Changing strategy and playing musical chairs at the CEO level caused a drop in the stock price for Allscripts, the struggling electronic health records company based n Chicago. The board announced earlier this week that they were placing Paul Black in the role of CEO. Black was formerly the COO at Cerner, and was already on the board at Allscripts. Black replaces Glenn Tullman, who had been the longtime CEO at Allscripts.
The change in CEOs is big news, but even bigger news is the board’s other announcement. In a major strategic turnaround, Allscripts is no longer up for sale. Rumors had been floating that Blackstone Group was bidding on Allscripts, but apparently, the two parties couldn't reach agreement on price before the change in strategy was announced. Allscripts stock dropped to $9.14 shortly after the announcement, an almost 15 percent loss in value, signalling deep concern over the abrupt change in strategy.