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Athenahealth launches comprehensive review, plans to split chairman, CEO roles

Athenahealth Inc. is conducting a strategic review of its operational and financial strategy, leadership and governance.

With the help of a consulting firm, the board and management have commenced a comprehensive review of athenahealth's operations, cost structure and capital allocation. The review will include all parts of the company's business, including sales and marketing, research and development, general and administrative, service operations, product portfolio and organizational structure.

About $100 million in cost-savings opportunities have been identified that will drive efficiency and targeted investment in the company's hospital and network services businesses, the company said. Additional information about these strategic initiatives, including plans to significantly increase operating margins in 2018 and thereafter, will be discussed when the company releases its third-quarter earnings in October.

Additionally, the board plans to create a new position of president. A search firm has been retained to fill the roles of president and CFO at the company. Athenahealth CFO Karl Stubelis stepped down in July and John Kane was named interim CFO.

The board also intends to separate the roles of chairman and CEO, and is working to recruit an independent chairman. A search process to appoint an additional independent director has also been started, the company said.