Dive Brief:
- Allscripts CEO Paul Black is stepping down effective immediately after almost a decade at the medical software vendor, the executive said on a Thursday call with investors.
- Black, who's been Allscript's chief executive since December 2012, will be replaced by current president Rick Poulton. Black will work with Poulton through the end of the second quarter on the transition.
- Allscripts recently completed the sale of its hospital and large physician practices business to Canada-based Harris Computer Corporation, a subsidiary of holding company Constellation Software, for $670 million, with an additional $30 million contingent on the performance of the business. Allscripts plans to use the funds to beef up its health IT and data analytics segment Veradigm.
Dive Insight:
Veradigm is now the core of Allscripts' business, following the divestiture of the vendor's underperforming hospital and large practice EHR segments. The unit, since launching in 2018, has grown quickly as Allscripts looks to strategically invest in EHR-agnostic platforms, including in the areas of payment, data analytics, life sciences and research marketplaces.
"As the company transforms and launches into its next evolution focusing on our Veradigm business, it is a natural time for the next generation of leaders to step forward," Black said. "As such, I have decided to step down as CEO."
Black transitioned from Allscripts' board, where he served as an independent director, to become the Chicago-based vendor's chief executive in 2012, succeeding the company's founder and CEO Glen Tullman. Prior to joining Allscripts, Black was the COO at rival EHR vendor Cerner.
Black said leaving Allscripts was "obviously a difficult decision." He's handing over the reins to Poulton, who joined Allscripts as CFO and was promoted to president in 2015.
Prior to that, Poulton served as CFO for aviation services company AAR Corp, and spent more than a decade at United Airlines in a number of senior financial and business development roles.
"We expect a positive investor reception to the news given Mr. Poulton’s track record of deal execution," SVB Leerink analyst Stephanie Davis wrote in a note on Allscripts' first quarter results.
On Thursday, Allscripts reported revenue of $143 million for the first quarter, up 7% year over year. Veradigm accounted for $136 million of that topline.
