Availity, a health IT company, has agreed to acquire Olive AI’s utilization management division.
Why it matters: Following a series of divestitures and layoffs, Olive is down to one business line.
The agreement backs up Axios’ February report on Olive’s plans to sell the division, which is one of two remaining business lines listed on the company’s website.
Details of the transaction: Availity, which is backed by Novo Holdings, agreed to buy Olive’s utilization management (UM) service line, which represents the company’s payer-facing prior authorization business.
UM includes tools for accelerating the largely manual process of green-lighting treatment.
As part of the transaction, Availity will assume Olive’s current UM commercial contract and hire division-specific staff.The deal’s terms were not disclosed.
Where it currently stands: According to Axios, the majority of Olive’s remaining business is Autonomous Revenue Cycle (ARC), its provider-facing tools for prior authorization, notice of admission, claim status coverage identification, and eligibility.
Quick recap: Last fall, Olive announced plans to sell a different set of assets to Rotera in exchange for a revenue share.
This included the company’s population health management tools as well as the 340B Medicaid and Medicare drug discount program.