Allscripts shareholders quiet despite turbulent year

 

Paul Black, CEO of Allscripts Healthcare Solutions Inc

Allscripts Healthcare Solutions Inc.’s 2013 annual meeting of stockholders was a quiet and quick event. In fact only one shareholder sat down with the Chicago-based company’s executives and board members who are working to get the once thriving electronic health record provider back on track after a turbulent 2012.

Despite that challenge, Tuesday’s meeting at Allscripts’ headquarters in the Merchandise Mart Plaza lasted only 15 minutes, and no shareholder asked any questions.

But shareholders did approve several proposals, including the amendment of a stock incentive plan that would increase the number of shares outstanding. They also elected the company’s slate of directors and gave their blessing to executive compensation packages.

“Since there’s no other business to conduct today, that concludes our meeting,” said Dennis Chookaszian, the company’ chairman of the board.

The shareholder silence at the meeting was in contrast to strong investor complaints during the past year that led to lawsuits as Allscripts’ shares slumped.

In 2012 Allscripts saw its market capitalization cut by half. On April 27 last year, the company’ stock plummeted nearly 36 percent after Allscripts posted poor earnings and fired its chairman. Three directors resigned. Glen Tullman, Allscripts’ then-CEO, was ousted in December after an effort to sell the company failed.

Tullman led a 2010 acquisition of hospital technology company Eclipsys Corp. in hopes of  expanding Allscripts’ business from doctors to hospitals. That transaction resulted in a decline in sales, which contributed to the boardroom dispute.

“2012 was a tough year for the company, but it’s behind us now,” said Paul Black, Allscripts’ current CEO, at Tuesday’s meeting. “2013 is about execution.”

Black said the company would focus on innovation, retention of clients and employees, and controlling costs this year.

In March Allscripts acquired health management solution providers dbMotion and jardogs LLC in an effort to enlarge its product base. Allscripts’ stock price has been on an upbeat track following those deals.

“We will build upon those two platforms. We will interconnect electronic medical records at existing universe communities and in the marketplace today. And once they are all connected we will develop a virtualized patient medical record. That single source of truth will be used by clinicians to manage populations of care and will be used by patients to manage their care as well.”

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