Quality Systems, parent company of health IT systems vendor NextGen, is expecting to record a non-cash charge of up to $30 million in the third quarter of its 2014 fiscal year, which ended Dec. 31, 2013.
The expected charge is the result of an impairment review of long-lived assets within the company's Hospital Solutions Division, which has performed below expectations. The amount of the impairment charge is projected to be some or all of the division's $30 million in long-term assets.
The company's third quarter results will be lower than expected overall. In addition to the hospital division's performance, the company also experienced increased software development costs surrounding the release of the latest version of NextGen's ambulatory electronic health record system.
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