Healthcare services provider NextGen Healthcare Inc. is closing its Green facility starting in November with the loss of 82 jobs by January.

The closure is part of an “operational efficiency” consolidation measure, the company said in a statement Friday. The office has been open since 2006.

The California ambulatory care services provider said in a state filing that the first round of layoffs will take place Nov. 1, with a second and final round Jan. 2.

NextGen’s facility, which it refers to as its Canton office, is at 5200 Stoneham Road in nearby Green. The work done there will be consolidated into two other offices in Missouri and Maryland, the company said. Employees will receive severance packages and NextGen said it will provide relocation support for Green employees who apply to transfer to either of the other out-of-state offices.

The company said in its filing that the entire Green facility will close.

“This action is expected to be permanent,” the company said in the WARN notice sent to the state’s Office of Workforce Development.

NextGen, based in Irvine, California, provides software, services and analytics to medical and dental group practices. It has about 2,700 employees worldwide.

NextGen issued a statement on the impending closure:

"We value the dedicated NextGen Healthcare team in Canton and thank the community for its longtime support. We take this closure seriously and know it will impact employees and their families,” said Rusty Frantz, NextGen chief executive officer and president. “That’s why we have given 60-120 days’ notice to impacted employees. Canton employees will also receive severance packages. This consolidation is driven by our need to operate as efficiently and effectively as possible to remain competitive in our market and pursue our mission to empower the transformation of ambulatory care.”

The company said no other office closures are planned at this time.

NextGen in July reported fiscal 2020 first quarter profit of $1.2 million on revenue of $131.9 million. That was down from net income of $2.6 million on revenue of $133.2 million for the first quarter of fiscal 2019.

The company in July also lowered its full-year earnings and revenue outlook.

NextGen reported net income of $24.5 million on revenue of $529.2 million for fiscal 2019.

 

Jim Mackinnon covers business. He can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