Veradigm, a leading health IT company, recently made headlines with the release of updated financial results after facing challenges with compliance and reporting requirements. The firm had been delisted from Nasdaq due to internal control failures, causing a delay in financial reporting.
In a significant move, Veradigm issued its full year report for 2022 and restated filings for 2020, 2021, and the first three quarters of 2022. This update came after a prolonged period of not reporting financials to regulators. The company also provided unaudited financial ranges for 2023 and 2024, along with guidance for the current year. However, executives mentioned that Veradigm won’t be current on its financial reporting until 2026.
The journey to rectify financial reporting discrepancies has been a challenging one for Veradigm, formerly known as Allscripts. The company had to address issues related to accounting processes and software tools, eventually leading to its delisting from Nasdaq. Despite considering strategic options such as a sale or merger, no deal materialized, and the company continued its efforts to bring its financials up to date.
The release of the 2022 annual report revealed $588 million in revenue and an $86.4 million net loss for Veradigm. The extensive audits required to finalize the report were complicated by internal control deficiencies. The company also corrected previous financial results, addressing overstatements and understatements in revenue and net earnings for various years.
Looking ahead, Veradigm provided revenue estimates for 2023 and 2024, expecting steady growth in the coming years. The addition of new directors to the board, including Jonathan Sacks and Bruce Felt, brings fresh perspectives and expertise to the company. Lou Silverman, who recently joined as a director, will take on the role of chairman.
Overall, the latest developments mark an important milestone for Veradigm as it navigates the challenges of financial reporting and sets the stage for future growth and stability. The company’s commitment to transparency and accountability will be crucial in rebuilding trust with investors and stakeholders.
