Veradigm, a prominent health IT company, is undergoing significant changes to its board of directors following the completion of a strategic review. This shake-up comes as part of an agreement with investor Kent Lake PR, who owns approximately 4.2% of the company’s shares. As a result of this deal, Veradigm has expanded its board from five to six members, appointing Vinit Asar, former CEO of orthotic and prosthetic firm Hanger, and Louis Silverman, CEO of telehealth company Hicuity Health, as new independent directors.
In addition to these appointments, Veradigm will be adding two more members to its board, pending approval from Kent Lake. The company is also implementing an “orderly refreshment of the Board,” allowing the investor to designate replacement directors if necessary. Several board members have already resigned, including Elizabeth Altman and Jonathan Judge, with Chairman Greg Garrison set to depart after the filing of the annual report for the 2022 fiscal year.
Veradigm’s board restructuring comes in the wake of financial reporting challenges that have plagued the company in recent years. The health IT vendor has not filed a financial report since November 2022, citing internal control failures that led to a delisting from the Nasdaq stock exchange. Despite this setback, Veradigm announced plans to review strategic alternatives, including a potential sale of the firm. However, the company ultimately decided not to pursue a sale after receiving preliminary indications of interest from five bidders but no final proposals.
The decision to end the strategic review without a sale indicates that Veradigm believes its value is greater than what was offered by potential buyers. Analysts speculate that the company may focus on updating its financial reports and relisting to create more value in the long term. As Veradigm navigates these changes, it remains committed to its mission of providing innovative health IT solutions to improve patient care and outcomes.
