The board of directors of NextGen Healthcare has created new executive leadership and board oversight committees as the ambulatory health IT developer starts looking for a new CEO.
WHY IS IT IMPORTANT
NextGen announced Monday afternoon Rusty Frantz (who served as the president and CEO for the company for over six years) has “agreed on a mutual separation”; he would resign from these roles as well as the NextGen board, effective immediately.
“I’m incredibly proud of all we have accomplished over the past six years,” said Frantz in a statement. NextGen Healthcare is a great organization. I can see the talent and dedication firsthand. He explained that this transition would allow him to devote 100% of his attention to my most important priority: my family.
NextGen Healthcare will establish an interim executive leadership team to lead the search for a new CEO. Spencer Stuart is an executive search firm.
The following members will be part of the committee:
- James Arnold, Jr., Chief Financial Officer
- Donna Greene is the EVP for human resources.
- Chief Technology Officer David Metcalfe.
- Sri Velamoor, Chief Strategy and Growth Officer, is now available for hire (once he joins us next month).
The ELC works with a newly formed board oversight committee. It includes Jeff Margolis as non-executive chairman, and Craig Barbarosh as vice chairman.
Margolis expressed gratitude to Rusty for leading NextGen Healthcare in a successful operational reorganization. Today the company enjoys the highest-quality ambulatory healthcare solutions, top-in-class customer satisfaction and service levels, and an extraordinarily engaged team of executives, employees, and managers who live a culture that believes and works for better. We wish Rusty the best.”
THE LARGER TEND
NextGen Healthcare isn’t alone in seeking new leadership in the last few months. Cerner announced that Brent Shafer, the CEO of Cerner, would be leaving three years after he succeeded Neal Patterson as EHR giant. Start a hunt for a new chief executives . (Cerner has since eliminated some 500 jobs From its workforce.
Healthcare IT News features editor has written a case story about how NextGen Otto telehealth platform helped a healthcare system boost provider and patient satisfaction earlier in the month.
NextGen (NXGN), announcing Frantz’s departure, stated its financial outlook in FY 2022. NextGen (NXGN), predicted revenue between $574 to $584million and non-GAAP earnings for shares between $0.89 – $0.95.
Margolis stated, “Our confidence in the Company is founded in its remarkable operational capabilities. Rich history of delivering strong ambulatory care solutions, solid foundation of organic growth. New customer wins. Continued profitability and strong balance sheets.” Margolis.
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