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NextGen Healthcare
NextGen Healthcare
NextGen Healthcare
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NextGen Healthcare, Inc. is an American software and services company headquartered in Atlanta, Georgia. The company develops and sells electronic health record (EHR) software and practice management systems to the healthcare industry, as part of a range of software, services and analytics solutions for medical and dental practices. On September 7, 2018, Quality Systems, Inc. changed its name to NextGen Healthcare, Inc. and on September 10, their stock ticker symbol changed to NASDAQ: NXGN.[2]

Key Information

In 2023, private equity firm Thoma Bravo acquired NextGen Healthcare for $1.8 billion.[3]

History

[edit]

Quality Systems, Inc. (QSI)[4] was formed by Sheldon Razin[5] in 1973[6] in Corona, California, as a dental software company. Sheldon started QSI in his home study with $2,000.[7] It went on to become incorporated in April 1974.[8]

In December 1982, QSI went public through NASDAQ under the symbol QSII.[8]

In 1994, Clinitec was formed by Pat Cline and Bryan Rosenberger to sell software for converting paper medical records into electronic medical records. After acquiring a smaller interest in 1995, QSI purchased the remaining equity of Clinitec in 1996.[9]

In May 1997, QSI purchased Micromed, which provided front- and back office practice management software. In April 1999, QSI combined Clinitec and MicroMed into one operating division to create the MicroMed division,[10] which was later renamed NextGen Healthcare Information Systems division in 2001.

In 2008, NextGen Healthcare then acquired HSI[11] of St. Louis, Missouri, and Practice Management Partners of Hunt Valley, Maryland, to expand its billing services and revenue cycle consulting division.

In 2009, NextGen Healthcare updated the name of its electronic medical record system from NextGen EMR to NextGen EHR.[12]

In February 2010, Quality Systems entered into an agreement to acquire Opus Healthcare Solutions, Inc. and announced it would be integrated with the assets of Sphere Health Systems, Inc., which were acquired by QSI in August 2009. Both software and services companies for the inpatient market would become part of NextGen Healthcare.[13]

Pat Cline retired from NextGen in 2011, and started up a new health informatics venture: Lightbeam Health Solutions.[14]

In 2013, Quality Systems acquired Mirth Corporation, developers of Mirth Connect, a popular open-source integration engine used by thousands of healthcare entities.[15]

In 2013, NextGen was ranked as one of the Top 20 Most Popular EHR Software[16] Solutions on the market by Capterra.[17]

In 2014, NextGen earned KLAS Top Performance Honors for Ambulatory RCM Services.[18]

On October 30, 2015, Quality Systems announced an agreement to acquire HealthFusion for $165 million-plus potential additional contingent consideration of up to $25 million. Based in San Diego, Calif., HealthFusion was a privately held developer of web-based software for physicians, hospitals and medical billing services.[19]

In October 2019, NextGen Healthcare acquired Topaz Information Solutions.[20]

In November 2019, NextGen Healthcare announced the acquisition of Medfusion and completed the acquisition in December 2019.[21]

In December 2019, NextGen Healthcare announced an agreement to acquire OTTO Health[22]

In September 2023, Thoma Bravo announced it would take NextGen Healthcare private for a total enterprise value of $1.8 billion,[23] which was finalized couple of months later.[3]

Products and services

[edit]

NextGen Healthcare's products include:

  • NextGen Enterprise Ambulatory EHR (Electronic Health Record). The NextGen EHR is primarily a single, all-encompassing database that combines user management, EHR and EPM. This database can run under MS SQL Server 2005, 2008 or Oracle.
  • NextGen Practice Management. Shares the same database backend as the core EHR product.
  • NextGen Office
  • NextGen Patient Portal
  • NextGen Health Data Hub
  • NextGen Health Quality Measures
  • NextGen Advanced Auditing
  • NextGen Mobile
  • NextGen Rosetta interface platform
  • Mirth Connect acquired September 2013 [24]

NextGen Healthcare's services include:

  • Revenue Cycle Management (RCM)
  • NextGen EDI Services
  • NextGuard Data Protection

Former products

[edit]
  • NextGen Inpatient Clinicals acquired by Quadramed in 2015 [25]
  • NextGen Inpatient Financials acquired by Quadramed in 2015 [25]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

