Health & Medical

New NextGen CEO tells shareholders: ‘Focus on the long run, not the previous’

David Sides, who was not too long ago appointed president and CEO of the ambulatory care vendor NextGen Healthcare, issued a letter to shareholders this previous week urging them to reject latest efforts from the corporate’s founder, Sheldon Razin, to introduce new director nominees.  

“I consider NextGen Healthcare has the weather of a profitable platform, an unimaginable group and an thrilling future. I respect Sheldon’s position as founder; nonetheless, it’s time to give attention to the long run, not the previous,” Sides wrote.  

“I’m satisfied that the Company is at an inflection level for accelerating progress and worth creation,” he wrote.  

WHY IT MATTERS  

Razin and the board of NextGen have been batting press releases backwards and forwards for weeks, largely centered on the nominations of recent board members.  

In early August, Razin and fellow director Lance Rosenzweig, issued a letter to stakeholders saying that Board Chair Jeffrey Margolis and his allies had established an “imperial boardroom tradition,” and that Margolis had presided over “years of poor efficiency.”  

NextGen then issued its personal collection of statements, calling his claims false and saying that he and Rosenzweig had been “obstructing the Board’s efforts to drive Board refreshment.” It additionally accused them of “conveniently excluding” messages that didn’t conform with their narrative.  

“The first time we realized that Shelly desired – and had secretly interviewed different candidates – was when he publicly introduced his various, management slate of administrators,” stated the corporate in an August 23 press launch.  

Sides, newly onboard from his earlier position at Teladoc Health, stated in his open letter to shareholders this previous Friday that he has no explicit perception into the backwards and forwards.  

“Having simply joined NextGen Healthcare on September twenty second, I should not have a firsthand view into the historic occasions that led as much as Sheldon’s proxy contest,” wrote Sides.   

“What I do know is that proxy fights are pricey, time-consuming and distract administration from what actually issues, which is why the NextGen Healthcare Board tried to work with Sheldon as a way to keep away from this combat,” he stated.

He inspired shareholders to vote for all proposals listed on a specific proxy card, “together with every of NextGen Healthcare’s extremely certified director nominees.”

“Prior to becoming a member of NextGen Healthcare as President and CEO, I frolicked inspecting the Company, its market alternatives and the methods by which we are able to do even higher. Engaging with members of administration and the Board of Directors, together with Sheldon Razin and Lance Rosenzweig, had been priorities as a part of this effort,” he wrote.

“My evaluation is that NextGen Healthcare is heading in a optimistic path for shareholders, shoppers and workers,” he added.  

THE LARGER TREND

NextGen has been dealing with its board drama since just a few months after the announcement this summer season that its former president and CEO, Rusty Frantz, could be stepping down.

But it is not the one well being IT firm making main management group strikes. Recently, Aaron Miri was named new chief digital and knowledge officer at Baptist Health; Zane Burke took over at Quantum Health; and Cerner named Dr. David Feinberg president and CEO.

ON THE RECORD  

“From my conversations, it’s evident that NextGen Healthcare’s Board and nominees are unbiased thinkers with the trade and governance experience that’s wanted to information the Company’s success. They, and I, need what’s finest for the Company, for you, and for all of our stakeholders,” wrote Sides.

Kat Jercich is senior editor of Healthcare IT News.
Twitter: @kjercich
Email: [email protected]
Healthcare IT News is a HIMSS Media publication.

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