NextGen's (NXGN) New Cloud-Based Solution to Improve Workflow
NextGen Healthcare, Inc. NXGN recently announced the launch of Mirth Cloud Connect, a cloud-based solution that provides interoperability as a managed solution, at the ongoing ViVE 2023. Mirth Cloud Connect is built upon NextGen’s popular Mirth Connect.
The latest product is expected to be a significant addition to NextGen’s Interoperability Solutions business of the broader Insights domain, enabling the company to strengthen its foothold in the global healthcare data management space.
Significance of the Launch
Per NextGen, the Mirth Cloud Connect has been designed to aid in solving clinical data exchange challenges faced by multi-facility hospital systems, health information organizations, public health agencies, other health technology vendors and large ambulatory practices. The cloud-based solution is expected to streamline connectivity and patient data flow from multiple trusted sources to care providers and patients across multiple standards. This will likely enable actionable insights at the point of care and facilitate better healthcare outcomes.
The flexible and scaled interoperability solution, Mirth Cloud Connect, is also expected to help resolve various challenges, including high costs to develop and maintain interfaces as business scales and interoperability standards evolve.
Per management, interoperability can have an intensely positive impact on the healthcare industry, which should aid in achieving better health outcomes. Management believes that Mirth Cloud Connect, which leverages the company’s innovation partnerships with Amazon Web Services and Snowflake, will likely deliver interoperability with purpose.
Industry Prospects
Per a report by MarketsandMarkets, the global healthcare interoperability solutions market was estimated to be $2.9 billion in 2021 and is anticipated to reach $5.7 billion by 2026 at a CAGR of 13.9%. Factors like the growing need to reduce healthcare costs and the rapid adoption of the electronic health record and other healthcare IT solutions are likely to drive the market.
Given the market potential, the latest launch of NextGen’s product is expected to significantly boost its business on a global scale.
Notable Developments
Last month, NextGen announced that Compass Health Network had chosen NextGen Behavioral Health Suite to provide whole-person care.
In January, NextGen reported its third-quarter fiscal 2023 results, where it saw a solid uptick in the top line and strength in Recurring revenues. Robust increases in Subscription services, Managed services, and Transactional and data services revenues in the quarter were also registered. The improvement in Other non-recurring services revenues was also witnessed.
The same month, NextGen announced that Eye Health America had added the NextGen Patient Experience Platform and NextGen Pay powered by InstaMed to enhance the patient experience.
Price Performance
Shares of the company have lost 15.2% in the past year compared with the industry’s 44.2% decline and the S&P 500's 15.2% fall.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, NextGen carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are Hologic, Inc. HOLX, Edwards Lifesciences Corporation EW and Avanos Medical, Inc. AVNS.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 4.9% against the industry’s 17.9% decline in the past year.
Edwards Lifesciences, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 6.8%. EW’s earnings surpassed estimates in two of the trailing four quarters, missed in one and matched in the other, the average beat being 1.7%.
Edwards Lifesciences has lost 30.7% compared with the industry’s 17.9% decline over the past year.
Avanos, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1.8% for 2023. AVNS’ earnings surpassed estimates in all the trailing four quarters, the average beat being 11%.
Avanos has lost 14.3% compared with the industry’s 17.9% decline over the past year.
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Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
Hologic, Inc. (HOLX) : Free Stock Analysis Report
AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report
NEXTGEN HEALTHCARE, INC (NXGN) : Free Stock Analysis Report
