Olive to sell payer utilization management tool to Availity

Healthcare automation firm Olive is promoting its AI-enabled utilization administration software for payers to well being info community Availity.

The deal marks one other product divestiture for Olive. Axios first reported final fall the corporate was promoting its inhabitants well being and 340B administration instruments to healthcare AI firm Rotera. 

These gross sales got here a number of months after Olive introduced it was shedding about 450 employees. On the time, CEO Sean Lane mentioned “fast-paced progress and lack of focus” had strained the corporate’s assets and prevented it from performing shortly on key initiatives. 

In a press release, Olive mentioned the settlement to promote its utilization administration product, which automates prior authorization approvals for payers, completes its pivot to concentrate on well being programs. 

“The utilization administration product we created at Olive is a robust demonstration of the ability of synthetic intelligence to rework healthcare. As Olive continues its strategic realignment towards automated income cycle options for well being programs, we are going to proceed delivering game-changing options via our AI-powered automation and intelligence merchandise,” Lane mentioned in a press release.

“The divestiture of the utilization administration product to Availity will present that product and the superb group that helps it the laser focus wanted to increase and flourish. We’re excited to see how this can positively influence the healthcare ecosystem.”

Availity will tackle the industrial contracts with Olive’s present clients and rent “key associates” with the enterprise. The businesses did not disclose monetary particulars of the deal, however it’s anticipated to shut within the coming weeks. 

“This know-how completely aligns with Availity’s imaginative and prescient of delivering omni-channel, multi-payer options to a fragmented healthcare information ecosystem. This game-changing resolution will assist our supplier and well being plan clients overcome the widespread obstacles to making sure well timed care supply, useful resource allocation and affected person satisfaction,” Russ Thomas, CEO of Availity, mentioned in a press release. 

THE LARGER TREND

Based in 2012 as CrossChx, Olive modified its choices a number of occasions earlier than touchdown on healthcare automation and workflow instruments to chop down on the time employees have to spend on routine duties.

The corporate raised a number of rounds in 2020. In 2021, Olive scooped up $400 million in investor {dollars}.

The acquisition of Olive’s property is the second latest acquisition for Availity. Final yr, it purchased Diameter Well being, which develops know-how for scientific information high quality and interoperability.

Tina Manoharan will supply extra element within the HIMSS23 session “AI and Information Interoperability: A Symbiotic Relationship for Healthcare.” It’s scheduled for Tuesday, April 18 at 4:15 p.m. – 5:15 p.m. CT at South Constructing, Stage 4, room S401.