Web First: Q&A with Allscripts CEO Glen Tullman
Q. It’s been reported that there was a “standoff between you and Board Chairman Phil Pead. What was the crux of the disagreement? Why was he terminated?
A. As reported by the Company, Phil’s service as chairman of the board, a director and officer of the company terminated on April 25, 2012, after the board engaged in extensive deliberations regarding the leadership of the Company. We wish Phil well and thank him for his contribution to the company. My focus today is all about our clients, how we help them improve healthcare, and ensuring we execute against our priorities. Our vision of a connected community of health is driven by leveraging the largest ambulatory base in the industry, the most used and usable products, our open architecture, and the apps it enables, all provided very cost-effectively.
Q. What do you view as the greatest challenge to recovery?
A. Last quarter we added more than 300 new clients and made solid progress with many of our existing products. From a client perspective, we have to deliver on robust integration and focus on our client experience with our offerings given the number of upgrades and new installs we have. That’s one reason we hired more new employees in development, services and support. These are the right investments and they will pay off for our clients and our shareholders.
Q. What are the issues with product integration? Allscripts/Eclipsys integration?
A. ADX 1.0 [software that integrates Allscripts’ acute and ambulatory technologies] was released some time ago and met the technical requirements, but it didn’t meet our clients’ needs. So we worked side by side with our clients to rebuild the product using Agile rapid prototyping techniques to ensure it was what our clients wanted and needed. ADX 1.5 will go into Beta at clients within 60 days and is scheduled for release at the end of September 2012. The client feedback and early testing has been excellent.
Q. Some of your customers have given you kudos for leadership, but one of your largest shareholders asked for your resignation citing problems with execution and leadership. How do you see it?
A. In my 15 years as CEO, I’ve learned that the best way to build long-term value is to deliver for our clients – they have always been and will always be my primary focus. I am incredibly close with many of our clients and spend most of my time with them, so their support is very much appreciated. Relative to shareholders, we strive to maintain a constructive dialogue with them and continue to be very focused on generating shareholder value. Once again, the best way to do that is to deliver for our clients.
Q. Should Allscripts customers be concerned about support for their EHRs going forward?
A. Our clients have seen and will continue to see improved support and continued investment in products, processes and people. A big part of our focus over the last year has been upgrading our clients to help them achieve meaningful use. To put this in perspective, we have the largest client base in the industry, and no competitor had to touch more clients in such a short time. Given that many of our clients are smaller practices, the challenges have been not just about upgrading software but also include hardware connectivity and workflow.
For some of our clients, this was the first upgrade or change in years. We have worked through those challenges, making significant investments, including, as I mentioned before, adding more frontline support personnel to our team. Additionally, we have initiatives in each product line where we are seeing progress across key metrics and have initiated an “end-to-end” client experience program, bringing together all of the groups that touch a client.
As John Bosco, the CIO of North Shore Long Island Jewish, shared in an email to his team, “I see many positive changes going on within the company that are more focused on long-term success.” Clearly, I agree and that’s where we will continue to focus.
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