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NextGen (NXGN)-Verato Tie Up to Improve Patient Insights

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NextGen Healthcare, Inc. (NXGN - Free Report) recently collaborated with Verato to integrate patient matching into the NextGen Health Data Hub (“HDH”) platform. Incorporation of NextGen’s HDH platform with Verato Universal MPI is expected to provide a more comprehensive insight into patient health.

It is noteworthy to mention that NextGen’s HDH platform (under the broader Connected Health Solutions business) is a completely redesigned data aggregation platform expected to meet the increasing market demand for robust data sharing, aggregation and community access.

The latest partnership is likely to aid NextGen in solidifying its foothold in the global Connected Health Solutions space.

Rationale Behind the Partnership

Patient-matching technology is increasingly becoming a vital component of healthcare due to care providers’ requirement of the complete picture of a patient’s medical history. This insight is needed to make precise clinical decisions, and consumers are increasingly expecting their care teams to have this information. The latest collaboration is expected to offer advanced identity management to address the complexities associated with patient matching.

Per NextGen’s management, the tie-up with Verato to incorporate identity management into its HDH ecosystem will likely lead to more effective patient matching. This, in turn, is expected to result in superior consumer experiences as their providers will have a better understanding of their entire healthcare journey.

Verato’s management believes that this partnership will help to confirm that providers have the necessary information to achieve a holistic view of patients with respect to timely, effective and safer care.

Industry Prospects

Per a report by Verified Market Research published on GlobeNewswire, the global connected healthcare market size was valued at $14,331.07 million in 2020 and is anticipated to reach $85,427.95 million by 2028 at a CAGR of approximately 25%. Factors like increasing penetration of the Internet in healthcare functions, growing demand for the Internet in healthcare operations at an affordable cost, and improvement in diagnostics, patient experience and disease management with lesser errors are expected to drive the market.

Given the market potential, NextGen’s recent collaboration is likely to provide a significant boost to its business globally.

Notable Developments

Last month, NextGen announced that its Enterprise Electronic Health Records, Enterprise Practice Management and Patient Experience Platform have been selected by Northern California-based community health center, Lake County Tribal Health, to improve patient outcomes and optimize provider workflow.

The same month, NextGen announced better-than-expected third-quarter fiscal 2022 results, where it saw solid uptick in its top line, along with strength in both revenue sources of the company. Robust increase in Subscription services' revenues in the quarter on the back of solid demand for NGE software-as-a-service and Virtual Visit solutions, was also registered.

In December 2021, NextGen announced that non-profit federally qualified health center, El Centro Family Health, has selected the NextGen Enterprise platform to serve its rapidly expanding community.

Price Performance

Shares of NextGen have gained 0.5% in the past year against the industry’s 55% fall. The S&P 500 index rose 12.2% in the same time frame.

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Zacks Rank & Key Picks

Currently, NextGen carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Baxter International Inc. (BAX - Free Report) , Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) .

Baxter, having a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 9.5%. BAX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 9.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Baxter has gained 4.4% against the industry’s 19.5% fall over the past year.

Allscripts has an estimated long-term growth rate of 11.1%. MDRX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 34.1%. It currently carries a Zacks Rank #2.

Allscripts has gained 24.9% against the industry’s 55% fall over the past year.

AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 20%. It currently has a Zacks Rank #2.

AMN Healthcare has gained 41.3% against the industry’s 59.8% fall over the past year.