Healthcare automation company Olive is selling its AI-enabled utilization management tool for payers to health information network Availity.
The deal marks another product divestiture for Olive. Axios first reported last fall the company was selling its population health and 340B management tools to healthcare AI company Rotera.
Those sales came several months after Olive announced it was laying off about 450 workers. At the time, CEO Sean Lane said “fast-paced growth and lack of focus” had strained the company’s resources and prevented it from acting quickly on key initiatives.
In a statement, Olive said the agreement to sell its utilization management product, which automates prior authorization approvals for payers, completes its pivot to focus on health systems.
“The utilization management product we created at Olive is a powerful demonstration of the power of artificial intelligence to transform healthcare. As Olive continues its strategic realignment toward automated revenue cycle solutions for health systems, we will continue delivering game-changing solutions through our AI-powered automation and intelligence products,” Lane said in a statement.
“The divestiture of the utilization management product to Availity will provide that product and the amazing team that supports it the laser focus needed to expand and flourish. We are excited to see how this will positively impact the healthcare ecosystem.”
Availity will take on the commercial contracts with Olive’s current customers and hire “key associates” with the business. The companies didn’t disclose financial details of the deal, but it’s expected to close in the coming weeks.
“This technology perfectly aligns with Availity’s vision of delivering omni-channel, multi-payer solutions to a fragmented healthcare data ecosystem. This game-changing solution will help our provider and health plan customers overcome the common barriers to ensuring timely care delivery, resource allocation and patient satisfaction,” Russ Thomas, CEO of Availity, said in a statement.
THE LARGER TREND
Founded in 2012 as CrossChx, Olive changed its offerings several times before landing on healthcare automation and workflow tools to cut down on the time workers need to spend on routine tasks.
The company raised multiple rounds in 2020. In 2021, Olive scooped up $400 million in investor dollars.
The purchase of Olive’s assets is the second recent acquisition for Availity. Last year, it bought Diameter Health, which develops technology for clinical data quality and interoperability.
Tina Manoharan will offer more detail in the HIMSS23 session “AI and Data Interoperability: A Symbiotic Relationship for Healthcare.” It is scheduled for Tuesday, April 18 at 4:15 p.m. – 5:15 p.m. CT at South Building, Level 4, room S401.