NextGen (NXGN) Riding on the Success of Cloud-Based Solution
NextGen Healthcare’s NXGN innovative cloud-based healthcare technology solutions is empowering its business. The company has seen a strong demand for its NextGen solutions that include Hospitals, EHR and PM.
Earlier this month, Compass Health Network, a non-profit healthcare organization chose NextGen Behavioral Health Suite to provide whole-person care. The organization offers a full continuum of services, including primary care, behavioral health and oral health to patients across 84 locations in Missouri. In January, NextGen announced that Eye Health America had added the NextGen Patient Experience Platform and NextGen Pay (powered by InstaMed) to enhance patient experience.
These deals are likely to solidify NextGen’s foothold in the global electronic health record (EHR) space, thereby boosting its Clinical Care Solutions business in the broader Enterprise domain.
Last month, Nextgen announced its results for third-quarter fiscal 2023. Robust results, along with the year-over-year uptick in the top line, buoy optimism. Strength in recurring revenues and robust increases in Subscription services, Managed services, and Transactional and data services were encouraging. The improvement in Other non-recurring services revenues was also promising.
Per a report by Allied Market Research, the global EHR market was valued at $30,550.3 million in 2020 and is anticipated to reach $63,848.6 million by 2030, at a CAGR of 7.7%. Factors like technological advancements in the healthcare sector and EHR’s capabilities to manage and record patient data, as demonstrated during the pandemic, are likely to drive the market.
Given the market potential, the latest adoption of NextGen’s product is expected to significantly boost its business on a global scale.
In January, NextGen reported third-quarter fiscal 2023 results, where it saw a solid uptick in the top line and strength in recurring revenues. Robust increases in Subscription services, Managed services, and Transactional and data services revenues buoys optimism.
Comparison with Peers
Last month, on its fourth-quarter earnings call, 10x Genomics TXG announced that it has started shipping of its recently launched Xenium platform for in situ analysis during the quarter. The new system will boost performance by providing better data quality, workflow and throughput through highly differentiated chemistry, hardware and software.
10x Genomics’ revenues were up 8.8% during the fourth quarter, on the back of continued adoption of Chromium X Series instruments and strong demand for Visium CytAssist. TXG’s quarterly loss also improved year over year during the fourth quarter.
Health Catalyst HCAT, a leading provider of data and analytics technology and services to healthcare organizations, has seen strong adoption of its services. HCAT’s revenues during the fourth quarter gained 7% on the back of strong demand for its technology services. Loss also narrowed 27% year over year.
Last month, Health Catalyst signed three new multi-year strategic partnership deals, wherein it will offer its enterprise analytics platform to Bryan Health, Deaconess Health System and INTEGRIS Health. These deals represent a boost in subscriptions for Health Catalyst, going forward.
Tabula Rasa HealthCare TRHC, another key player in the EHR space and NextGen’s peer, announced a cooperation agreement with Indaba Capital Management, L.P. in September 2022.
TRHC, in August 2022, announced that a new peer-reviewed study from Tabula Rasa showed that pharmacist recommendations (driven by its unique medication decision support system, MedWise Science) can aid prescribers in identifying and reducing the levels of potentially inappropriate medications among older adults. This, in turn, will reduce the risk of negative cognitive and physical outcomes.
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