NextGen Healthcare

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from Grokipedia
NextGen Healthcare, Inc. is an American healthcare technology specializing in cloud-based (EHR) and practice management (PM) software solutions tailored for and specialty medical practices. Founded in 1974 as Quality Systems, Inc. by Sheldon Razin in , the initially operated as a computer consulting firm before pivoting to healthcare in 1996 through the acquisition of Clinitec Software. It went public on the in 1982 under the ticker QSII and launched its flagship integrated EHR and PM applications in 2001 by merging technologies from Clinitec and Micromed. Over the decades, NextGen Healthcare has expanded through strategic acquisitions, including Micromed in 1997 for practice management capabilities, Topaz Information Solutions and Medfusion, Inc. in 2019 for patient engagement and enhancements, OTTO Health in 2019 for , and TSI Healthcare in 2022 to bolster specialty-specific solutions. In 2023, the company was acquired by private equity firm , transitioning to private ownership after nearly four decades as a public entity. In 2025, Madison Dearborn Partners acquired a significant ownership position, partnering with . Headquartered in , Georgia, NextGen employs over 2,000 people and generated approximately $690 million in trailing twelve-month revenue as of November 2025. The company's core offerings include NextGen Office, an award-winning EHR suite for small practices, and NextGen Enterprise, a scalable platform for mid-sized to large organizations, both hosted on (AWS) for secure cloud deployment. These solutions support over 40 medical specialties—such as , behavioral health, and —with customizable templates, AI-powered ambient listening for documentation, virtual visits, patient self-scheduling, analytics, and features to improve clinical workflows and financial performance. NextGen Healthcare emphasizes client-driven innovation to reimagine , saving providers up to 2.5 hours per day through automated tools while prioritizing and value-based care outcomes. In 2025, the company received recognitions including ' Best Midsize Employer for the fourth consecutive year and Newsweek's Most Trustworthy Companies in America.

Company Overview

Founding and Headquarters

NextGen Healthcare, originally founded as Quality Systems, Inc. (QSI), traces its origins to 1974 when Sheldon Razin established the company in . Razin, a with a background in healthcare IT, initially positioned QSI as a computer consulting firm that developed the first turn-key customizable practice management software tailored for dental group practices. This early emphasis on automating administrative tasks marked QSI's entry into the nascent market for healthcare information systems, targeting efficiency in small-scale ambulatory settings. From its inception, QSI's core objective was to deliver affordable, practical IT solutions to support the operational needs of small to mid-sized medical and dental practices, enabling them to manage patient records and billing without the complexity of custom-built systems. The company's operations remained centered in the United States, with a longstanding dedication to the ambulatory care sector, where it sought to bridge the gap between emerging technology and everyday clinical workflows. Over time, QSI evolved into NextGen Healthcare, reflecting its expanded role in electronic health records, but its underwent a significant relocation. Incorporated as a corporation in 1979, the company maintained its principal offices in Irvine until recent years, when it shifted its executive to , Georgia, at 3525 Piedmont Road NE, Building 6, Suite 700. This move aligned with NextGen's growth strategy while preserving its U.S.-focused heritage.

Business Focus and Mission

NextGen Healthcare primarily focuses on delivering integrated (IT) solutions tailored to and specialty medical practices, emphasizing clinical, financial, and operational efficiency to support providers in navigating complex care and payment environments. The company targets small to large practices across more than 40 clinical specialties , including single-specialty groups, multi-specialty organizations, and federally qualified health centers (FQHCs), serving over 100,000 providers and facilitating more than 65 million interactions annually. Since its origins in 1974 as part of Quality Systems, Inc., NextGen Healthcare has pursued a mission to reimagine through innovative electronic health records (EHR), practice management, and data-driven solutions, evolving to empower physician practices amid rapidly changing healthcare models. In recent years, following its acquisition by in 2023, the company refined its to "better healthcare outcomes for all," aligning with the Quintuple Aim framework that encompasses improved clinical and financial outcomes, enhanced and provider experiences, , and . In June 2025, acquired a significant ownership stake alongside to support further growth and innovation. This strategic direction prioritizes AI-powered, cloud-based platforms to simplify workflows, optimize , and promote value-based care, enabling practices to focus on -centered delivery rather than administrative burdens. Core objectives include accelerating provider adoption of modern IT tools to achieve measurable improvements in efficiency and outcomes, with a commitment to supporting over 10,000 medical groups in transitioning to integrated, scalable systems that address the demands of specialty-specific care. By concentrating on the sector, which represents a significant portion of U.S. healthcare delivery, NextGen aims to foster healthier communities through that enhances access, reduces costs, and elevates care quality across diverse practice sizes and specialties.

