AI-powered healthcare automation firm Olive AI heads towards a sunset. Following the acquisition of its core business units, the firm will now “wind down the remainder of its business”. CEO Sean Lane explains that Olive AI’s shutdown is due to tough market conditions as a reflection of a wider economic downturn. How is the AI software provider making good for strategic “missteps” and meeting customer expectations even during a reported bankruptcy process?
Is Olive AI shutting down?
Yes, Olive AI is shutting down. The AI-native firm, based in Columbus, Ohio, has set an impressive pace since launch in 2017. Healthcare firms chose to partner with Olive on the premise that “revenue cycle in healthcare has been broken for too long.” As a solution to this problem, Olive AI would deliver “revenue cycle automation and intelligence to enable quality patient experiences and drive the financial health of health systems.”
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Raising $902 million USD in 2020 from General Catalyst, Ascension Ventures, Oak HC/FT and SVB Capital, investors had high confidence in a multi-billion valuation. Sadly, that investment is not meeting investor expectations three years down the line.
At the heart of the announcement, is a statement made via the company website regarding the “heart of the business” itself. Having already sold on its “Clearinghouse and Patient Access business units to Waystar and its Prior Authorization business unit to Humata Health”, existing patients will continue to receive service from other institutions that Olive deems worthy of the responsibility.
Today, Olive is announcing that it has sold its Clearinghouse and Patient Access business units to Waystar and its Prior Authorization business unit to Humata Health. These products represent the heart of Olive’s business and we believe this decision will provide important stability and a bright future for these customers. With the sale of our core business units, Olive will wind down the remainder of its business.
Olive AI
Olive AI acquisition history — Verata Health and Empiric Health
Prior to this sunsetting of the entire business, Olive had acquired Verata Health and later Empiric Health, an AI-native “clinical analytics and service company that focuses on identifying unwarranted clinical variation.” It appears that the healthcare automation company no longer has the capabilities or resources to drive fast-paced growth in the headwinds of a difficult industry landscape.
What is a clearinghouse in healthcare?
In the healthcare industry, a clearinghouse is “an institution that electronically transmits different types of medical claims data to insurance carriers. Types of claims data include pharmacy claims, dental claims, DME claims, inpatient and outpatient claims and more.”
