NextGen Releases Premier Data Capture Tools for Federal Pay-For-Performance Efforts.

HORSHAM, Pa. -- NextGen Healthcare Information Systems Inc., a subsidiary of Quality Systems, Inc. (Nasdaq: QSII), today announced it has released its data capture tools to help physician practices prepare for federal Pay-For-Performance (P4P) efforts - the Physicians Quality Reporting Initiative

The first of the two programs is the Physicians Quality Reporting Initiative (PQRI). Through this initiative, eligible physicians who successfully report a designated set of quality measures on claims for dates of service July 1 to December 31, 2007, earn a bonus payment, up to an allowable maximum amount of 1.5 percent of total charges for covered Medicare physician services. Participating physician practices must use data from bills submitted for each patient encounter, the capture of which is facilitated by the use of the NextGen EMR and NextGen EPM systems. The company has leveraged the capabilities of its integrated systems to support an accurate, comprehensive capture of all PQRI data elements.

Practices such as Med Allies (Hudson Valley Region of NY State), PMA Medical Specialists (Phoenixville, PA), and Adult Medicine of Marietta, P.C. (Marietta, GA) are currently working with NextGen to streamline PQRI data submissions. At the heart of this effort are NextGen's clinical templates, which include mapping to the Centers for Medicare & Medicaid Services (CMS) Doctor's Office Quality-Information Technology (DOQ-IT) quality indicators built into the NextGen Electronic Medical Records (EMR) disease management protocols. Completed in June 2006, this effort earned the Company DOQ-IT approval, which only six healthcare IT vendors hold today.

NextGen Healthcare has been developing this data capture methodology since the start of the DOQ-IT programs and has created a tool that allows providers using the NextGen EMR and NextGen Enterprise Practice Management (EPM) systems to gather the proper information in the normal course of clinical documentation. The physician can also enhance ongoing program compliance by developing data feedback reports (as part of the NextGen solution) for review in advance of governmental response.

"Being able to leverage the NextGen technology for participation in this P4P effort is very exciting," said Mark Foster, MD, of Hudson Valley Primary Care, one of the MedAllies affiliated offices. "We know of no other product available today that can offer the capability to capture data for this program right out of the clinical system. Without the NextGen solutions, we would have to create a separate program to go into our billing system and extract the data, which would have necessitated a great deal of extra work and unplanned expenses."

The second federal pay-for-performance endeavor is the Medicare Care Management Performance (MCMP) demonstration - a three-year, CMS pilot P4P program that aims to encourage physicians who treat chronically ill patients to adhere to specific quality-control guidelines. The program will compensate physicians based on the quality of care they provide to Medicare beneficiaries in 800 small- or medium-sized practices in Arkansas, California, Massachusetts, and Utah. During the first year, physicians will be paid for reporting data on quality measures. In subsequent years, the program will offer physicians annual performance-based bonuses of $10,000 per clinician (up to $50,000 per medical practice for submitting data), as well as up to an additional 25% reward enhancement for using a Certification Commission on Healthcare Information Technology (CCHIT)-certified automated tool. NextGen earned this designation in July 2006 as part of the first group of healthcare IT vendors to be certified.

The NextGen clinical templates for MCMP are being used today. Practices such as Physician Associates (Pasadena, CA), Primary Care Associates of North California, Canyon View Medical Group (Spanish Fork, UT), and Lynn Community Health Center (Lynn, MA) are participating, in order to provide examples for all clients on how the data can be collected.

"Through NextGen EMR, our providers are able to collect, securely transmit and easily review patient data," said Steven Davis, MD, medical director of Physician Associates. "We feel this will provide a considerable advantage as we strive to perform to the optimum performance levels identified in the program."

"NextGen has been committed to P4P since efforts first started with CMS in 2004," said Charles Jarvis, assistant vice president, healthcare industry services and legislative affairs for NextGen Healthcare, who is charged with coordinating NextGen's efforts in this area. "This effort continues to demonstrate our industry leading pay-for-performance solution to help practices participate effectively in these programs. We appreciate our clients working with us to develop these tools."

About NextGen Healthcare

NextGen Healthcare Information Systems, Inc. a wholly owned subsidiary of Quality Systems, Inc.(NASDAQ: QSII), develops and markets computer-based practice management and electronic medical records systems for medical group practices. For more information about NextGen, please visit www.nextgen.com and www.qsii.com.

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