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NextGen (NXGN) Expands Partnership With Large Urology Group

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NextGen Healthcare, Inc. announced that a large urology group — Associated Urologists of North Carolina ("AUNC") — already using its Enterprise Practice Management, has decided to expand implementation of NextGen’s technologies to include Enterprise EHR. The AUNC is a group of more than 20 independent urology providers serving communities throughout North Carolina.

The group decided to include Enterprise EHR for consolidating disparate solutions, stabilizing its health IT environment and gaining efficiencies. As part of the expanded use of NextGen’s technologies, AUNC will also implement NextGen Urology Suite to seamlessly incorporate the urology-specific workflows within the NextGen Enterprise EHR.

The AUNC is also leveraging NextGen’s managed cloud services offered through Amazon Web Services. It has also adopted NextGen Virtual Visits and NextGen Mobile with NextGen Remote Scribe Services.

With the latest adoption, NextGen is likely to solidify its foothold in the Urology treatment space across North Carolina.

Industry Prospects 

 Per a report by MarketsandMarkets, the global healthcare interoperability solutions market was estimated to be $2.9 billion in 2021. It is anticipated to reach $5.7 billion by 2026 at a CAGR of 13.9%. Factors like the growing need to reduce healthcare costs and the rapid adoption of the electronic health record and other healthcare IT solutions are likely to drive the market.

Given the market potential, the latest deal of NextGen’s product is expected to significantly boost the company’s business in North Carolina.

Notable Developments

Last month, NextGen Behavioral Health Suite was chosen by CA-based CHE Behavioral Health to support its growing network. This suite is a comprehensive solution that provides access to a single, integrated physical and behavioral health record to treat a patient.

In April, NextGen announced that Mindful Care had selected NextGen Behavioral Health Suite to support its short and long-term goals.

In March, the company announced the launch of Mirth Cloud Connect, a cloud-based solution that provides interoperability as a managed solution, at the ViVE 2023. Mirth Cloud Connect is built upon NextGen’s popular Mirth Connect.

Price Performance

Shares of the company have lost 14.3% year to date against the industry’s 53.7% growth. The S&P 500 Index gained 14.8% during the same time frame.

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Zacks Rank & Stocks to Consider

NextGen currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are CONMED (CNMD - Free Report) , Merit Medical Systems (MMSI - Free Report) and Dentsply Sirona (XRAY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CONMED has an estimated long-term growth rate of 19.4%. The company’s earnings surpassed estimates in two of the trailing four quarters, missed once and met in another, delivering a negative average surprise of 10.54%.

CNMD’s shares haverisen 49.5% year to date compared with the industry’s 8.6% growth.

Merit Medical Systems has an estimated long-term growth rate of 11%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.22%.

The company’s shares have risen 16.5% year to date compared with the industry’s 8.6% growth.

Dentsply Sirona has an estimated long-term growth rate of 9.1%. XRAY delivered a trailing four-quarter average earnings surprise of 10.47%.

The company’s shares have risen 22.7% year to date compared with the industry’s 8.6% growth.

See More Zacks Research for These Tickers

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