Dive Brief:
- Veradigm’s interim CEO will leave the company after a little more than a year in the chief executive role, the health IT company said in a securities filing Tuesday.
- Tom Langan will step down on July 31. The company has begun a search to find a permanent CEO, and Langan declined to participate as a candidate in the process, Veradigm said in the filing.
- The health IT firm also extended its employment agreement with interim CFO Lee Westerfield through the end of the year.
Dive Insight:
Langan has been a company leader at Veradigm, formerly named Allscripts, since 2018. He also served as the firm’s president and chief commercial officer.
Langan will receive $1.4 million, his base salary for the year plus a target annual bonus, as well as $406,000 based on performance and reimbursement of attorneys’ fees for negotiating the separation agreement, according to the securities filing.
A Veradigm spokesperson declined to comment on why Langan is leaving the company, or if there’s an estimate as to when the CEO search process could be complete.
Langan’s departure serves as another leadership shakeup for Veradigm. He started as interim CEO in June last year, about six months after the board asked for and received resignations from the company’s previous chief executive and chief financial officers.
At that time, the company had been struggling for months to file financial reports due to “internal control failures,” which eventually led to Veradigm being delisted from Nasdaq in early 2024.
After the company was removed from the stock exchange, the firm explored strategic alternatives like a sale or a merger, but Veradigm ended its review early this year without a deal.
However, the health IT company has recently made progress on its delayed financial reports. Last month, Veradigm issued its full year report for 2022, as well as restated filings for 2020, 2021 and the first three quarters of 2022. Before the release, Veradigm hadn’t reported its annual or quarterly financials to regulators since November 2022.
The health IT vendor also released unaudited financial ranges for 2023 and 2024, and guidance for 2025 in March. However, executives said last month Veradigm likely won’t be current on its financial reporting until sometime in 2026.
