New Allscripts CEO Paul Black has a lot of explaining to do, and he knows it.
"I don't think right now all of our clients are happy," Black said during a call with stock analysts the morning after he was named to replace Glen Tullman, whose 15-year reign at the Chicago-based electronic health-record systems vendor ended Wednesday in a C-suite shakeup.
"We have some work to do in that space," Black said, vowing to hit the road to talk with key customers. Black, 54, who retired in 2007 as COO of key Allscripts rival Cerner Corp. Black spent 12 years with the Kansas City, Mo.-based company.
Allscripts ranks No. 2 in the ambulatory-care market for complete EHRs, based on CMS data
of physicians and other eligible professionals using its systems to achieve meaningful use and get paid under the Medicare EHR incentive payment program.
But the company has been struggling to integrate is various ambulatory products with the inpatient EHR system developed by the former Eclipsys, which Allscripts purchased in 2010
Allscripts board chairman Dennis Chookaszian thanked both Tullman and departing Allscripts President Lee Shapiro for service to the company. When Tullman took over in 1997, Allscripts was a very small, money-losing company, and Tullman steered it to "record revenues and profits last year" as a global company with 7,000 employees worldwide, Chookaszian said. In characterizing the departure, Chookaszian said, "Glen and the board mutually agreed on his stepping down."
Tullman and Shapiro aren't completely divorced from Allscripts yet. Tullman entered into a consulting contract with the company—effective yesterday and running through March 31, 2013—at a rate of $3,000 per day, according to an SEC filing
. Shapiro's contract runs through June 30 at the rate of $100,000 a month.
Black will receive an annual base salary of $1 million
and a $1.25 million signing bonus, according to SEC filings. He also is eligible for an annual performance bonus of at least 150% of his base salary.