On the provider side of Veradigm’s business, Langan said customer attrition was particularly painful late last year among large physician practice groups. In addition, he said, a lull in sales early in 2024 meant less new revenue was being generated late in the year to offset customer losses.
Looking to 2025, Langan added that he is upbeat about the “good momentum” in sales to providers of EHR and clearing-house services so far this year. The story is similar, he added, on the payer and life sciences of the business.
“’25 is looking promising but we still have some work to do, particularly on the non-recurring type of revenue that comes within our payer and life science business,” Langan said.
Amid efforts to re-establish some top-line momentum, Langan and Westerfield also are continuing to work on cleaning up Veradigm’s past financial statements and beefing up internal controls. Westerfield said that process should be completed at some point in 2026; the company recently filed its restated 2022 annual report, which cover its results from 2020 to 2022, and is now working on audits of its 2023 and 2024 numbers.
Shares of Veradigm (Ticker: MDRX) fell about 9 percent to $4.60 March 19 on executives’ financial update. In midday trading a day later, they were changing hands at $4.50. They have now lost more than half their value over the past six months, leaving the company with a market capitalization of about $485 million.