Quality Systems Rocks!

Over a year ago I started going to a new dentist. It was a new office with LCD screens at each chair. The initial appointment was filled with updates about my history that showed up right away on screen. It was the coolest thing I’ve ever seen in a dentist’s chair (may not be saying much). The software was simple, easy to use and even I could see what was going on.

If software can make your visit to the dentist more enjoyable imagine the benefits the behind the scenes software can have. The key is, software has to make things easier for everyone from the hygenist to the dentist to the insurance company and that’s what the products from Quality Systems do. As the software becomes more common in the marketplace and robustness is proven hospitals and dentists will move toward more automation in billing and record keeping. Which is exactly what QSII does. The company and the stock is about a mega trend and the high quality, rule breaking company in the industry.

Recently Health Management Associates agreed to install electronic medical records (EMR) and enterprise practice management (EPM) software in all of their hospitals after a trial period. This bodes well for the future adoption of QSII’s software in other hospitals.

QSII has grown earnings and sales 100% over the last two years while maintaining a 67% gross margin. Their forward P/E ratio of 21 and reduced expectations after an earnings miss last quarter means this is a great time to get into Quality Systems.