American medical technology provider, Allscripts, has replaced its CEO. Glen Tullman has stepped down from the chief executive post of the firm and the position will be taken up by Paul Black, a board member, almost immediately.
Tullman had led Allscripts for 15 years and steered the firm through many highs and lows.
"Though Mr. Tullman's departure is abrupt, parting is a friendly and mutual decision," Ariana Nikitas, spokesperson for Allscripts told Wall street Journal
Allscripts has also ditched its plans of going private. Shares of the company fell by more than 18 percent and it recorded an overall drop of 44 percent this year, reported Bloomberg.
"The board conducted a thorough and rigorous review of strategic alternatives," Dennis Chookaszian, chairman of Allscripts told The Wall street Journal.
"The board concluded, however, that the best course at this time is to develop Allscripts' long-term potential under the direction of our new management team," he added
Four members of the board had already resigned in April due to leadership rifts and an alleged row with an important shareholder, reported Wall Street journal.
Allscripts announced earlier in November that it was analyzing strategic measures to boost its sales. The company had experienced a recent sales decelerate and failed to supply products to its customers, reported WSJ.
Allscripts diversified its product line to enter into the hospital and Medicare industry by taking over Eclipsys in 2010, reported Forbes. However, the acquisition did not do very well.
Along with Tullman, Lee Shapiro, president of Allscripts was also displaced and will continue serving as a consultant for not more than six months, reported Bloomberg.
Allscripts is happy to welcome its new CEO. Black has a great track record in the health IT industry. He worked at Cerner, a healthcare IT firm for more than 12 years and served as an operating executive at Genstar Capital LLC, a healthcare and software practices equity firm.
"Paul possesses a unique blend of operational, health-care and IT sector expertise, and we are pleased that he has agreed to lead the company at this critical juncture," Chookaszian told Bloomberg.
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