History

Early Years and Initial Growth

Quality Systems, Inc. (QSI) was founded in 1974 by Sheldon Razin in , initially focusing on developing software solutions to automate administrative tasks in medical and dental practices. The company's first installation occurred in 1976, marking the launch of basic practice management software tailored for physician offices and dental clinics, which handled scheduling, billing, and records on early computer systems. By 1979, QSI had incorporated managed-care features into its offerings, anticipating the shift toward capitated health plans and enabling more efficient reimbursement processing for small practices. Throughout the 1980s, QSI expanded its character-based practice management systems, becoming a leader in affordable, turn-key solutions for settings, and went public on the in 1982 under the symbol QSII. This period saw steady growth as the company served thousands of users, with installations reaching over 5,000 dental practices by the mid-1990s. In the 1990s, QSI began developing early (EHR) prototypes through strategic partnerships, notably acquiring Clinitec International in , which provided tools to convert paper medical records into digital formats and introduced the NextGen Patient Records System for physician documentation. The passage of the Portability and Accountability Act (HIPAA) in further propelled this evolution, as the legislation mandated secure electronic transactions and privacy standards, prompting QSI to enhance its systems for compliance with emerging regulations on . A pivotal milestone came in 1997 with the acquisition of MicroMed Healthcare Systems, which bolstered QSI's front- and back-office practice management capabilities specifically for physician practices. By 2001, QSI integrated these assets to form NextGen Healthcare Information Systems, launching comprehensive EHR and practice management applications. The 's entry into revenue cycle management solidified in 2008 through the acquisition of Healthcare Strategic Initiatives (HSI), a St. Louis-based firm, for $15.4 million, which added advanced billing and financial tools to support full-spectrum practice operations. This move marked QSI's transition toward integrated financial solutions amid growing demands for regulatory adherence and efficiency in healthcare administration.

Expansion Through Acquisitions and Rebranding

During the early 2010s, Quality Systems, Inc. (QSI), the parent company of NextGen Healthcare, pursued strategic acquisitions to broaden its (EHR) offerings and enter the inpatient market, particularly for small community hospitals. In August 2009, QSI acquired the assets of Sphere Health Systems, Inc., which provided the SPIRIT ENTERPRISE designed for facilities with fewer than 100 beds, enabling integrated patient management, clinical decision support, and financial functionalities to complement NextGen's ambulatory-focused solutions. This move enhanced EHR by bridging ambulatory and inpatient data flows. Following in February 2010, QSI acquired Opus Healthcare Solutions, Inc., whose web-based, CCHIT-certified OpusClinical Suite offered inpatient EHR capabilities including computerized physician order entry (CPOE), clinical documentation, and decision support tools accessible via browsers or smartphones. Both acquisitions were integrated under NextGen Healthcare Information Systems, Inc., expanding specialty modules for hospital workflows and targeting underserved small-hospital segments while supporting standards. Building on this growth, QSI continued to diversify through additional acquisitions that bolstered technological capabilities. In 2013, the company acquired Mirth Corporation, a developer of integration engines, to enable seamless data exchange and true across healthcare systems. By 2016, QSI acquired HealthFusion Holdings, Inc., including its MediTouch platform, marking a significant in cloud-based EHR and practice management solutions tailored for small , which reduced on-premise needs and improved . The expansion continued with further acquisitions: in 2017, EagleDream Health for and Entrada for mobile clinical documentation; in 2018, Inforth Technologies for specialty-focused clinical content; in 2019, Topaz Information Solutions for patient engagement, Medfusion, Inc. for patient portal and , and OTTO Health for enhancements; and in 2022, TSI Healthcare to strengthen specialty-specific solutions. In September 2018, QSI underwent a major to align its more closely with its flagship NextGen products, changing its name to NextGen Healthcare, Inc., effective September 7, 2018, accompanied by a shift from QSII to NXGN on September 10. This reflected nearly two decades of market recognition for NextGen solutions and emphasized a unified focus on healthcare technology. Concurrently, NextGen invested in cloud technologies and compliance with the for Economic and Clinical Health (HITECH) Act of 2009, certifying its and inpatient EHR suites for Meaningful Use criteria to qualify providers for federal incentives under the American Recovery and Reinvestment Act (ARRA). These efforts, including educational resources and product updates launched in 2010, positioned NextGen to support EHR adoption amid HITECH's push for meaningful use, with certifications ensuring alignment with stages of clinical quality measures and reimbursement requirements.

