Healthcare Business News

Allscripts CEO Tullman steps down

By Ashok Selvam and Joseph Conn
Posted: December 19, 2012 - 7:00 pm ET

Glen Tullman, Allscripts Healthcare Solutions CEO, is stepping down and the company is replacing him with Paul Black, a former COO of Cerner Corp., according to an Allscripts news release. The Chicago-based health information technology company also announced that it has concluded an evaluation of strategic alternatives and determined that "the best course at this time is to develop Allscripts' long-term potential under the direction" of its new management team.

Black, 54, who retired in 2007 after 12 years from Cerner, also will replace Lee Shapiro as Allscripts' president. Shapiro will stay on as a consultant to aid Black for as long as six months. Black joined Allscripts seven months ago as a board member, a spokeswoman for the Chicago-based healthcare information technology company said. Black had been working as an operating executive for Genstar Capital, a San Francisco-based private-equity firm.

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“I look forward to building on the many successes achieved by the Allscripts team,” Black said in the news release. “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."

An Allscripts conference call is scheduled for Thursday morning to discuss the moves. Tullman began in 1997 as Allscripts' CEO, and he's credited with making the company profitable as the firm grew by 7,000 employees under his tenure. The moves are effective immediately, and Tullman is no longer with the company, the spokeswoman said. Tullman, 53, hasn't informed Allscripts of his plans, but he said he would be available to help Black as needed.

"It's always been Allscripts' goal to revolutionize healthcare, and I am proud that Allscripts' employees have moved this industry forward in both the U.S. 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," Tullman said in the release. "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.”

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

Earlier this month, the company sued the New York City Health and Hospital Corp. in civil court, alleging that the system illegally awarded a $302.8 million electronic medical-record contract to a competitor, Epic Systems Corp. This week, the company's stock price fell after 11-hospital Baylor Health Care System, Dallas—one of Allscripts' larger clients—announced plans to merge with six-hospital Scott & White Healthcare, Temple, Texas. Scott & White uses Epic EMR systems. A failure to hit financial projections in April also led to the firing of Allscripts board chairman Philip Pead, plus the resignations of three other board members: Catherine Burzik, Eugene Fife and Edward Kangas, and the departure of CFO William Davis.

Pead was president and CEO of Eclipsys, an Atlanta-based developer of EHR systems for hospitals that Allscripts, whose strength was at the time largely in EHRs for physician practices, acquired in a $1.3 billion stock swap in 2010. Fife was president, interim CEO and chairman of Eclipsys. Kangas is board chairman of Tenet Healthcare Corp.

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