Allscripts Healthcare Solutions Inc. elected a new chairman, moving quickly to restore order on its board after the termination last week of its former chairman sparked the resignation of three board members and sent its shares tumbling.
The struggling provider of electronic health-care records said Monday it has named current board member Dennis Chookaszian as chairman. Chookaszian, who has served on the Allscripts board since September 2010, was formerly the chief executive and chairman of mPower Inc., a financial advice provider focused on the online management of 401(k) plans.
Allscripts last week didn't say why it ousted Philip Pead as chairman, but noted that he will get the severance package "for a termination without cause" under his contract.
The ouster came after "extensive deliberations," the company said. Following those talks, directors Catherine M. Burzik, Eugene V. Fife and Edward A. Kangas chose to leave the board because they disagreed with the majority's decision.
Chief Executive Glen Tullman parried questions about the board departures on a call Thursday with analysts. Tullman, though, did hint that the roots of the disagreement may stretch back to Allscripts's $1.3 billion purchase of Eclipsys, another software company, in 2010.
The news last week of the departures came as the company reported a disappointing 54% decrease in first-quarter earnings and lowered its guidance for the year.
Allscripts also Monday said that its board has authorized management to repurchase an additional $200 million of the company's outstanding shares, bringing the total amount authorized for stock buybacks to $400 million.
Shares closed Friday at $10.30 and were inactive in premarket trading. The stock is down roughly 37% over the past week.
This story first appeared on WSJ.com
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