“Reset, Recover, and Reignite” is their plan forward. Veradigm, the former Allscripts, has since 2022 earned several adjectives, such as ‘tumultuous’, ‘troubled’, ‘problematic’, ‘puzzling’, and even ‘mysterious’. It’s now the fourth year since their failure to provide audited reports for 2022 due to financial software problems, an embarrassment for a software and once-leading health IT company. Then it was the same failures in reporting FY 2023, then 2024, with the final blow a delisting from Nasdaq two years ago on 29 February 2024. Despite being solvent, it couldn’t close a sale to one of three major bidders a year ago. This was topped by an SEC enforcement investigation and a July data breach. It was not until last March that Veradigm provided a 2022 financial report…still unaudited.
Some good news arrived last week. The Securities and Exchange Commission (SEC) informed Veradigm that the investigation, pending since January 2024, has been concluded. The SEC does not intend to recommend an enforcement action based on the available information. Former CEO Richard Poulton and former CFO Leah Jones, both of whom resigned in December 2023, received similar letters, according to the filing. Veradigm SEC Form 8-K. Healthcare Dive
The current CEO, Donald Trigg, who’s remained in place since September, held an update call last week. The highlights of the call were reported in both Healthcare Dive (25 Feb and 19 Feb) and HIStalk on Monday.
- Veradigm will next release its annual reports for 2023 and 2024 in a Super 10-K, which is a single annual report that includes data that would have been included in overdue previous reports. The plan is to be current on its filings this year and apply to relist on Nasdaq shortly thereafter. Interim CFO Lee Westerfield called this “a major event”.
- There was no mention of a timetable for filing 2025 results. The preliminary 2025 results show flat revenue and a significant decline in cash due to debt financing and share repurchases: revenue between $584 million and $589 million, down 1% at the mid-point of estimates for the previous year.
- The company’s overall strategy is to reset its business strategy, recover its market position with independent physician practices, and increase profitable growth. According to CEO Trigg, Veradigm will focus on market impact and growth. CEO Trigg stated on the call that Veradigm was previously run as “a holding company as opposed to an operating company”; presumably, it is now the latter.
- 15% of the company’s workforce was cut last year.
- They will discontinue six unnamed low-revenue products.
- Their Chicago headquarters office will close by mid-2027. It closed three unnamed locations in 2025 and will close two more in 2026. There are two operating hubs: Pune, India, and Raleigh, North Carolina.
To be continued…. TTA’s back file on Veradigm here.
Leave a Reply