Healthcare startup Olive, which experienced rapid growth in 2020 and 2021, is now winding down its operations. The company’s rise was fueled by the digital health funding boom and the demand for automation during the COVID-19 pandemic. By 2021, Olive’s AI was operational in over 900 hospitals across more than 40 U.S. states. However, the company has faced challenges, leading to a significant decline in its operations. Olive has sold its clearinghouse and patient access business units to Waystar and its prior authorization business unit to Humata Health.
The company’s CEO, Sean Lane, acknowledged “missteps” in Olive’s strategy and cited challenges like rapid growth, lack of focus, and strained resources. Olive’s decline is reminiscent of other health tech “unicorns” that have shut down this year.