NextGen Healthcare Strengthens Telehealth Platform with Strategic Acquisitions of Medfusion and OTTO Health

On December 23, 2019, VCBeat (WeChat official account: vcbeat) learned that the California-basedMedical Solutions ProviderNextGen Healthcare has recently acquired two companies with extensive experience in connected care: Medfusion and OTTO Health. Earlier this month, the company announced the completion of its acquisition of Medfusion, a North Carolina-based developer of mobile health-enabled patient engagement solutions, offering services such as appointment scheduling and billing payments. Subsequently, NextGen completed the acquisition of OTTO Health, a California-based developer of virtual care services.

NextGen Healthcare, a leading provider of healthcare solutions, offers a suite of software, services, and analytics solutions for medical and dental group practices. The company provides an integrated technology and services platform that supports ambulatory and specialty care practices of all sizes; enhances the patient care experience and facilitates the transition to value-based healthcare, with a commitment to improving the lives of practitioners and their patients.

Previously, NextGen Healthcare had a history of six acquisitions: the earlier acquisition of healthcare solutions company Topaz Information Solutions in 2019; the separate acquisitions of medical software and services companies EagleDream Health and Entrada in 2017; the acquisition of healthcare tracking device provider CQI Solutions in 2011; and the separate acquisitions of payroll software provider Practice Management Partner and healthcare revenue management company Healthcare Strategic Initiatives in 2008.

NextGen Healthcare offers customized, comprehensive clinical solutions that enable practitioners to shed administrative burdens, deliver high-quality personalized care, and streamline clinical workflows. The company also provides clients with related business management, financial services, and revenue cycle management, which help improve both financial and clinical performance.

NextGen Healthcare President and CEO Rusty Frantz made a promise to customers: “The better approach we offer is not about reverting to the average standard of critical care systems that regard disease treatment as a noble mission, but rather about fostering innovation and invention at the frontline of healthcare within community-based physician-patient interactions. United, I believe we can make healthcare better.”

Following the completion of two rounds of acquisitions, Rusty Frantz, President and CEO of NextGen, stated in a recent press release: “With the acquisitions of OTTO Health and, most recently, Medfusion, we have taken a significant step forward. We remain committed to delivering comprehensive capabilities that engage and satisfy patients. By integrating virtual care into the NextGen Healthcare platform, we are now able to offer patients and providers a new dimension of experience—meeting patients where it is most convenient for them, without disrupting providers’ natural workflows.”

It is understood that NextGen Healthcare’s two rounds of acquisitions have focused on a pain point in the current telehealth industry: the lack of widespread adoption of integrated models. Many telehealth services operate outside of electronic health records (EHRs) or connect to platforms through limited entry points, forcing health systems to either silo data without causing disruption or seek alternative methods to support clinical workflows. Medical experts state that the next phase of telehealth innovation will center on integrating these platforms, services, and tools so that data automatically flows from the point of care—whether in hospitals, physician offices, clinics, schools, or homes—into medical records, and vice versa.

Founded in 2012, OTTO Health is a healthcare communication platform. Dr. Michael Guese, the founder, stated that OTTO Health aims to transform how providers communicate with patients by delivering video services across any device. Leveraging the OTTO platform, providers can fully integrate video visits into their existing workflows to create new communication channels, thereby generating revenue and enhancing patient satisfaction. OTTO Health’s mission and vision are to provide a seamless virtual communication experience that harnesses the benefits of telemedicine and improves healthcare for both patients and providers.

Medfusion, founded in North Carolina, provides medical website development and support to healthcare clients and serves as a provider of communication solutions between patients and providers. Medfusion’s solutions enable healthcare providers to serve their patients while improving office efficiency and generating revenue. In collaborating with healthcare entities, Medfusion has developed healthcare-specific features, such as physician directories, credentialing software, and interactive survey applications.

(Compiled by Wang Jingna)