Allscripts CEO Black Steps Down Following Sale of Business Units
During Allscripts’ May 5 first-quarter earnings call, CEO Paul Black announced he was stepping down after 10 years at the helm.
“Over the past 10 years, we've seen unparalleled change in our industry, as providers, payers and pharma adopted the technology and solutions Allscripts Health pioneers,” he said. “But this week's closing of the sale of our hospital and physician practices segment marks yet another dramatic change in our company's history, and positions all of our stakeholders, employees, clients and investors for continued success.”
Black said that as the company evolves and focuses sharply on its Veradigm business, “[I]t is a natural time for the next generation of leaders to step forward. As such, I have decided to step down as CEO effective Friday May 6.”
Prior to joining the Allscripts board in 2012, Black spent more than 13 years with Cerner in various executive positions, retiring as Cerner’s chief operating officer in 2007. His career started with IBM, where he spent 12 years in a variety of leadership positions.
Black announced that Allscripts President Rick Poulton would succeed him as CEO. He initially joined Allscripts in 2012 as chief financial officer to oversee the company’s financial operations, business development and strategy.
Before joining Allscripts, Poulton served as the chief financial officer and treasurer for AAR Corp., after joining the company in 2006 as vice president of acquisitions and strategic investment. He spent more than 10 years at UAL Corp. in progressively more senior financial and business development roles, including senior vice president of business development, as well as president and chief financial officer (CFO) of the company's loyalty services subsidiary. He began his career in the audit practice of Arthur Andersen & Co. LLP.
In March Chicago-headquartered Allscripts announced an agreement to sell its suite of technology products catering to hospitals and large physician groups to a unit of Canadian conglomerate Constellation Software Inc. for up to $700 million.
The transaction includes Allscripts’ Sunrise, Paragon, Touchworks, Opal, dbMotion, STAR and Healthquest software and services brands and will let the company focus solely on its Veradigm data systems and services business that works with insurers and life sciences companies.
During the investor conference call, Poulton said the Veradigm business segments saw year-over-year revenue growth of 8 percent during the quarter, which was consistent with the company’s expectations. The Veradigm provider platform continues its growth trajectory, adding over 500 new practices, and 6,100 prescribing physicians during the quarter.
He said they expect that Veradigm revenue will grow in a range of 6 to 7 percent year over year. “Veradigm’s adjusted EBITDA we expect to grow in a range of 10 to 15 percent year over year, and we expect that our consolidated free cash flow from continuing operations to be in a range of 110 to $120 million. So, to wrap up, we feel 2022 got off to a strong start, and we look forward to maintaining that momentum in our new streamlined company."
