Allscripts Axes CEO, Ends Plans to Sell Itself

Shares of Allscripts

plunged over 15.5 percent on Thursday to trade around $9 per share. This drop came after the company replaced its CEO, Glen Tullman, who will step down from both his role as CEO and board member immediately. Effective immediately, Paul M. Black will take over the company's CEO role. Mr. Black is the former COO of fellow healthcare company Cerner Corporation

and currently sits on Allscripts' board of directions. He has also served on the board of The Truman Medical Center, as a director of global healthcare company Haemonetics Corporation

, as a senior advisor at New Mountain Capital and a director with several New Mountain portfolio companies. According to a

issued by the firm, board member Dennis Chookaszian had the following to say about Mr. Black: "Paul possesses a unique blend of operational, healthcare and IT sector expertise, and we are pleased that he has agreed to lead the Company at this critical juncture. Paul's deep domain expertise in healthcare technology, industry relationships, and understanding of Allscripts' solutions and client base make him the ideal choice. Together with our recently appointed Chief Financial Officer Rick Poulton, we are confident that we have a leadership team in place that can execute on our strategic initiatives, capitalize on the many global opportunities that lie ahead, and lead Allscripts through its next phase of growth." Allscripts also indicated that Lee Shapiro will step down as President, further shaking up the company's leadership. Mr. Shapiro will serve as a consultant to Mr. Black for up to six months. According to

, this leadership shakeup occurs just days after the company's stock fell in trading upon news of a merger between Baylor Health Care System and Scott & White Healthcare. With Baylor Health Care System being a major client of Allscripts, the move jeopardized some business for the already struggling firm. Still, despite his departure and the company's struggles, now former CEO Glen Tullman is optimistic, at least publicly. According to the company press release, Mr. Tullman stated, “It's always been Allscripts' goal to revolutionize healthcare and I am proud that Allscripts' employees have moved this industry forward in both the US and abroad – enabling more people to access our healthcare systems, adding thousands of jobs, and developing an industry that will be one of the biggest future growth engines of the U.S. economy. Allscripts' team has shown great resilience and dedication, and I appreciate their hard work to build Allscripts into a leading provider of clinical software, connectivity and information solutions. I am confident that Allscripts is in good hands and has a bright future ahead." Mr. Black certainly has the resume of a proven leader. He helped Cerner develop into a company with $1.5 billion in annual revenues and already has direct experience with Allscripts as a board member. Look for shares of Allscript to rebound with Black at the helm.