Health IT company Availity to acquire Olive AI business line
Health IT company Availity agreed to acquire the utilization management division of health automation startup Olive AI.
Why it matters: Olive has one business line left after a series of divestitures and layoffs.
- The deal confirms Axios' February reporting on Olive's plans to sell the division, which represents one of two remaining business lines advertised on the company's website.
Deal details: Novo Holdings-backed Availity agreed to purchase Olive's utilization management (UM) service line, which represents the company's payer-facing prior authorization business.
- UM comprises tools for speeding the mostly manual process of green-lighting treatment.
- As part of the transaction, Availity will assume the commercial contract with Olive’s current UM customers and hire staff dedicated to the division.
- Terms of the deal were not disclosed.
Where it stands: The bulk of Olive's remaining business includes Autonomous Revenue Cycle (ARC), its provider-facing tools for prior authorization, notice of admission, claim status coverage identification, and eligibility, Axios previously reported.
Catch up quick: Olive last fall outlined plans to sell a different set of assets to sibling company Rotera in exchange for a revenue share.
- That divest included the company's tools for population health management and the Medicaid and Medicare drug discount program known as 340B.