I reviewed the information on QSII and went ahead and purchased 182 shares at $38.1324/share. I would like to share with you my thoughts on QSII, why I made this purchase, and why
QUALITY SYSTEMS (QSII) IS RATED A BUY
After purchasing shares at $38.13, the stock did decline slightly and closed at $37.80, up $4.51 or 13.55% on the day.
Quality Systems is involved in assisting healthcare facilities implement electronic medical records. As explained by the Yahoo Finance "Profile" on QSII, the company
"...engages in the development and marketing of healthcare information systems in the United States. Its system automates various aspects of medical and dental practices, and networks of practices, such as physician hospital organizations and management service organizations, ambulatory care centers, community health centers, and medical and dental schools. The company offers proprietary electronic medical records software and practice management systems under the NextGen3 product name."
If you are not familiar with the market potential to electronic medical records, note what this article had to say:
"The cost for the packaged electronic medical record (EMR) systems for a large teaching hospital is $1.95 million. The number sold at 126 in 2006 is anticipated to grow to 177 in 2013. The replacement cycle is generally six years for these electronic medical record (EMR) systems packages. Rather than rip and replace, systems tend to be upgraded to new versions.
Electronic medical record markets are very significant. All facilities and all medical practices need to move to automated process that replaces manual handling of written patient records. The top 800 facilities worldwide are anticipated to spend hundreds of millions of dollars each to implement electronic patient records. While a lot of that spending will be on proprietary software, a lot of it will be for packaged software solutions."
There is a very large potential market for electronic medical records (EMR):
"Enterprise electronic medical record (EMR) market forecast analysis indicates that the future of care delivery depends on automation of process.
