NextGen Healthcare Successfully Completes CMS Claims Attachment Pilot

Horsham, Pa.--November 10, 2005--NextGen Healthcare Information Systems Inc., a subsidiary of Quality Systems, Inc. (Nasdaq: QSII), today announced that it has completed a pilot project with Empire Medicare Services, a fee-for-service Medicare contractor, and the Workgroup for Electronic Data Interchange (WEDI) Foundation to facilitate the use of electronic attachments between a health plan and its providers. The pilot program, which was funded for Empire Medicare Services and WEDI by the Centers for Medicare & Medicaid Services (CMS), tested the use of electronic claims attachments in accordance with HIPAA’s transaction code sets, including ANSI 275 and 277.

Using the integrated claims, clinical and imaging products provided by NextGen Healthcare, Empire Medicare Services electronically requested additional information from participating providers to complete the full claims cycle from the initial 837 transaction to the 275 claim attachment submission. The use of Logical Observation Identifier Names and Codes (LOINC) codes within each request was used to specify the information being requested and provided the level of detail necessary for the provider to successfully adjudicate the claim. Each LOINC code was mapped to the existing information in the provider's system, such as EMR documents, scanned images and lab results, to produce the electronic attachment.

NextGen Healthcare recently presented the results of the pilot project at the Second Annual Claims Attachment Forum, which was sponsored by the Association for Electronic Healthcare Transactions (AFEHCT), WEDI, Health Level Seven (HL7) and ASC X12.

About Quality Systems, Inc.
Quality Systems, Inc. and its NextGen Healthcare Information Systems subsidiary develop and market computer-based practice management, patient records, and connectivity applications for medical and dental group practices. Visit www.qsii.com and www.nextgen.com for additional information.

This news release may contain forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, and the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates, or projections relating to the future (including, without limitation, statements concerning revenue and net income) are forward-looking statements within the meaning of these laws and involve a number of risks and uncertainties. Moreover, these forward-looking statements are subject to a number of risks and uncertainties, some of which are outlined below. As a result, actual results may vary materially from those anticipated by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the volume and timing of systems sales and installations; length of sales cycles and the installation process; the possibility that products will not achieve or sustain market acceptance; seasonal patterns of sales and customer buying behavior; the timing, cost, and success or failure of new product and service introductions, development, and product upgrade releases; undetected errors or bugs in software; changing economic, political, or regulatory influences in the health-care industry; changes in product-pricing policies; availability of third-party products and components; competitive pressures, including product offerings, pricing, and promotional activities; the Company's ability or inability to attract and retain qualified personnel; possible regulation of the Company's software by the U.S. Food and Drug Administration; uncertainties concerning threatened, pending, and new litigation against the Company, including related professional services fees; uncertainties concerning the amount and timing of professional fees incurred by the Company generally; changes of accounting estimates and assumptions used to prepare the prior periods' financial statements; general economic conditions; and the risk factors detailed from time to time in Quality Systems' periodic reports and registration statements filed with the Securities and Exchange Commission. A significant portion of the Company's quarterly sales of software product licenses and computer hardware is concluded in the last month of the fiscal quarter, generally with a concentration of such revenues earned in the final ten business days of that month. Due to these and other factors, the Company's revenues and operating results are very difficult to forecast. A major portion of the Company's costs and expenses, such as personnel and facilities, are of a fixed nature and, accordingly, a shortfall or decline in quarterly and/or annual revenues typically results in lower profitability or losses. As a result, comparison of the Company's period-to-period financial performance is not necessarily meaningful and should not be relied upon as an indicator of future performance. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact:
NextGen Healthcare Information Systems
Jennifer Kuesel, 215-657-7010
JKuesel@nextgen.com


   
   
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