Quality Systems Inc., comprised of the QSI division and its NextGen Healthcare Information Systems subsidiary, develops and markets healthcare information systems that automate medical and dental practices, networks of practices such as physician hospital organizations (PHO's) and management service organizations (MSO's), ambulatory care centers, community health centers, and medical and dental schools. The QSI division, co-located with the company's corporate headquarters in
Irvine, California, currently focuses on developing, marketing, and supporting software suites sold to dental and certain niche medical practices. The QSI division also provides a web-based application called QSINet. QSI also develops, markets, and manages the electronic data interchange (EDI)/connectivity applications for both divisions. These products are intended to automate a number of manual, often paper-based or telephony intensive communications between patients and/or providers and/or payors. The NextGen division, with headquarters in Horsham, Pennsylvania and a second significant location in Atlanta, Georgia, focuses principally on developing and marketing products and services to medical practices. This division also maintains an Internet-based consumer health portal, NextMD.com. Both divisions develop and market practice management software, which is designed to automate and streamline a number of the administrative functions required for operating a medical or dental practice. Both divisions also develop and market clinical software that automates the patient record and enhances patient-provider interactions. Furthermore, each division offers comprehensive hardware and software installation services, maintenance and support services, and system training services. Based on division, NextGen and QSI contributed 89% and 11% to total fiscal 2007 revenue, respectively.
The company divides revenue into two categories. System sales are one category. Revenue in this category includes software license fees, third party hardware and software, and supplies, implementation, and training services related to purchase of the company's software systems. System sales contributed 52% to total revenue in fiscal 2007. Maintenance, EDI, and other services is the other category. Maintenance, EDI, and other services contributed 48% to total revenue in fiscal 2007.