave us a demo that was so bad that we stopped right there and are reevaluating the whole process. EMRs can be both boon and boondoggle. I know of some medical practices that have taken a 30% or more loss to their bottom line with EMR. Because of the use of templates in the software programs that require doctors to click on irrelevant factors regarding a patient's visit in order to satisfy billing coding requirements (i.e. upcoding the visit to a higher cost) the insurance companies are now seeing that they need to ratchet down their payments for these codes -- they have created their own monster. Also, these templates create medical records that are filled with useless unnecessary information, are idiotic to read, and not very useful to other doctors -- a big problem.
I am not surprised to hear that Nextgen is losing customers and that the company president sold all his own stock in his company. Are lawsuits on the horizon?

I work in health care and electronic medical records are all the rage. Our in-house insurance company pays physicians in days (versus weeks) if they submit their claim forms electronically. That's incentive enough to install products from Quality Systems.

Despite the "slings and arrows" of a too greedy and less than shareholder friendly CEO/BOD ( who recently back-tracked just a bit.... is the spotlight shining on general options abuse/ executive compensation already having some effect ?) ,as well as a BOD feud over the same issues, the business model should still be sufficient to ride the transitional wave to electronic medical data, muliplied by more baby boomers in the medical system over time. Been in this one since 2003 via TMF-SA, and am banking on the fact that the CEO and BOD may have learned something via the stock market price cost of their greed/feud.

Doctors need to get their patients' medical records and files off paper and into computer databases. This is one of the companies to do that.

Strong management and award winning product in electronic medical records. The government is pushing for medical practioners to move to electronic records so there is probably industry growth going forward for a number of years.

The federal government is pushing hard for electronic record keeping for hospitals. The HMO I work for spent 1 BILLION dollars in upgrading to electronic charting. Very few hospitals are using electronic record keeping currently, but within the next 10-15 years, nearly all will.

Medical software for patient records management. I don't think you need to have that repeated. This company is continuing to grow at a 50% clip yoy, they have no dept and the board of directors is harmonious now, after more than a year of contentious battles. They just quietly plug along and return solid numbers. Stock price has been flat due to a recent downgrade. No big deal, this company is in for the long haul.

The pitch for this stock can be found on the Stinky Feet discussion board at http://boards.fool.com/Messages.asp?bid=119057. Stop by and let us know what you think about this stock.

Anything that helps medical offices streamline their admin work cuts costs, and that helps with the spiraling health care costs in this country; with Dems in power, and health care sure to be an issue in 2008, I'd bet Quality Systems will be seeing plenty of business if it can help docs with theirs.

This stock got me back into investing. Bought some at $6.50 and at $11.50 in 2003 after reading a report on TMF - thanks guys.
Had some differences within the leadership, however they always kept the machine humming away - the margins are great and QSII is the market leader!
Predict $100 by 2008 !

The hospital industry has to go full EMR to be competitive. Even with the competition, there is plenty customers to go around. Hospitals will also need to pay for support plans to keep their investments running. Due to the sensitivity and 24/7 need for patient data, companies like this are here to stay.

Helathcare information technology... Obama stimulus play. Should see significant revenue going forward via the stimulus package.

Quality Systems, Inc. founded in 1974, develops and markets information systems that automate certain aspects of the healthcare industry. The company offers a network of practices that include physician hospital organizations, ambulatory care centers and community health centers. Its business is divided into two division’s i.e. QSI division that includes development of software suites mainly for dental and niche medical practitioners and the NextGen Healthcare division that focuses on developing and marketing products and services for medical practices. The NextGen division generates the bulk of around 85% of the total inflows, and is a key driver for revenue and margin growth.

The healthcare industry is changing rapidly, the providers are increasing their reliance on technology to help maximize the efficiency of business practices, improving patient care, and maintaining the privacy of patient information. Adding to it the positives of changing paper records to digital ones have induced various hospitals to become the center of technology adoption. However, the automation of medical records has just reached 14% of all U.S. physicians, thus leaving a huge room for growth in the industry where revenues are expected to grow two folds in coming five years.

The company’s future looks appealing with higher anticipated growth in the industry and top performance of NexGen that has become one of the top hundred fastest growing technologies company. Quality System also has a strong order book, which will further have a positive impact on the financial performance and earnings quality. Adding to it, company’s long record of notching up higher returns in comparison to its peers, the increasing acceptance of NextGen software and its aggressive sales team, makes Quality System a positive investment.

The leader, and best of breed in the software solution for medical practises. Large scale adoption of this tye of product, mandated by HIPPA laws, is continuing to fuel their sales. I cant see this stopping anytime soon.

Now that the board room contentions are apparently quelled, they can return to their focus on customers and shareholders. Their market niche holds exciting potential. Medical and dental practices will enjoy improved operational efficiency, while the increased accuracy and permanency of patient records is good for everone. Win - win - win!

A lot of momentum for medical software stocks. With the pressure to improve healthcare efficiency and accuracy, medical software has been championed from everyone from the President to the health insurance industry. QSII seems to be executing well even dispite the battle of their directors. There are still a large percentage of doctor practices that need to be converted to digital health records and maintanence fees will carry forward far into the future.

Consistent high growth in a field with lots of room to grow so more.

Government and companies have to decrease health care costs. One way is to automate and digitize medical records. QSII provides this type of software. PEG 5 years is 1, fairly valued. Trailing P/E is high at 34, but EPS growth should be in the 28-30 % per year. Zero debt. Earnings are increasing, sales are growing at an increasing rate and earnings have increased in each of the past five years. Growth in health care expenditures and costs show no signs of a decrease. Quality Systems' products help health care organizations control costs by automating various processes, such as health care records. Many if not all health care organization in the US are trying to control in its costs. Quality Systems is in the right place at the right moment. Insiders own 37%.

I have owned QSII since 2003.