NextGen Healthcare Information Systems is adding another revenue cycle management company to its newly created healthcare finance business portfolio with the acquisition of Practice Management Partners.

The Horsham, Pa.-based provider of ambulatory healthcare information systems and connectivity software announced the acquisition on Thursday - its second RCM purchase in the past six months. PMP, founded in 2001 and based in Maryland, provides physician billing and technology management services to hundreds of providers, mainly in the Mid-Atlantic region.

"We have been very pleased with the demand we have seen for our revenue cycle management services, and while we remain committed to organic growth in all areas of our business, PMP will help to build out our RCM capability both geographically and with regard to capacity and talent," said Patrick Cline, NextGen president. "This acquisition also continues to build our base of recurring, visible revenue."

In May, NextGen acquired Healthcare Strategic Initiatives of St. Louis, a 12-year-old company offering RCM services to thousands of providers in the Midwest area. That acquisition was folded into the company's newly created NextGen Practice Solutions, a line of business devoted to providing physician practices with RCM services.

PMP adds about 200 people and $16 million in annual revenue to NextGen's books.

"This is an exciting step for PMP," said Don Good, the company's president. "Our proprietary denial management science and account receivable methodologies coupled with our strong management team and diverse client base made PMP an attractive partner for NextGen. Powered by NextGen, we will be able to offer what we know the physician community really needs and what the market is demanding: a truly integrated revenue cycle management solution."

NextGen is a wholly owned subsidiary of Quality Systems, Inc.

In the past half-year, NextGen has signed contracts with the Illinois Primary Health Care Association, Health Management Associates of Florida and Banner Health of Phoenix, Ariz.

Will the RCM marketplace be a reliable source of growth for NextGen in the future? Send your comments to Managing Editor Eric Wicklund at eric.wicklund@medtechpublishing.com