NextGen's (NXGN) RCM Services Adopted by Coastal Orthopedics
NextGen's (NXGN) RCM Services aids Coastal Orthopedics to maintain its financial stability throughout the pandemic period.
NextGen Healthcare, Inc. NXGN recently announced that its Revenue Cycle Management (“RCM”) Services has been successfully optimized by Coastal Orthopedics (Coastal) for its billing and reporting purposes. The RCM Services is an extension of NextGen’s use of the NextGen Enterprise electronic health records (“EHR") and NextGen Practice Management solutions.
With the latest adoption of its product, NextGen is likely to solidify its foothold in the global RCM Services space. The RCM Services business is a component of the broader Managed Services business of the company.
Significance of the Adoption
NextGen utilizes a combination of technology and domain experts with real-world experience to manage the back offices of specialty groups like Coastal, where the payer pool consists mainly of complex Medicare and Medicare Advantage plans. The adoption of the company’s RCM Services by Coastal is expected to enable the latter to focus on improving patient experience and clinical care.
Per a report by MarketsandMarkets, the global RCM market is anticipated to reach $90.43 billion in 2022 from $45.59 billion in 2016 at a CAGR of 12.1%. Factors like decreasing reimbursements in the healthcare industry, regulatory mandates for the adoption of EHR/EMR (Electronic Medical Record) and loss of revenues due to billing errors are expected to drive the market.
Given the market potential, the continued adoption of the NextGen’s RCM Services is likely to provide a significant boost to its business globally.
Of late, NextGen has witnessed a few notable developments across its business.
The company, in July, reported its results for first-quarter fiscal 2022 where it recorded strength in its overall top line as well as its segmental revenues.
In June, NextGen announced that its RCM Services had been adopted by Palmetto Retina Center for its six locations in South Carolina.
Shares of NextGen have gained 10.9% in the past year against the industry’s 15.4% fall. The S&P 500 index rose 33.6% in the same time frame.
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Zacks Rank & Key Picks
Currently, NextGen carries a Zacks Rank #3 (Hold).
Henry Schein’s long-term earnings growth rate is estimated at 13.9%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IDEXX’s long-term earnings growth rate is estimated at 19.9%. It currently has a Zacks Rank #2.
Intuitive Surgical’s long-term earnings growth rate is estimated at 9.7%. It currently flaunts a Zacks Rank #1.
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