NextGen Healthcare Information Systems is cutting some 150 employees, the Orange County (CA) Register reported, “as part of an operational realignment.”
NextGen (NSDAQ: NXGN), specializing in systems for electronic health records and based in Orange County, recently changed its corporate name from Quality Systems, to reflect its largest operating unit of the same name:. NextGen Healthcare is based in Horsham. But where the layoffs occurred was not specified. NextGen has over 2600 employees, of whom about 560 are based in Horsham, according to Linkedin.
NextGen, which reported $529 million in revenue in the fiscal year ended 3/31/19, has had negligible revenue growth over the past few years. This followed a period of high growth while heavy federal incentives for adopting EHR systems were in play.
NextGen’s market cap is $1.3 biillion
Some analysts are looking for a renewed growth period for the sector, which also includes privately held giant Epic Systems and Cerner, which has significant operations in Malvern (see Baron’s article).