Glen Tullman Steps Down as CEO and Board Member
Board of Directors Concludes Evaluation of Strategic Alternatives
CHICAGO, Dec. 19, 2012 /PRNewswire/ — Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX) today announced that it has named Paul M. Black as its President and Chief Executive Officer, effective immediately. Mr. Black is the former Chief Operating Officer of Cerner Corporation and is currently an Allscripts board member. He replaces Glen Tullman, who will step down from his positions as Chief Executive Officer and board member. Lee Shapiro also will step down as President, effective immediately, and will serve as a consultant to Mr. Black for up to six months. In addition, the Company announced that the Board has formally concluded its evaluation of strategic alternatives.
“We want to thank Glen Tullman for building Allscripts into one of the leaders in the evolving healthcare IT industry,” said Dennis Chookaszian, Allscripts Chairman of the Board. “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.”
Commenting on the selection of Paul M. Black as President and CEO, Mr. Chookaszian said: “Paul possesses a unique blend of operational, healthcare and IT sector expertise, and we are pleased that he has agreed to lead the Company at this critical juncture. Paul’s deep domain expertise in healthcare technology, industry relationships, and understanding of Allscripts’ solutions and client base make him the ideal choice. Together with our recently appointed Chief Financial Officer Rick Poulton, we are confident that we have a leadership team in place that can execute on our strategic initiatives, capitalize on the many global opportunities that lie ahead, and lead Allscripts through its next phase of growth.”
Commenting on the strategic alternatives process, Mr. Chookaszian stated: “The Board conducted a thorough and rigorous review of strategic alternatives. The Board concluded, however, that the best course at this time is to develop Allscripts’ long-term potential under the direction of our new management team.”
Incoming Chief Executive Officer, Mr. Black said, “I look forward to building on the many successes achieved by the Allscripts team. Without underestimating the challenges ahead, we have compelling open-platform solutions, an impressive global client base, and a very dedicated and talented team. We will improve the execution of our strategic vision, deliver on our worldwide client commitments, and continue to innovate. Our focus will be on creating long-term value for our shareholders.”
Glen Tullman added, “It’s always been Allscripts’ goal to revolutionize healthcare and I am proud that Allscripts’ employees have moved this industry forward in both the US and abroad – enabling more people to access our healthcare systems, adding thousands of jobs, and developing an industry that will be one of the biggest
future growth engines of the U.S. economy. Allscripts’ team has shown great resilience and dedication, and I appreciate their hard work to build Allscripts into a leading provider of clinical software, connectivity and information solutions. I am confident that Allscripts is in good hands and has a bright future ahead.”
In addition to currently serving as an Allscripts board member, Mr. Black has served on the Board of The Truman Medical Centers for 12 years, most recently as Chairman, and as a director of Haemonetics Corporation (NYSE: HAE), a global healthcare company dedicated to providing innovative blood-management solutions.
Mr. Black spent more than 12 years with Cerner Corporation and retired as its Chief Operating Officer in 2007. He helped build Cerner into a market leader in healthcare information technology solutions with more than $1.5 billion of annual revenues. For most of his career at Cerner, Mr. Black was Chief Sales Officer, playing an instrumental role in the company’s double-digit organic growth. Prior to Cerner, Mr. Black was with IBM from 1982 to 1994, in a number of senior sales, marketing and professional services leadership positions. Since 2007, he has been a Senior Advisor with New Mountain Capital in New York and served as a Director with several New Mountain portfolio companies. Mr. Black recently has served as an operating executive with Genstar Capital, responsible for expanding Genstar’s healthcare and software practices, with specific focus on healthcare technology.
He received a B.S. from Iowa State University and an MBA from the University of Iowa.
Allscripts will conduct a conference call tomorrow, Thursday, December 20, 2012, at 8:30 AM Eastern Time to discuss today’s announcement. Investors can access the conference via the Internet at http://investor.allscripts.com. Participants also may access the conference call by dialing (877) 303-0543 (toll free in the US) or (973) 935-8787 (international) and requesting Conference ID #83012880.
A replay of the call will be available two hours after the conclusion of the call, for a period of four weeks, at http://www.allscripts.com or by calling (855) 859-2056 or (404) 537-3406 – Conference ID #83012880.
Allscripts (NASDAQ: MDRX) delivers the insights that healthcare providers require to generate world-class outcomes. The company’s Electronic Health Record, practice management and other clinical, revenue cycle, connectivity and information solutions create a Connected Community of Health™ for physicians, hospitals and post-acute organizations. To learn more about Allscripts, please visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.
This press release contains forward-looking statements within the meaning of the federal securities laws. Statements regarding future events or developments, our future performance, as well as management’s expectations, beliefs, intentions, plans, estimates or projections relating to the future are forward-looking statements with the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties, some of which are outlined below. As a result, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on our results of operations or financial condition. Such risks, uncertainties and other factors include, among other things: the possibility that the expected synergies, efficiencies and cost savings of the merger with Eclipsys Corporation (“Eclipsys”) will not be realized, or will not be realized within the expected time period; potential difficulties or delays in achieving platform and product integration and the connection and movement of data among hospitals, physicians, patients and others; the risk that the Allscripts and Eclipsys businesses will not be integrated successfully; competition within the industries in which we operate; failure to achieve certification under the Health Information Technology for Economic and Clinical Health Act could result in increased development costs, a breach of some customer obligations and could put us at a competitive disadvantage in the marketplace; the volume and timing of systems sales and installations, the length of sales cycles and the installation process and the possibility that our products will not achieve or sustain market acceptance; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; competitive pressures including product offerings, pricing and promotional activities; our ability to establish and maintain strategic relationships; undetected errors or similar problems in our software products; the outcome of any legal proceeding that has been or may be instituted against us; compliance with existing laws, regulations and industry initiatives and future changes in laws or regulations in the healthcare industry, including possible regulation of our software by the U.S. Food and Drug Administration; the possibility of product-related liabilities; our ability to attract and retain qualified personnel; the implementation and speed of acceptance of the electronic record provisions of the American Recovery and Reinvestment Act of 2009; maintaining our intellectual property rights and litigation involving intellectual property rights; risks related to third-party suppliers and our ability to obtain, use or successfully integrate third-party licensed technology; and breach of our security by third parties. See our Annual Report on Form 10-K for 2011 and other public filings with the SEC for a further discussion of these and other risks and uncertainties applicable to our business. The statements herein speak only as of their date and we undertake no duty to update any forward-looking statement whether as a result of new information, future events or changes in expectations.
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