NextGen Healthcare and VHA to Bring Integrated Clinical and Financial Solutions to Hospitals

National Healthcare Network Gains Access to NextGen® Technology to Demonstrate Meaningful Use and Lay the Foundation for Accountable Care

HORSHAM, Pa. (September 21, 2010) – NextGen Healthcare Information Systems, Inc., a wholly owned subsidiary of Quality Systems, Inc. (NASDAQ: QSII) and a leading provider of healthcare information systems and connectivity solutions, announced today it has entered into an agreement with VHA Inc., a national health care network serving 1,400 not-for-profit hospitals and 30,000 non-acute care providers across the nation.

Under the agreement, VHA will promote NextGen® clinical and financial solutions to its ambulatory and inpatient members. In turn, NextGen Healthcare will offer special pricing on its solutions, enabling VHA members to leverage state-of-the-art technology that meets their emerging needs for functionality, pay-for-quality initiatives, and seamless integration across care environments.

The integrated NextGen® Ambulatory EHR and NextGen® Practice Management solutions help to streamline patient care with standardized, real-time clinical and administrative workflows throughout any size organization. NextGen® Inpatient Clinicals and NextGen® Inpatient Financials extend the company’s innovation across the continuum of care to deliver secure, flexible, and easy-to-use applications to rural and community hospitals.

“Hospitals and physicians are making substantial commitments to adopt healthcare technology, yet community hospitals remain historically underserved, lacking access to top-tier resources and solutions,” said Scott Decker, President of NextGen Healthcare. “NextGen Healthcare and VHA share a vision of how the newest generation of integrated solutions can meet short-term Meaningful Use needs for hospitals, while helping them establish the foundation for new, quality-driven reimbursement models. Our collaboration will build upon their infrastructure with advanced technology that spans ambulatory and inpatient settings to address emerging market requirements, quality and safety initiatives, physician satisfaction and the patient experience.”

VHA’s network will have the opportunity to take advantage of specialized implementation and training services from NextGen Healthcare, designed to help hospitals and practices maximize their investment in NextGen® technology, quickly and effectively. Members will also have access to NextGen Healthcare’s extensive educational programs, which include webinars, eLearning, and live demonstrations on timely topics such as Meaningful Use, hospital stimulus requirements, health information exchange and patient-centered medical home. In addition, providers can leverage the company’s Grants Resource Center to help them identify and apply for funding opportunities made possible by healthcare reform.

“The EHR space is obviously a focus of many health care institutions, and we identified NextGen Healthcare as a market leader early in our evaluation of potential services,” said David Gillan, VHA vice president of purchased services and strategic sourcing. “We believe that NextGen Healthcare brings a proven track record in this evolving market and will help our members to meet Meaningful Use guidelines while improving patient care at a value that we believe is one of the best in the industry.”

About NextGen Healthcare

NextGen Healthcare Information Systems, Inc., a wholly owned subsidiary of Quality Systems, Inc. (NASDAQ: QSII), provides integrated clinical, financial and connectivity solutions for ambulatory, inpatient and dental provider organizations. For more information, please visit www.nextgen.com and www.qsii.com. Follow NextGen Healthcare on Twitter at www.twitter.com/nextgen or Facebook at http://www.facebook.com/NextGenHealthcare.

About VHA

VHA Inc., based in Irving, Texas, is a national network of not-for-profit health care organizations that work together to drive maximum savings in the supply chain arena, set new levels of clinical performance and identify and implement best practices to improve operational efficiency and clinical outcomes. In 2009, VHA delivered record savings and value of $1.47 billion to members. Formed in 1977, through its 16 regional offices, VHA serves 1,400 hospitals and more than 30,000 non-acute care providers nationwide. VHA was ranked by Modern Healthcare as the 7th best place to work in health care in 2009.

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: volume and timing of systems sales and installations; length of sales cycles and installation process; the possibility that the products will not achieve market acceptance; seasonal patterns of sales and customer buying behavior; 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 Quality Systems’ 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
NextGen Healthcare
Kristy DelMuto, 215-657-7010
kdelmuto@nextgen.com

Source: NextGen Healthcare