Today: Jul 20, 2024

$6 billion healthcare-AI startup, staff cuts despite ‘aggressive’ hiring vow.

7 months ago

Commure, a healthcare-AI startup backed by General Catalyst, announced staff layoffs following its $6 billion merger with Athelas in October. The merger resulted in the creation of Commure, which initially stated plans to hire aggressively. However, in a leaked email obtained by Business Insider, Commure CEO Tanay Tandon announced the company’s decision to cut staff that were deemed redundant or no longer needed. The email did not specify the number of individuals affected by the layoffs.

Commure offers a common data language for health systems to simplify tasks such as patient transfers, while Athelas develops software for AI-powered revenue cycle management. The merged company aims to integrate Athelas’ software with Commure’s data platform to serve its health-system clients. Tandon previously suggested that Commure would be a major hirer in the healthcare and software sectors, potentially offering employment opportunities to individuals affected by layoffs in the healthcare industry.

Prior to the merger, Commure and Athelas both had at least five years of cash runway, according to Tandon. The company plans to go public within the next two to three years.