The leadership shake up continues at Allscripts Healthcare Solutions Inc (NASDAQ:MDRX). The top two executives have stepped down and the company has appointed a board member to oversee their duties in the interim a release said late Wednesday night.
The company’s board says it has completed a review and decided that moving forward it would be best for the healthcare information technology solution provider to be under the leadership of a new management team as part of its strategic planning.
Like many situations involving the ouster of senior management the markets did not respond approvingly in the short term during after-hours trading that saw Allscripts’ stock fall nearly 20% on the news.
Paul M Black who holds the position of chief operating officer of Cerner Corp and is also a current board member of Allscrips has been named as the interim leader in both the positions of president and CEO.
The current president Lee Shapiro will step down from the company and will serve as a consultant to Black for approximately six months. Black also replaces Glen Tullman, who is stepping down from his positions as CEO and board member. Tullman began work at Allscripts in 1997 when the company was unprofitable and helped lead them into an era of profitability.
A new chief financial officer was also recently added to the team roster at Allscripts in their ongoing management makeover.
“We will improve the execution of our strategic vision, deliver on our worldwide client commitments, and continue to innovate,” Black said. “Our focus will be on creating long-term value for our shareholders.”
Shares fell $2.03 to $8.65 in after-hours trading on the news.
Stock Price Performance: (30-Day) Between November 19, 2012 and December 19, 2012, Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) stock price decreased USD $1.53 (-12.46%) from USD $12.27 to $10.74.