2. 2
SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS:
Statements made during this presentation, the proxy statements filed with the Securities and
Exchange Commission (“Commission”), communications to shareholders, press releases and
oral statements made by our representatives that are not historical in nature, or that state our
or management’s intentions, hopes, beliefs, expectations or predictions of the future, may
constitute “forward-looking statements” within the meaning of Section 21E of the Securities
and Exchange Act of 1934, as amended. Forward-looking statements can often be identified
by the use of forward-looking terminology, such as “could,” “should,” “will,” “will be,” “will lead,”
“will assist,” “intended,” “continue,” “believe,” “may,” “expect,” “hope,” “anticipate,” “goal,”
“forecast,” “plan,” or “estimate” or variations thereof or similar expressions. Forward-looking
statements are not guarantees of future performance.
Forward-looking statements involve risks, uncertainties and assumptions. It is important to
note that any such performance and actual results, financial condition or business, could
differ materially from those expressed in such forward-looking statements. Factors that could
cause or contribute to such differences include, but are not limited to, the risk factors
discussed under “Risk Factors” in our Annual Report on Form 10-K for fiscal year ended
March 31, 2008, as well as factors discussed elsewhere in other reports and documents we
file with the Commission. Other unforeseen factors not identified herein could also have such
an effect. We undertake no obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events or changes in future
operating results, financial condition or business over time unless required by law. Interested
persons are urged to review the risks described under “Risk Factors” and in “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in our Annual
Report on Form 10-K for fiscal year ended March 31, 2008, as well as in our other public
disclosures and filings with the Commission.
2
Safe Harbor Provisions
3. 3
Company Overview
• Quality Systems and its NextGen Healthcare Information
Systems subsidiary develop and provide a broad range of
computer-based business applications for U.S. medical and
dental groups practices. These include practice
management, electronic health records, revenue cycle
management and e-business applications.
– Revenue primarily derived from physician group businesses that
utilize the company’s high functionality practice management suites
– Focused is on growing organically with a strong emphasis on
reinvestment in new product and service development initiatives
– Acquisitions of complimentary business lines also contribute to
growth
3
4. 4
December 31, 2009 TTM
Revenue: $279.1mm
EPS: $1.63
TTM Revenue: $262.9mm (94% of total)
Markets Served:
Physicians
• Practice Management
• EHR
• EDI
• Revenue Cycle Management
Locations:
Horsham, PA; Atlanta, GA; St. Louis,
MO; Dallas, TX; Hunt Valley, MD;
Austin, TX
Employees (2/11/10): 1,307
TTM Revenue: $16.2mm (6% of total)
Markets Served: Dentists
• Practice Management
• EPR
• EDI
Locations: Irvine, CA; Santa Ana, CA
Employees (12/31/09): 74
4
Quality Systems Today
6. 6
Opus Healthcare Solutions
• Acquired February 11, 2010
• Based in Austin, TX;
– $14 million in Revenue
– $3.5 million EBITDA
– 20 Hospital Customers
• Accretive in FY 2011
• Small Hospital Market
– 100 Beds or Less
– 1300 in U.S.
• CCHIT Certified
7. 7
Experienced Management Team
7
Title Years of Experience
Steven T. Plochocki 36
Chief Executive Officer, Quality Systems, Inc.
Patrick B. Cline 29
President, Quality Systems, Inc.
Philip N. Kaplan 21
Chief Operating Officer, Quality Systems, Inc.
Paul A. Holt 14
Chief Financial Officer, Quality Systems, Inc.
Scott Decker 13
President, NextGen Software
Donn Neufeld 29
Executive Vice President, EDI & Dental
Fred Neufeld 31
Executive Vice President and General Manager, NextGen Healthcare
Monte L. Sandler 16
Executive Vice President, NextGen Practice Solutions, NextGen Healthcare
9. 9
Product / Market Dynamics
Penetration Opportunity
Growth
Clinical
Dental
Dental PM
MPM
EHR
EDI
High Penetration Low Penetration
LowGrowthHighGrowth
9
RCM
10. 10
New vs. Recurring Revenue
QSI - Dental
New
25%
Recurring
75%
NextGen
New
44%
Recurring
56%
Company
New
37%
Recurring
63%
10
11. 11
Current State of Adoption
Acute CareAmbulatory Care
Small
Practices
Large
Practices
Hospital
Outpatient
Depts
Inpatient
Critical
Care
90% Paper
5% Partial
5% Complete
10% Partial
10% Complete
80% Paper
50% Paper
49% Partial
1% Complete
Source: The Coker Group – 8/1/08
11
12. 12
• American Recovery and Re-investment Act (ARRA) – 2/09
– Over $60 billion in incentive and grant money to stimulate HIT adoption.