Recent Ownership Changes and Developments

In 2023, NextGen Healthcare underwent a significant ownership change when it was acquired by private equity firm in a deal valued at $1.8 billion. The transaction, announced on September 6, 2023, and completed on November 10, 2023, involved shareholders receiving $23.95 per share in cash, representing a 46.4% premium to the company's closing stock price prior to the announcement. As a result, NextGen transitioned from a publicly traded company on the to a privately held entity, allowing for greater strategic flexibility in the evolving healthcare IT landscape. In 2024, NextGen's Behavioral Health Suite was ranked #1 in the Best in KLAS report for behavioral health EHR. This privatization set the stage for further investment in 2025, when (MDP) acquired a significant ownership stake in NextGen alongside . The agreement, signed on May 2, 2025, and closed in the second quarter, was formally announced on June 6, 2025, as a to accelerate growth and innovation in ambulatory healthcare . MDP's involvement, as a leading focused on healthcare, aimed to provide additional capital and expertise to enhance NextGen's product offerings and market expansion post-privatization. Concurrently with the MDP partnership, NextGen announced a planned succession to align with its renewed focus on . On October 1, 2025, Srinivas (Sri) Velamoor, previously the company's president and , officially assumed the role of president and chief executive officer, succeeding David Sides in a seamless transition. Under Velamoor's , NextGen has emphasized advancing IT solutions, leveraging the private ownership structure to drive technological advancements and operational efficiencies in healthcare delivery.

Products and Services

Electronic Health Records Solutions

NextGen Healthcare provides a cloud-based electronic health records (EHR) platform specifically designed for ambulatory practices, enabling seamless access to patient data from any location while ensuring scalability for practices of varying sizes. This platform, known as NextGen Office and NextGen Enterprise EHR, supports compliance with Promoting Interoperability requirements under the Merit-based Incentive Payment System (MIPS). NextGen Office is certified under the Office of the National Coordinator for Health Information Technology (ONC) 2015 Edition Cures Update, while NextGen Enterprise has achieved HTI-1 compliance as of August 2025. The EHR emphasizes interoperable clinical workflows that facilitate the exchange of patient information across systems, reducing documentation redundancies and enhancing care coordination among providers. Key components include secure patient portals that allow individuals to view their health records, schedule appointments, and communicate with providers, alongside integrated e-prescribing capabilities compliant with Electronic Prescribing for Controlled Substances (EPCS) standards for efficient medication management. These features prioritize clinical documentation efficiency, enabling providers to capture and update patient histories, vital signs, and treatment plans in real-time during ambulatory visits. AI-driven decision support tools within the platform, such as NextGen Ambient Assist, analyze patient-provider interactions to generate structured notes, offer smart suggestions for medications, lab orders, and diagnostic coding, thereby aiding clinical decision-making and reducing administrative burden by up to 2.5 hours per day. The system integrates specialty-specific templates through its Adaptive Content Engine (ACE), which customizes workflows for documentation efficiency and supports over 40 medical specialties, including , , and , ensuring tailored clinical relevance without compromising .

