The new chief executive officer of Misys, calling the financial results of its Misys Healthcare unit in Raleigh “unacceptable,” is shaking up its management team.

Tom Skelton, CEO of Misys Healthcare and a director of the company, is resigning from both positions, Misys said in a statement from its London headquarters.

Misys Healthcare employs some 970 people at its North Raleigh headquarters.

While Skelton will stay in place for a while, Misys also named a new general manager for the healthcare group.

“Our Treasury and Capital Markets business is growing well as a result of its revamped product portfolio and Core Banking is making some progress. However, in Healthcare, our performance was unacceptable and we have taken action to address this – early indications are positive and we will take further action if necessary,” CEO Mike Lawrie said in a video interview released by Misys.

"It is clear to me since joining Misys that given not only the growth opportunities in the core markets in which we operate, but also internal initiatives we can pursue, we have the potential to deliver much greater performance. As I outlined in December, we are in the process of developing a full turnaround plan for Misys to deliver value for our customers, employees and shareholders. I’ll be saying more about our plans in early March."

The Healthcare group was profitable, earning some $70 million in 2006, but that was a decline of approximately $10 million from 2005.

As recently as a few months ago, Skelton was considered a candidate for the CEO post in Misys. He had been offered a bonus of nearly $2 million to stay with the company, but the offer was rejected by stockholders.

Skelton, the CEO of the healthcare group since 2000, was named to the Misys board in 2002. He has more than 20 years of experience in the healthcare industry.

Misys management in London was shaken up late last year when a bid to take the company private by founder and CEO Kevin Lomax failed. Lomax left the company, and Lawrie was hired to replace him.

Misys Healthcare, which provides electronic health records and other software for medical practices, works with more than 110,000 doctors, 18,000 medical practices, 1,200 hospitals and 600 homecare providers in the U.S.

“The Healthcare business was frankly disappointing,” Lawrie said. “I would classify it as unacceptable. We saw a drop-off in the physicians business, particularly in the mid-range and the low-end physicians. What I mean by that is smaller doctor practices – one to three physicians, up to eight or nine physicians. We have identified some of the root causes of that shortfall in revenue and decline in order intake, and we have taken some actions, and I would say that in the month from November into December, we’d begun to see some improvement. I think it’s too early to call it a turnaround, but at least some actions have been taken.”

The management shakeup also led to the departure of finance director Howard Evans and corporate development director Jasper McMahon from the Misys management team in London. Evans will leave in May.

Lawrie headed the ValueAct Capital investment group, which held a 9.5 percent stake in Misys, before he took over the company.

Skelton will not leave immediately, Misys said in a statement. “The Board of Misys has accepted his resignation and has agreed with Tom that he will continue with the business for a period to ensure a successful transition to his successor,” the firm said.

Paul Lewis, who had just joined Misys healthcare as senior vice president of sales and services, was named general manager of the healthcare group. His most recent position was as CEO of Revivio, a data protection solutions provider. He also at one time was worldwide general manager of IBM’s Global Services Consulting Group.

Misys, which was founded in 1979, employs some 6,000 people worldwide.