Former COO of Cerner Takes the Helm
Yesterday Allscripts announced CEO Glen Tullman, who joined the company 1997, has stepped down. Allscripts company president Lee Shapiro is also out. The two will be replaced by Paul Black, former chief operating officer for Cerner and a board member of Allscripts. According to the company, Shapiro will be retained as a consultant to Black for the next six months.
In the press release issued by Allscripts, Chairman of the Board Dennis Chookaszian said “We want to thank Glen Tullman for building Allscripts into one of the leaders in the evolving healthcare IT industry. “Glen began at the Company in 1997 when it was unprofitable, turned Allscripts around and achieved record revenues and profits in 2011. Along the way, Glen also grew the workforce to more than 7,000 employees. I also want to thank Lee Shapiro for his many important contributions to Allscripts, particularly with respect to our M&A strategy and international expansion.”
Reporters around the health it and business space have quickly weighed in on what this change in leadership will mean to the company.
Forbes on the impact of the acquisition of Eclipsys in 2010: “Tullman overestimated the time it would take for the two companies to integrate. The resignation of the chief financial officer, as well as other executives and board members, in the wake of chairman Phil Pead’s firing last April further weakened confidence in management.”
From Reuters on the selection of Black: “Allscripts stock has fallen more than 42 percent this year amid weak bookings that hampered sales and profit. The company withdrew its full-year outlook in November, as it began to consider strategic alternatives. Later that month, Reuters reported that Blackstone Group LP had emerged as the frontrunner to buy the company but that the two sides were far apart on price and a deal was highly uncertain, according to people familiar with the matter. Black is no stranger to the buyout industry, having served as operating executive of Genstar Capital LLC, a private equity firm, and senior advisor at New Mountain Finance Corporation, an investment management company. His background may come in handy as he seeks to turn around the company’s financial performance in a difficult environment for healthcare IT firms. These companies face a dwindling customer base as hospitals consolidate physician practices into their existing vendors.”
The Wall Street Journal reports: “William Blair analyst Ryan Daniels said he was somewhat surprised by the executive transition, although recent results—along with the inability to sell the organization—may have served as the final straw for the board, driving the exodus of the remaining executive management team. Allscripts has already changed financial chiefs this year.”
And from Modern Healthcare on rumors the company is looking for a buyer: “Allscripts has had a tumultuous year, and in November, after a period of slow sales, Tullman said the company would start to explore strategic alternatives. Board chairman Dennis Chookaszian attempted to squelch earlier rumors of a possible sale, saying for now, the way forward is to keep the company independent, according to the news release.”