Aug 1- Healthcare software provider Athenahealth Inc said it would conduct a strategic review of its operations, more than two months after investor Elliott Management said it planned to push operational and strategic changes at the company. Co-founder Jonathan Bush, a cousin to former U…
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Aug 1 (Reuters) – Healthcare software provider Athenahealth Inc said it would conduct a strategic review of its operations, more than two months after investor Elliott Management said it planned to push operational and strategic changes at the company.
The company said the review takes into account the input of its shareholders, who represent a significant majority of outstanding shares.
Hedge fund Elliott Management disclosed a 9.2 percent stake in the company in May.
Elliott Management did not immediately respond to a request for comment.
Athenahealth said it plans to separate the roles of chairman and chief executive and is working to recruit an independent chairman.
Co-founder Jonathan Bush, a cousin to former U. S. President George W. Bush, will remain as the chief executive of the company.
Athenahealth said it would also establish the role of president, who will be responsible for the execution of the company’s business operations.
The company said it has started a comprehensive review of its operations, cost structure and capital allocation and has identified about $100 million in cost-savings opportunities.
Shares of the company were little changed before the bell on Tuesday. (Reporting by Ankur Banerjee in Bengaluru; Editing by Supriya Kurane)
