NextGen (NXGN) Partners With Palmetto to Boost Patient Experience

DVA VEEV EHC

NextGen Healthcare, Inc. recently announced that Pametto Retina Center (“Palmetto”) has adopted NextGen Revenue Cycle Management (RCM) Services. Palmetto, which is currently using NextGen Enterprise Practice Management (PM) and NextGen Enterprise electronic health record (EHR), has adopted NextGen RCM Services for six locations in South Carolina. With the addition of NextGen RCM Services, Palmetto will reap the benefits of the integrated platform backed by expert managed services focused on boosting cashflow while lowering administrative burden.

Notably, NextGen RCM Services aids practices in preventing denials, enhance speed of collections, increase net collections, and lower days in accounts receivable, thereby improving overall patient experience.

NextGen is a major player in the U.S. RCM market and this announcement is likely to strengthen its position further in the same.

More on the News

For a healthy and smooth flowing retina practice, timely reimbursement for medications and surgeries is crucial. On the back of the expansion of Palmetto’s collaboration with NextGen, the former will be able to receive an end-to-end solution for its team.

Per management, with the continued evolution of the market, there is a higher demand for the combination of well-integrated clinical and financial workflows coupled with managed services.

This partnership will allow NextGen to cater to the needs of the changing healthcare environment and enhance Palmetto’s financial strength.

Market Prospects

Per a report by Grand View Research, the global revenue cycle management market was worth $261.8 billion in 2020 and is projected to witness a CAGR of 11.5% from 2021 to 2028. Growing need for optimization of organizational workflow, and increase in innovation in synchronized management software and systems are expected to drive market growth. Hence, the announcement is well-timed for NextGen.

Recent Developments

In May, NextGen announced favorable survey results, conducted by the Harris Poll, on patients availing telehealth services. The survey results reflect that more than half of the U.S. patient population has stated that the pandemic has significantly changed the way they would like to communicate with their doctors.

Also in May, the company announced the implementation of Application Programming Interface (“API”) technology to support the COVID-19 vaccine administration programs in California. NextGen is working with California’s Third-Party Administrator, Blue Shield, and has developed a high-fidelity connection between California’s My Turn program and EHRs in clinics across the state.

Price Performance

Shares of the Zacks Rank #4 (Sell) company have gained 56.6% in the past year compared with the industry’s growth of 4.7%.

Stocks to Consider

Some better-ranked stocks from the broader medical space are Veeva Systems Inc. (VEEV - Free Report) , DaVita Inc. (DVA - Free Report) and Encompass Health Corporation (EHC - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Veeva Systems’ long-term earnings growth rate is estimated at 15.8%.

DaVita’s long-term earnings growth rate is estimated at 14.4%.

Encompass Health’s long-term earnings growth rate is projected at 17.3%.

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