Health Services, Artificial Intelligence

Healthcare process automation startup Olive AI lands $1.5B valuation

Olive AI, a startup automating routine administrative tasks for health systems, raised another $225 million in funding, bringing the total raised this year to $385 million.

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It’s been a busy year for Olive AI, the Cleveland-based startup that automates routine administrative tasks for hospitals. Not long after raising $106 million in funding, the company closed a $225.5 million round led by Tiger Global Management, giving it a $1.5 billion valuation.

Since the start of 2020, the company has raised a total of $385 million, with backers including General Catalyst, Drive Capital and GV.

CEO Sean Lane, a former NSA agent, founded the company in 2012, after realizing that most systems in healthcare often aren’t connected. Traveling between hospitals, he noticed a “sea of cubicles” with employees doing the same tasks over and over again.

“In reality, it was like an assembly line,” he said in a previous interview. “Humans were under this mountain of work that they never could get done because of that.”

The solutions handles repetitive tasks in billing, supply chain and pharmacy. For example, it’s often used to manage prior authorizations, vendor contracts and inventory. Some of its customers include MedStar, MemorialCare, Gunderson Health System and Yale New Haven.

Most recently, the company rolled out a solution to surface information to assist with day-to-day tasks — such as surfacing recent patient information, verifying their insurance details and contact information while they’re registering for an appointment.

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A Deep-dive Into Specialty Pharma

A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.

The company recently hired a new chief financial officer and chief marketing officer to help lead its expansion. It also plans to use the new funds to expand its software capabilities.

“In the year ahead, we’re setting our sights on the big picture — investing in R&D to bring more solutions to hospitals and health systems that not only disrupt the industry, but also help to fix a broken system at a critical time for humanity,” Lane said in a news release.

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