Allscripts announced Wednesday evening that its board has rejected its strategic alternatives and has instead decided to “develop Allscripts’ long-term potential under the direction of our new management team.”
Glen Tullman has relinquished his role as CEO and board member, stepping down immediately. He has been replaced by Paul Black, an Allscripts board member and former Cerner COO. Allscripts President Lee Shapiro will step down immediately and will be available as a consultant to Paul Black for six months.
Dennis Chookaszian, Allscripts board chair, said, “We want to thank Glen Tullman for building Allscripts into one of the leaders in the evolving healthcare IT industry. Glen began at the Company in 1997 when it was unprofitable, turned Allscripts around and achieved record revenues and profits in 2011. Along the way, Glen also grew the workforce to more than 7,000 employees. I also want to thank Lee Shapiro for his many important contributions to Allscripts, particularly with respect to our M&A strategy and international expansion.”
Allscripts shares were down 17 percent in after-hours trading shortly after the announcement.
UPDATE: According to an Allscripts customer e-mail forwarded by a reader, Laurie McGraw (chief client officer) and Diane Adams (EVP of culture and talent) will also be leaving the company.