– Stringent rules for providers to qualify for funds known as “meaningful use”
– First time that state based Medicaid programs and Departments of Health have
become major purchasers of health care information technology
– Regional Extension Center initiative promoting large scale HIT adoption
• “Stark” law exception stimulating health system ambulatory strategies
• Pay-for-performance (P4P) programs, patient centered medical home, and other quality
initiatives
• Consumerism and Personal Health Records (PHR)
• Interoperability and community-based data exchange
• Market mindset has moved to “when” not “if”
• IT Certification Process- CCHIT (Government-supported Certification Commission for
Healthcare Information Technology, and other certifying bodies)
Market Drivers
12
13. 13
To improve patient care and reduce healthcare costs by
providing industry leading systems and services while
achieving the Gold Standard of customer satisfaction.
NextGen Healthcare: Our Mission
13
14. 14
• Integrated Solutions
• Flexibility overcomes physician acceptance issues
• 26+ specialty-specific clinical knowledge bases
• Market leader in Pay-for-performance (P4P) and Patient
Centered Medical Home (PCMH)
• Proven Industry Leadership (CCHIT certification)
• Proven Customer Results
• Experienced Management Team
• Financial strength vs. competition
Competitive Advantages
15. 15
Competitive Advantages
Ranking
10-24
Physicians Ranking
25-99
Physicians Ranking
100+
Physicians
1 NextGen Healthcare 1 NextGen Healthcare 1 NextGen Healthcare
2 Medical Communications 2 Medical Communications 2 Epic
3 eClinicalWorks 3 eClinicalWorks 3 eClinicalWorks
4 Practice Partner 4 Practice Partner 4 Sage Software
5 GEMMS 5 GE Centricity 5 Allscripts Enterprise
6 Pulse Systems 6 Pulse Systems 6 GE Healthcare Flowcast
7 E-MDs 7 Allscripts Enterprise 7 N/A
8 Greenway Medical 8 Greenway Medical 8 N/A
Functionality Assessment of EHR Solutions
15
Source: The AC Group – 12/09
20. 20
Third-Party Recognition
• Forbes ranked QSI one of the 200 Best Small Companies for the ninth
consecutive year – #3 in 2009
• Forbes named QSI #23 in 2009 of 25 Fastest Growing Technology Companies
• Fortune ranked QSI #52 in 2008 list of 100 Fastest Growing Small Public
Companies
• Business Week named QSI to 100 Hot Growth Companies list #19 in 2007
• 2009 Awards
• Innovation Award Winners - MS-HUG
Clinical Care – NextGen EHR
• Award Partner: Elmhurst Clinic, Elmhurst Memorial Healthcare
• 2008 Awards
• Innovation Award Winners - MS-HUG
Disease Surveillance – NextGen EMR
• Award Partner: St. Joseph Family Medicine Residency, Medical College
of Wisconsin
• Finalist - MS-HUG Innovation Award
Outcomes Reporting – NextGen EMR/EPM
• Award Partner: Medical Clinic of North Texas
20
21. 21
Why Quality Systems?
Proven Growth
and Profitability
• Proven track record of organic growth and profitability
– Five-year revenue CAGR of 29% and Net Income CAGR of 37%
– Most profitable company in market segment with 30%+ EBITDA margins
• Self-funded, highly profitable growth strategy
– Recurring revenue base provides stable cash flow
Substantial Customer Base
• Over 2,200 group practices representing 58,000 physicians and dentists
• Substantial cross-selling opportunities
• Relationships with key health care institutions
Leading Suite of HCIT
Products
• Scalable technology platform with significant adoption in mid/large physician
practice
Positive HCIT Industry
Trends
• Increasing focus on technology benefits in healthcare
• Stark law relaxation
• Pay for Performance initiatives
• Economic Stimulus Package/Obama Plan from U.S. Government
Experienced Management
Team
• Extensive years of experience and working collaboratively as a management
team
Robust Sales Pipeline • $113 million NextGen Healthcare sales pipeline @ 12/31/09
21
Editor's Notes
As testimony to our position in the industry, one of the most recognized sources of EHR company comparisons, the AC Group, whose study is comprised of over 5,000 functional questions, has consistently ranked NG as the #1 product.