WATERTOWN, Mass., June 6, 2018 /PRNewswire/ -- athenahealth, Inc. (NASDAQ: ATHN), a leading provider of network-enabled services for hospital and ambulatory customers nationwide, today announced that its Board of Directors has initiated a process to explore strategic alternatives. As part of this process, the Board will consider a sale, merger or other transaction involving the Company as well as continuing as an independent company. In addition, the Company announced that Jonathan Bush has stepped down as President, Chief Executive Officer and as a member of the athenahealth Board, effective immediately. Accordingly, in parallel to having discussions with third parties regarding a potential business combination, the athenahealth Board has initiated a search process to identify qualified CEO candidates. The Board's strategic exploration process is designed to maximize shareholder value and better position athenahealth to capitalize on its premier healthcare technology platform.

To support the Company's operations and ensure a smooth transition as the Board conducts its strategic review, Jeff Immelt, Chairman of athenahealth, has been appointed Executive Chairman, Marc Levine, Executive Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer, will assume greater day-to-day operational responsibilities and oversight, and current Board member Amy Abernethy, M.D., Ph.D., will be advising the Executive Leadership Team on data strategy within her role as a director.

Mr. Immelt said, "athenahealth is the most universally connected healthcare network in the country, and we believe there remains significant, unrealized value in the Company. To ensure athenahealth maximizes shareholder value and is best positioned to realize the full potential of its premier healthcare technology platform, the Board has authorized a thorough evaluation of strategic alternatives, including a potential sale or merger or continuing as an independent company under new leadership. We approach this process with an open mind and a commitment to continuing to strengthen the company - including its rich data asset, platform strategy, and culture of innovation. We are fully focused on serving the best interests of our shareholders, employees and clients."

Mr. Immelt continued, "On behalf of the Board, I want to thank Jonathan for guiding athenahealth to this point and for building an incredible team, which is deeply focused on our clients and on driving disruptive, positive change across the healthcare industry. The Board and Jonathan agree that this change in leadership is appropriate as athenahealth turns to its next chapter."

Mr. Bush said, "I believe that working for something larger than yourself is the greatest thing a human can do. A family, a cause, a company, a country – these things give shape and purpose to an otherwise mechanical and brief human existence. athenahealth is a near once in a life time example of such a thing. With that lens on, it's easy for me to see that the very things that made me useful to the Company and cause in these past twenty-one years, are now exactly the things that are in the way. I cannot imagine a single organization more loaded with potential to transform healthcare."

Lazard and Centerview Partners are acting as the Company's financial advisors, and Weil, Gotshal & Manges LLP is legal counsel to the Company. A leading executive search firm has been retained to assist with the CEO search process.

There can be no assurance that the review being undertaken will result in a merger, sale or other business combination involving the Company. athenahealth does not intend to make further announcements regarding the review unless and until the Board has approved a specific transaction or other course of action requiring disclosure.

Fiscal Year 2018 Outlook Affirmed
athenahealth is reaffirming its fiscal year 2018 financial guidance which was communicated on February 15, 2018 at its 2018 Investor Summit. Fiscal year 2018 guidance is prior to the impact of the new revenue recognition standard to allow for comparability against historical results. Fiscal year 2018 financial guidance is summarized in the following table:

Previous Revenue Standard

For the Fiscal Year Ending December 31, 2018

Forward-Looking Guidance

Financial Measures


GAAP Total Revenue

$1,310 million - $1,380 million

GAAP Operating Income

$108 million - $152 million

GAAP Operating Margin

8% - 11%

Non-GAAP Operating Income

$210 million - $235 million

Non-GAAP Operating Margin

16% - 17%


About Jeff Immelt
Mr. Immelt was appointed Chairman of athenahealth, effective February 7, 2018. Mr. Immelt is recognized for advancing digitization across industries, particularly healthcare enterprises and the healthcare industry at large.

Mr. Immelt was Chairman and CEO of GE from 2001 to 2017. During that time he focused on growth and creating new disruptive technologies. GE became a more global, technology leader with record market share in essential industries. He was also one of the first CEOs to recognize great industrial companies must be digital leaders.

Mr. Immelt is one of the most respected leaders in healthcare. He helped grow GE's Healthcare business from a $3 billion enterprise to a $20 billion respected innovator with unique assets and capabilities. GE Healthcare diversified its portfolio from imaging to life science and digital services, building leadership positions by delivering valuable solutions to providers and patients. Mr. Immelt also brings a deep understanding of system economics and patient outcomes given GE's position as a larger payer of healthcare benefits.

Mr. Immelt earned a B.A. degree in applied mathematics from Dartmouth College in 1978 and an M.B.A. from Harvard University in 1982.

About Amy Abernethy, M.D., Ph.D.
Amy Abernethy, M.D., Ph.D. has served as a member of the athenahealth Board of Directors since October 2013.

Since July 2014, Dr. Abernethy has served as chief medical officer, chief scientific officer and senior vice president of oncology at Flatiron Health, Inc., a healthcare technology company that is a member of the Roche Group. Before joining Flatiron, she was a professor of medicine in the Duke University School of Medicine from November 2008 to July 2015 and ran the Center for Learning Health Care in the Duke Clinical Research Institute from March 2012 to July 2015. She was also director of the Duke Cancer Care Research Program in the Duke Cancer Institute between 2008 and 2015. She also holds the title of adjunct professor of medicine in the Duke University School of Medicine, and previously held a number of progressive faculty and clinical roles at Duke University and Flinders University of South Australia.

Dr. Abernethy received her B.A. in biochemistry from the University of Pennsylvania and her M.D. from the Duke University School of Medicine. She also received a Ph.D. from Flinders University of South Australia.

About Marc A. Levine
With nearly 30 years of financial and operational expertise, Mr. Levine joined athenahealth in December 2017 and has served as Executive Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer since January 2018.

Prior to athenahealth, Mr. Levine most recently served as the executive vice president and CFO of JDA Software Group, Inc., a privately-held supply chain provider of software and SaaS solutions, where he led the company's finance and accounting, legal, workplace, purchasing and information technology activities. Prior to JDA, Mr. Levine held several senior financial leadership roles over his 25-year career at Hewlett Packard Company, including senior vice president and corporate controller, senior vice president of finance and chief operating officer for HP's Enterprise Services Business segment, and general manager of Southeast Asia for HP's medical products business.

Mr. Levine received his B.S. from Emory University and his M.B.A. from the University of Connecticut School of Management.


About athenahealth, Inc.
athenahealth partners with hospital and ambulatory customers to drive clinical and financial results. We offer medical record, revenue cycle, patient engagement, care coordination, and population health services. We combine insights from our network of 114,000 providers and 110 million patients with deep industry knowledge and perform administrative work at scale.