Practice Management and Revenue Cycle Tools

NextGen Healthcare offers an all-in-one practice management (PM) solution designed to streamline administrative operations in ambulatory care settings, encompassing appointment scheduling, claims processing, and denial management to enhance capture. The centralizes staff calendars across multiple locations, allowing configurable scheduling per provider to optimize flow and reduce no-shows through automated reminders via text, email, or voice. Claims processing features advanced scrubbing with customizable edits and a 24/7 background processor that automates error detection, achieving a 98% first-pass acceptance rate for claims in small practices. Denial management employs a rules engine to identify trends and automate follow-ups, enabling practices to resubmit claims within payer deadlines and recover missed , with reported reductions in (A/R) days averaging 13. The company's (RCM) services integrate automated coding, eligibility verification, and to support financial performance in mid-sized and enterprise practices. Automated coding extracts and assigns , CPT, and other codes directly from clinical documentation, while eligibility verification tools confirm insurance coverage at check-in to minimize denials and accelerate . provide customizable dashboards tracking over 100 key performance indicators (KPIs), such as A/R aging and denial reasons, with expert consultations to interpret data and recommend optimizations. These services handle end-to-end processes, including charge capture, claims submission via EDI 837 files, remittance posting from ERA/835 files, and follow-up on payer adjudications using EDI 277 reports, resulting in increased net collections and time savings of up to 12,500 hours for small practices. Integration with NextGen's electronic health records (EHR) system ensures seamless data flow through a single database and master patient index, reducing administrative burden by unifying patient information for billing and scheduling without manual re-entry. This connectivity supports settings by automating workflows like daily payment reconciliation and denial appeals, fostering compliance with standards such as Medicare's one-year resubmission window and improving overall financial transparency.

Specialty-Specific and Managed Services

NextGen Healthcare provides specialty-specific content libraries tailored to over 40 clinical areas, enabling practices to customize (EHR) and practice management (PM) systems with pre-built templates, workflows, and tools designed for unique clinical needs. These libraries include specialty-focused enhancements such as procedure-specific documentation, automated coding rules, and integration with diagnostic devices, ensuring compliance with relevant regulatory standards like those from the (CMS). For instance, in , the solutions feature more than 400 enhancements, including cardiovascular risk scorecards, device connectivity for pacemakers and stress tests, and AI-assisted generation using cardiology-specific macros, which collectively reduce documentation time by up to 2.5 hours per day. Similarly, oncology practices benefit from tailored templates for management and tumor staging, supporting hematology-oncology workflows in rural and ambulatory settings. The company's complement these specialty offerings by providing ancillary support to optimize system performance and . Managed hosting, delivered in partnership with (AWS), offers scalable infrastructure with HITRUST-certified security, proactive monitoring, and service level agreements to minimize downtime and ensure data privacy compliance. Professional consulting services include implementation guidance, platform audits, and custom optimizations, helping practices align EHR and PM tools with clinical processes while maximizing . Training programs feature a mix of online modules, hands-on simulations, and instructor-led sessions tailored to adult learning principles, focusing on specialty-specific applications to enhance user adoption and proficiency. Additional managed services emphasize data-driven insights and regulatory adherence. NextGen and solutions enable the analysis of clinical, financial, and claims data to generate actionable intelligence for risk management and care coordination. Interoperability consulting facilitates seamless data exchange across systems via tools like , supporting real-time record access and payer integration to improve care transitions. For regulatory compliance, such as the Merit-based Incentive Payment System (MIPS), NextGen offers dedicated reporting platforms and Quality Program services that automate measure tracking and submission, assisting practices in meeting CMS requirements efficiently. These services collectively streamline operations, enhance patient outcomes, and support value-based care models without requiring extensive in-house IT resources.

Reviews and Rankings

NextGen Healthcare's EHR and practice management solutions, including medical billing, have received generally positive evaluations from industry research and review sources. In 2026, Black Book Market Research ranked NextGen's Practice Management solutions #1 overall for the ninth consecutive year based on user satisfaction surveys. The ranking highlighted strengths in AI-enabled automation and innovation governance, revenue cycle management, regulatory readiness, and value delivery and partnership quality. Forbes Advisor rated NextGen EHR at 4.1 out of 5 in 2026, citing features such as AI tools including Ambient Assist for automated documentation, strong interoperability, and billing aids like claims scrubbing and automated statements. Software Advice assigned a rating of 4.0 out of 5 based on 1,276 user reviews, with praise for ease of transition to electronic records and open API capabilities. Common drawbacks reported include a steep learning curve, custom pricing that requires quotes (for example, approximately $660 per month for small practices under the NextGen Office plan), and occasional support or workflow issues.

