Situational awareness: With his $28 billion Cerner purchase officially complete, Oracle’s Larry Ellison yesterday launched a health care moonshot to end all moonshots: a national, anonymized database of health records.
- Given how many giants (Google, Microsoft) have already failed to complete such a quest, we expect it to take some time. Now on to today’s news.
Health technology company Olive AI is delaying the release of compensation letters to employees, according to a memo obtained by Axios. The letters were due to be distributed by the end of this week and should instead be sent “early July”, the memo said.
Why is this important: The delay comes amid an exodus of employees from Olive, with Axios reporting that more than 40 employees have left since April. Several of those who resigned held leadership positions.
To note : Axios previously reported that Olive, a fast-growing startup that once carried a $4 billion valuation, froze hiring last month — its second hiring hiatus this year. Sources who spoke to Axios said the freeze was due to budget issues.
Details: Delayed severance letters could also exacerbate employee retention issues, two sources told Axios.
- The letters were supposed to include pay increases for some, based on the company’s move to a national compensation method, the sources said.
Background: Olive CEO Sean Lane founded the company with a vision to use AI to eliminate repetitive, manual tasks in healthcare. Since then, he has raised nearly $1 billion in funding and acquired two leading health technology companies.
- Axios reported in April that the company was not delivering what it promised its customers and that most of its customers were only receiving a fraction of the savings guaranteed to them.
What they say : In response to Axios’ request for comment on this story, a spokesperson for Olive said the company is “paying close attention to the seismic shifts occurring in the global market and taking proactive steps to ensure that we are able to fulfill our mission”.