Health IT

Athenahealth lays off employees after sale to Veritas Capital and Elliott Management

A source familiar with the situation told MedCity that less than 4 percent of the company’s total corporate workforce across all offices was let go.

Less than three months after Veritas Capital and Elliott Management affiliate Evergreen Coast Capital completed their $5.7 billion acquisition of athenahealth, the EHR vendor has laid off employees.

A source familiar with the situation told MedCity that less than 4 percent of the company’s total corporate workforce across all offices was let go.

According to the athenahealth website, the health IT company has slightly more than 5,000 employees.

The sale of athenahealth to Veritas and Evergreen was initially announced in November. At that time, the organizations revealed their intent to combine athenahealth with Virence Health, the former GE Healthcare value-based care unit Veritas bought in 2018.

Regarding the layoffs, a spokesperson for athenahealth sent the following statement via email:

We recently launched the transformation of our business and are reorganizing our resources as we integrate athenahealth and Virence Health into a single company with a sharpened strategic focus and unified sense of purpose and direction. As with any large transaction of this size, there are overlaps in functional areas. While we’ve had to make some difficult decisions, we have implemented a new organizational model that enables faster decision making, decreases bureaucracy and consolidates capabilities so we can best deliver value to the 160,000 providers on our network.

This isn’t the first time the company has laid off employees. In the fall of 2017, athenahealth announced plans to cut 9 percent of its workforce and close its offices in San Francisco and Princeton, New Jersey.

Photo: MarsBars, Getty Images