NextGen Healthcare, Inc. NXGN recently announced the integration of Appriss Health prescription monitoring and tracking analytics into NextGen Office – the company’s cloud-based, small practice electronic health record (EHR) solution. With this amalgamation, NextGen aims to detect, prevent and manage substance use disorder more effectively and efficiently.
In fact, this integration is likely to provide a significant boost to NextGen’s EHR system.
A Glimpse into the U.S. Opioid Crisis
Notably, an opioid epidemic is plaguing the United States and has been traumatizing families. According to a report by National Institute of Drug Abuse, more than 130 people in the United States lose their lives owing to opioid overdose. The misuse of and addiction to opioids has become a national crisis impacting public health, and social and economic welfare.
Going by the projections of the Centers for Disease Control and Prevention, the total economic impact of prescription opioid misuse itself in the United States is $78.5 billion a year and this includes the cost of healthcare, addiction treatment, lost productivity and even criminal justice involvement.
The integration will enable prevention of illegal acquisition of controlled substances from multiple sources through enhanced prescription capabilities.
The providers will now be equipped with advanced capabilities to effectively prescribe and dispense controlled substances. The technology will help in maximization of patient health and safety by checking state records for controlled substances that have been prescribed by multiple providers for an individual patient. This will be available within one system at the point of care.
Through this deal, both NextGen Office and Appriss Health will ensure that the smaller providers receive the critical tools and information necessary to bolster patient outcomes.
EHR Gaining Popularity in Healthcare
The latest trend of EHR services has been gaining prominence in the U.S. MedTech space. NextGen’s NextGen Enterprise and NextGen Office (formerly, MediTouch) software technology and solutions accommodate the unique needs of ambulatory practices of all sizes. These EHR solutions cater to demands like Merit-Based Incentive Payment System (MIPS) requirements, population health needs, and other value-based care initiatives.
Per Transparency Market Research, the global EHR market is estimated to reach $38.29 billion by 2025 at a CAGR of 5.7%. Reports suggest that MedTech companies with a strong exposure to big data automated EHRs will excel in terms of operations and margins.
In this regard, it is imperative to mention that Cerner Corporation CERN has been dominating the headlines, courtesy of efforts to digitize EHR systems.
According to a report by MarketsandMarkets, the healthcare IT market is anticipated to reach $390.7 billion by 2024 from $187.6 billion in 2019 at a CAGR of 15.8% during the forecast period. The increase in the volume of patient data, rise in technological know-how, and demand for quick and efficient healthcare processes and systems are fueling the demand for HCIT solutions.
Year to date, this Zacks Rank #2 (Buy) stock has advanced 31.2% compared with the industry’s and the S&P 500 Index’s growth of 25.3% and 18.4%, respectively.
Other Key Picks
Investors interested in some other top-ranked stocks from the broader medical space can consider Penumbra, Inc. PEN and NuVasive, Inc. NUVA, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Penumbra has a long-term earnings growth rate of 21.5%.
NuVasive has a long-term earnings growth rate of 11.9%.
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