Athenahealth Targets About $100 Mln In Cost Savings - Quick Facts

(RTTNews) - Athenahealth, Inc. (ATHN) a provider of network-enabled services for hospitals and physician groups, said its board of directors and management team are conducting a strategic review of the company's operational and financial strategy, leadership and governance.

The company intends to implement a series of initiatives that will sharpen its focus, generate cost savings and reinvest in its highest-value growth areas.

In conducting its review, Athenahealth has identified approximately $100 million in cost-savings opportunities that will drive efficiency and targeted investment in the company's fast-growing hospital and network services businesses.

Athenahealth said it will provide additional information regarding details of these strategic initiatives, including plans to significantly increase operating margins, in 2018 and thereafter, by its third quarter 2017 earnings release anticipated in October 2017.

Athenahealth also said its board intends to augment its senior management structure to establish the role of president. The president will be responsible for the execution of athenahealth's business operations and will report to Athenahealth CEO, Jonathan Bush.

The Board has retained a leading search firm to fill the president and CFO roles promptly.

Further, the Board is taking steps to strengthen its governance profile. The Board plans to separate the roles of chairman and CEO and is working to recruit an independent chairman. In addition, the Board has begun a search process to appoint an additional independent director.