NextGen Healthcare Expands Regional Extension Center Relationships and Critical Access Hospital Support

New Relationships with 10 RECs, Including CalHIPSO, and Rural Health Thought Leaders Reinforce the Company’s Commitment to Helping Providers Achieve Meaningful Use

HORSHAM, Pa. (March 22, 2011) – 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 a partnership with California Health Information Partnership and Services Organizations (CalHIPSO), the regional extension center (REC) for all of California except Los Angeles and Orange County, to help primary care providers across the state achieve Meaningful Use.

The agreement is part of a significant expansion of NextGen Healthcare’s REC partnership program. This program now encompasses 90 percent of RECs that have completed vendor selection, established group purchasing options or chosen to remain neutral. The program also offers expanded support for the underserved critical access hospital market.

“We are very pleased with the outcome of our EHR vendor negotiation process. We have been able to leverage the volume of providers who are joining the Regional Extension Center to ensure the best possible value and functionality for our members. We look forward to working with NextGen Healthcare and our other EHR vendor partners over the coming years,”

NextGen Healthcare was also recently named an EHR vendor partner by the Kansas Foundation for Medical Care, Inc., the REC in Kansas.

“Our committee of physicians and other regional stakeholders closely evaluated vendors not only for the features of their EHR technology, but for their willingness to work in the best interest of our physicians,” said Michael Aldridge, Vice President of Information Technology at the Kansas Foundation for Medical Care, Inc. “Completing this step in the process is a win for our REC, our EHR vendor partners and most importantly our providers. We’re very excited to move forward together to reach our Meaningful Use objectives and transform healthcare delivery in Kansas.”

Additional new relationships established between NextGen Healthcare and RECs include: eHealthConnecticut; CO-REC (Colorado); PA REACH East and PA REACH West (Pennsylvania); Ponce School of Medicine (Puerto Rico and U.S. Virgin Islands); the South Florida Regional Extension Center; and the West Virginia Regional HIT Extension Center.

The company is also partnering with providers in Maryland, where existing NextGen Healthcare client Frederick Memorial Hospital of Frederick, Md., will lead local adoption and Meaningful Use of EHRs as a state-designated management service organization, subcontracted by the Maryland REC. A HIMSS Stage 6 hospital, Frederick Memorial is highly regarded for its state-of-the-art facilities and application of technology in the delivery of advanced care.

Supporting the critical access hospital market, NextGen Healthcare is working closely with Terry J. Hill, Executive Director of the National Rural Health Resource Center, Duluth, Minn. Through activities such as speaking engagements and webinars, Hill and NextGen Healthcare are helping to educate RECs about the distinct needs of the rural health market and accelerate the RECs’ ability to assist critical access hospitals in earning stimulus incentives. The NRHRC is also a stakeholder in Key Health Alliance REACH, the regional extension center for Minnesota and North Dakota.

About NextGen Healthcare

NextGen Healthcare Information Systems, Inc., a wholly owned subsidiary of Quality Systems, Inc., 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.

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.

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Source: NextGen Healthcare