Hot Growth Special Report 2006 >



Quality Systems (QSII)

Everybody knows the healthcare industry is sick of paperwork. Quality Systems of Irvine, Calif. has built a nice little business automating the information needs of medical and dental group practices, community health centers, and dental schools. Quality's software keeps track of patient information, appointment scheduling, billing, insurance claims processing, and treatment outcome studies. In the past two years, Quality's net income has more than doubled, to $16 million on sales of $88 million. The company has been in the news lately though for reasons other than its strong growth. Director and large shareholder Ahmed Hussein launched a proxy contest last year, saying the company's board wasn't truly independent and had been handpicked by founder Sheldon Razin, who was asked to step down in 2000. Current CEO Louis Silverman has disputed the contention.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

25.8 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

43.9 %

Return on Inv. Capital (3-yr.)

22.2 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

24.1 %

P/E Ratio


No. of Employees


Industry Systems Software


Location Irvine, Calif.
Phone 949 255-2600
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Quality Systems and its subsidiary NextGen Healthcare Information Systems, engage in the development and marketing of health-care information systems that automate medical and dental group practices, community health centers, physician hospital organizations, management service organizations, and dental schools. Its software systems include general patient information, appointment scheduling, billing, insurance claims submission and processing, managed care plan implementation and referral management, treatment outcome studies, treatment planning, drug formularies, electronic patient records, dental charting, and letter generation. In addition, the company offers its clients hardware and software maintenance and support services, system training services, and electronic claims submission services. Quality Systems was founded in 1974 and has its headquarters in Irvine, Calif.

Data provided by Capital IQ
Louis E. Silverman

Louis E. Silverman, 46

Chief Executive Officer, President, and Director

Total Compensation*

$ 435,676

Total Options Value*

$ 7,031,352

* Fiscal Year 2005

Amherst College - BA, Harvard Business School - MBA

Executive Bio

Robert Montgomery became chairman of the board of directors and chief executive officer of Reliv International on February, 1985, and president on July, 1985. Montgomery has been a director of Reliv International since 1985. Montgomery is also the president and a director of Reliv and president and a director of Reliv World, both wholly-owned subsidiaries of Reliv International Inc. Montgomery received a BA in economics from the University of Missouri.

Management Team

Key Executives

Louis E. Silverman; Patrick B. Cline; Greg Flynn; Paul Holt

Board Directors

Ibrahim Fawzi; Steven T. Plochocki; Vincent J. Love; Maurice J. DeWald; Patrick B. Cline; Sheldon Razin; Ahmed Hussein; Louis E. Silverman

Executive Data provided by Capital IQ