Leadership and Governance

Executive Leadership Team

The executive leadership team at NextGen Healthcare comprises seasoned professionals with deep expertise in healthcare technology, operational efficiency, and strategic growth, particularly aligned with the company's -backed initiatives following its 2023 acquisition by . This composition enables the team to drive innovation in solutions while navigating the demands of private equity ownership, emphasizing scalable and clinical integration. Srinivas (Sri) Velamoor has served as President and since October 1, 2025, succeeding David Sides in a planned leadership transition. In this role, Velamoor oversees the company's overall strategy and innovation in healthcare IT, leveraging his prior experience as President and since January 2024, as well as his background in growth strategy from roles at and . His leadership focuses on enhancing cloud-based electronic health records and to support provider efficiency. James Hammerschmidt serves as Chief Financial Officer, a position he has held since April 2024. With prior experience in corporate development at NextGen and senior finance roles at Becton Dickinson and , Hammerschmidt manages financial operations and supports the 's alignment with objectives for sustainable growth. Jacob Sims is the , appointed in May 2024. Sims directs product development efforts, drawing on his previous tenure as Executive Vice President and CTO at Gainwell Technologies and Health Services, to advance NextGen's technology stack in areas like AI-driven analytics and . Dr. Robert (Bob) Murry acts as Chief Medical Officer since December 2021. A practicing physician with over a decade at NextGen, Murry provides clinical advisory on product design and regulatory compliance, ensuring solutions meet real-world ambulatory care needs while integrating emerging technologies like AI.

Key Leadership Transitions

In November 2023, NextGen Healthcare underwent a significant ownership transition when private equity firm completed its acquisition of the company for $1.8 billion, taking it private. At that time, David Sides served as president and CEO, a role he had held since joining the company in 2017, and he continued in this capacity post-acquisition to guide the firm's strategic direction amid the shift to private ownership. This period marked the beginning of discussions, aligning stability with 's focus on software investments in healthcare technology. On June 6, 2025, NextGen Healthcare announced a further evolution with (MDP) acquiring a significant stake alongside , injecting capital to fuel growth initiatives. Concurrently, the company revealed a planned leadership succession, with President and Srinivas (Sri) Velamoor designated to succeed David Sides as CEO following a transition period. Sides, who had led the company through the 2023 and subsequent expansions, agreed to remain on the and as a material investor to ensure continuity. This announcement underscored the board's intent to leverage Velamoor's expertise in growth strategies to advance NextGen's priorities in cloud-based solutions and . The succession culminated on October 1, 2025, when Sri Velamoor officially assumed the role of president and CEO, ahead of NextGen's annual user group meeting. Velamoor, who joined NextGen in 2021 as Chief Growth & Strategy Officer before ascending to president and COO, was positioned to accelerate the company's migration and AI-driven innovations for healthcare providers. David Sides transitioned out of the CEO position but maintained his board seat and investment stake, facilitating a seamless handover focused on long-term operational enhancements.

False Claims Act Settlement

In July 2023, NextGen Healthcare Inc. agreed to pay $31 million to settle allegations under the False Claims Act brought by the U.S. Department of Justice (DOJ). The settlement addressed claims that NextGen misrepresented the capabilities of its 2014 Edition (EHR) software to obtain certification from the Office of the National Coordinator for (ONC). Specifically, the government alleged that the software failed to meet key 2014 Edition criteria, including functionalities for recording , supporting medical vocabularies, and generating clinical summaries, leading customers to submit false claims for incentive payments under federal programs such as Medicare and . The allegations also included violations of the Anti-Kickback Statute, where NextGen purportedly provided unlawful remuneration to induce healthcare providers to use its certified EHR technology and submit corresponding claims to federal healthcare programs. Examples of such incentives included $10,000 credits toward software implementation and tickets to sporting events, which were intended to encourage adoption and certification attestations despite the software's deficiencies. The case originated as a action filed in 2018 by whistleblowers Toby Markowitz and Elizabeth Ringold in the U.S. District Court for the District of (Case No. 2:18-cv-195), with the whistleblowers receiving $5.58 million from the settlement proceeds under the False Claims Act's relator provisions. NextGen did not admit liability or wrongdoing as part of the resolution, and the DOJ emphasized that the settlement reflects ongoing efforts to ensure compliance in the EHR industry. This outcome underscored potential risks in vendor practices related to incentives and software attestation, prompting heightened scrutiny of EHR providers' representations to federal regulators.

