Allscripts Healthcare Solutions Inc. (MDRX) disclosed in a regulatory filing that it plans to consolidate North American site to create a more simplified and efficient organization that is aligned more closely with its business priorities. The Plan includes closure of twelve offices and one warehouse.
The company said in the filing that it is also implementing changes to corporate operating models intended to reduce costs associated with product solutions development. The costs of implementing these changes primarily consist of employee severance and relocation costs, and lease exit costs.
The estimated pre-tax costs to implement these changes consist of employee severance of approximately $10 million, relocation costs of up to approximately $16 million, and lease exit costs totaling approximately $3 million.
The company estimates that primarily all charges will be recorded in the first quarter of 2013 with the exception of lease exit costs which are expected to be recognized in the third quarter of 2013. The company expects to complete the actions by the end of 2013.
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