NextGen looking for a new CEO
The board of directors of NextGen Healthcare has created new executive leadership board oversight committees as the ambulatory health IT developer starts looking for a new CEO.
WHY IT MATTERS
NextGen announced Monday afternoon that Rusty Frantz, who served as president CEO of the company for more than six years, has “agreed to a mutual separation” would step down from those roles, as well as from the NextGen board, effective immediately.
“I’m incredibly proud of all we have accomplished over the past six years,” said Frantz in a statement. “With the talent dedication I have seen firsthacross the organization, I am equally confident in NextGen Healthcare’s continued success.” He added: “This transition enables me to put 100% of my focus on my most important priority – my family.”
An executive leadership committee will lead NextGen Healthcare on an interim basis as the company enlists executive search firm Spencer Stuart to find a new CEO.
The committee will include:
- Chief Financial Officer James Arnold, Jr.
- EVP of human resources Donna Greene.
- Chief Technology Officer David Metcalfe.
- Newly-hired Chief Growth Strategy Officer Sri Velamoor (once he joins the company next month).
The ELC will work with a new board oversight committee, comprising independent directors Jeff Margolis Craig Barbarosh, non-executive chairman vice chairman of the board, respectively.
“On behalf of the board, we thank Rusty for leading NextGen Healthcare through a successful operational reinvention,” said Margolis. “Today the company benefits from the highest-quality solution offerings in ambulatory healthcare, best-in-class customer service satisfaction levels, an exceptionally engaged team of executives employees who daily live a culture that believes in better. We wish Rusty the best.”
THE LARGER TREND
NextGen Healthcare isn’t the only major health IT player to opt for new leadership in recent months, of course. Cerner announced in May that it would part ways with CEO Brent Shafer three years after he’d succeeded the EHR giant’s late founder, Neal Patterson, launch a search for a new chief executive. (Cerner has since eliminated some 500 jobs from its workforce.)
Earlier this month, Healthcare IT News features editor wrote a case study describing how one health system boosted patient provider experience with help from NextGen’s Otto telehealth platform.
ON THE RECORD
In announcing Frantz’s departure, NextGen (NXGN) affirmed its financial outlook for FY 2022, predicting revenue between $574 $584 million non-GAAP earnings per share range between $0.89 $0.95.
“Our confidence is founded in the Company’s remarkable operational capabilities, rich history of delivering strong innovative ambulatory health solutions, solid baseline of organic growth, new customer wins, ongoing profitability strong balance sheet,” said Margolis.