NextGen Healthcare, Inc. NXGN recently announced that it has extended its agreement with Athletico Physical Therapy (Athletico). Following this extension, NextGen Enterprise electronic health record (EHR) and NextGen Enterprise practice management (PM) will be used to optimize clinical and financial performance across Athletico’s newly expanded footprint.

Oak Brook, IL (a suburb of Chicago)-based Athletico is a renowned national provider of quality orthopedic rehabilitation services to communities, employers and athletes.

With the latest extended agreement, NextGen is likely to solidify its foothold in the EHR and PM spaces across the nation, thereby boosting its Enterprise domain.

Significance of the Agreement

NextGen’s management believes that the extension of its longtime agreement with Athletico reflects that its scalable solutions are strongly equipped to suit healthcare organizations’ needs at all stages of growth.

Athletico’s management feels that expanding its relationship with NextGen will likely be a key to support its organizational growth. Per management, Athletico’s newly acquired locations have already experienced meaningful improvements in revenues and financial performance since the adoption of NextGen’s interoperable solutions.

Industry Prospects

Per a report by Grand View Research, the global medical rehabilitation services market size was valued at $144.6 billion in 2021 and is anticipated to reach $385.9 billion by 2030 at a CAGR of 6.1%. Factors like the rise in elderly population, an increase in the prevalence of chronic conditions among adults and the increasing number of children with developmental conditions are likely to drive the market.

Given the market potential, the latest extended agreement is expected to significantly boost NextGen’s business.

Notable Developments

Last month, NextGen announced an expanded alliance with Luma Health to equip ambulatory organizations nationwide with artificial intelligence-enhanced solutions for patient communications, beginning with intake and self-scheduling.

The same month, NextGen announced that Community Reach Center had chosen NextGen EHR and NextGen Enterprise PM to address mental health, substance abuse and primary care needs across the Denver area.

In July, NextGen reported its first-quarter fiscal 2024 results, wherein it registered a solid uptick in the top line and bottom line, along with strength in both Recurring and Non-recurring revenues. Robust increases in Subscription services, Managed services and Transactional and data services revenues in the quarter were also seen. The improvement in Other non-recurring services revenues was recorded.