Data Breach and Security Litigation

In 2025, NextGen Healthcare agreed to a $19.375 million settlement following mediations in June and August, which received preliminary court approval on October 30, 2025, to resolve a consolidated lawsuit stemming from a 2023 attack that compromised the sensitive personal information of over 1,049,375 patients. The breach was detected on March 30, 2023, with forensic analysis confirming unauthorized access to NextGen's network from March 29 to April 14, 2023, exposing data such as names, addresses, dates of birth, and Social Security numbers. NextGen notified affected individuals in May 2023 and offered 24 months of free credit monitoring and protection services as an immediate response. The lawsuit, filed in the U.S. District Court for the Northern District of Georgia, consolidated multiple class actions alleging , invasion of privacy, breach of implied contract, and violations of federal and state notification laws, including HIPAA guidelines. Plaintiffs contended that NextGen failed to implement and maintain adequate cybersecurity measures, such as robust , access controls, and timely breach detection protocols, which allowed a ransomware group to infiltrate and exfiltrate data. Despite NextGen's motion to dismiss being partially denied, the company denied all wrongdoing and reached the settlement to avoid prolonged litigation costs and risks. Under the agreement, class members can claim up to $7,500 for documented out-of-pocket losses, up to $250 for lost time (10 hours at $25 per hour), a $50 cash payment (, or $150 for residents), and three years of credit monitoring and protection services, with the fund also covering attorney fees up to $6.25 million and administrative costs. The litigation has prompted NextGen to intensify its data protection efforts, including the expansion of managed services that emphasize reduced risks through features like , role-based access controls, and compliance with HITRUST and ISO standards. These enhancements, integrated into post-breach service offerings, aim to strengthen network resilience and prevent similar incidents, reflecting a broader industry shift toward proactive cybersecurity in healthcare IT. This case underscores the vulnerabilities in EHR platforms and differs from NextGen's prior regulatory settlements related to EHR issues.

References

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  45. https://www.nextgen.com/blog/value-based-care/mips-performance-tips-what-is-mips-and-3-ways-to-improve-your-mips-score
  46. https://www.nextgen.com/services/managed-services-optimization-packages
  47. https://finance.yahoo.com/news/nextgen-healthcare-earns-1-overall-210000632.html
  48. https://www.forbes.com/advisor/business/software/nextgen-ehr-review/
  49. https://www.softwareadvice.com/medical/nextgen-profile/reviews/
  50. https://www.nextgen.com/company/leadership
  51. https://www.globaldata.com/company-profile/nextgen-healthcare-inc/executives/
  52. https://www.beckershospitalreview.com/podcasts/uncategorized/dr-robert-bob-murry-chief-medical-officer-at-nextgen-healthcare-2/
  53. https://www.thomabravo.com/press-releases/nextgen-healthcare-welcomes-madison-dearborn-partners-as-new-investment-partner-and-announces-planned-leadership-succession
  54. https://www.thomabravo.com/press-releases/nextgen-healthcare-completes-ceo-transition-ahead-of-annual-user-group-meeting
  55. https://www.justice.gov/archives/opa/pr/electronic-health-records-vendor-nextgen-healthcare-inc-pay-31-million-settle-false-claims
  56. https://www.hipaajournal.com/nextgen-class-action-data-breach-lawsuit-proceeds/
  57. https://www.hipaajournal.com/nextgen-healthcare-reports-breach-affecting-more-than-1-million-patients/
  58. https://www.hipaajournal.com/nextgen-healthcare-facing-multiple-class-action-data-breach-lawsuits/
  59. https://www.classaction.org/news/19.3m%2B-nextgen-healthcare-settlement-ends-class-action-lawsuit-over-2023-data-breach
  60. https://www.nextgen.com/trust
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