Veradigm Sticks to Financial Targets As CEO Prepares Exit
Healthcare data and technology services company Veradigm Inc. rang up new business worth more than $30 million annually during the first quarter, keeping the Chicago-based firm on track to offset some client losses and maintain its 2024 revenue level.
In a recent presentation to analysts and investors, Interim CEO Tom Langan—who will soon leave the company—said the new sales help show that Veradigm has good momentum with specialty physician practices, revenue cycle services and value-based care offerings. Detailing the new contracts, Langan said $19 million worth came from Veradigm’s provider segment—which accounts for three-quarters of the company’s top line—while the smaller and growing payer and life sciences group booked about $14 million worth in new business.
Among new clients, Langan said, are four BlueCross BlueShield plans, two of which have signed up for Veradigm’s clinical data exchange product and two that have committed to its Payer Insights offering, which flags care gaps.
Interim CFO Leland Westerfield said Veradigm’s first-quarter revenues came in at around $146 million and that the company’s revenues for all of 2025 will be in line with last year’s roughly $585 million. Because of ongoing work to update the company’s past financial statements, he and Langan declined to update their profit outlook from March’s estimate of adjusted earnings before interest, taxes, depreciation and amortization of $85 million to $90 million.
Langan is preparing to leave Veradigm at the end of July, a move he and the company agreed to in late April. Langan, who has held senior roles at the company (which was known as Allscripts before changing its name at the beginning of 2023) for more than seven years, will receive more than $1.8 million in compensation and other benefits. The Veradigm board of directors is still interviewing candidates to take over from him.
“I am leaving with the knowledge that Veradigm is well positioned in the market we operate in and the confidence that we have the solutions and team to compete and win,” Langan said on the investor update.
Langan looks set to leave Veradigm in decent overall financial shape: He and Westerfield recently negotiated a $100 million debt package with investment firm Francisco Partners and drew $75 million of that amount. The cost of that debt is high—Westerfield said the estimated cost to maturity will be about 12 percent—but it now accounts for the majority of Veradigm’s long-term obligations: The company last week used about $180 million of the $272 million in cash it had on its books at the end of March to buy back roughly three-quarters of its outstanding convertible debt after many investors had exercised their right to have the company do that.
Shares of Veradigm (Ticker: MDRX) rose more than 2 percent to $4.95 on the afternoon of July 7. They have, however, lost about half their value over the past six months, a move that has cut the company’s market capitalization to about $540 million.
About the Author
Geert De Lombaerde
A native of Belgium, Geert De Lombaerde has more than two decades of business journalism experience and writes about markets and economic trends for Endeavor Business Media publications Healthcare Innovation, IndustryWeek, FleetOwner, Oil & Gas Journal and T&D World. With a degree in journalism from the University of Missouri, he began his reporting career at the Business Courier in Cincinnati and later was managing editor and editor of the Nashville Business Journal. Most recently, he oversaw the online and print products of the Nashville Post for more than a decade and reported primarily on Middle Tennessee’s finance sector as well as many of its publicly traded companies.