NextGen Healthcare, Inc. ( NXGN Quick Quote NXGN - Free Report) reached a milestone by enabling 2 million telehealth visits since March 2020. The company witnessed a nearly 5000% surge in telehealth visits from the last year as providers across the United States turned to the NextGen Virtual Visits to offer safe and convenient continuity of care amid the COVID-19 pandemic.
The NextGen Virtual Visits received high patient satisfaction scores of 9.1 out of 10 during the period of rapid growth. The technology immediately became a vital enabler of the patient-provider connection and a significant lifeline for patients with limited access to health services.
The achievement of the 2 million virtual visit milestone by NextGen Virtual Visits in just more than 18 months since March 2020 (three months into the acquisition of OTTO Health in December 2019), signifies an exponential rise in the company's scale and effectiveness of virtual care delivery in ambulatory settings. It is worth noting that NextGen's healthcare platform not only addresses near-term access needs but also presents opportunities to work with providers to determine how care will be delivered in the future.
A Few Words on NextGen Virtual Visits
The NextGen Virtual Visits integrates seamlessly into NextGen Enterprise Electronic Health Records (“EHR"). The industry-leading platform enables patients to receive safe, convenient, HIPAA-compliant access to care from nearly anywhere. It also enables providers to see their scheduled and on-demand patients through video, as part of their normal workflow. Providers can manage and refill medications; request images during intake and view during consultation; review lab results, x-rays and ultrasounds; exchange confidential documents; streamline access to specialties such as behavioral health; and minimize missed appointments through the platform.
Industry Prospects Per a report published in PR Newswire, the global telehealth market is set to witness a CAGR of 17.7% by 2026. Factors such as cost-effectiveness of teleconsultations, the reduction in outpatient department waiting time, ease of access, surge in population growth, the need to improve healthcare accessibility, shortage of physicians, advancements in telecommunications, government support, growing awareness and greater technology adoption are driving the market.
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Given the substantial market prospects, NextGen’s recent 2 million telehealth visit milestone seems strategic for the company.
In August 2021, NextGen announced that its NextGen Mobile application was being utilized by Neighborhood Health, a federally qualified health center, to deliver its “street medicine” program to the homeless residents of Nashville. The NextGen Mobile app is linked to the NextGen Enterprise Electronic Health Record. The app enables field doctors to quickly access a patient’s medical records, prescription lists, appointments and detailed care plans from previous providers.
In July 2021, the company stated that since the onset of the COVID-19 pandemic, Delaware Valley Community Health, Inc. (“DVCH”) has used the NextGen Population Health to identify and prioritize nearly 60,000 people in Philadelphia and Montgomery counties for COVID-19 vaccinations. The population health solution with geospatial mapping connects health data to specific zip codes, enabling DVCH to determine the better allocation of resources to fulfill the healthcare requirements of the communities. Further, data obtained from claims information assists DVCH in lowering admission and readmission rates at regional hospitals.
In June 2021, the company’s NextGen Behavioral Health Suite was stated to be utilized by Bowen Center, the largest community mental health center in Indiana, to offer mental health services and expand access to care for the underserved population. The NextGen Behavioral Health Suite provides the center with all the information related to a client’s overall well-being and treatment.
Share Price Performance
The stock has outperformed its
industry over the past year. It has rallied 10.9% against the industry’s 15.4% decline. Zacks Rank and Key Picks
Currently, NextGen carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader medical space are
IDEXX Laboratories, Inc. ( IDXX Quick Quote IDXX - Free Report) , Computer Programs and Systems, Inc. ( CPSI Quick Quote CPSI - Free Report) and Envista Holdings Corporation ( NVST Quick Quote NVST - 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.
IDEXX has a long-term earnings growth rate of 19.9%.
Computer Programs and Systems has a long-term earnings growth rate of 14.3%.
Envista Holdings has a long-term earnings growth rate of 27.4%.