Athenahealth to lay off nearly 4% of employees

Watertown, Mass.-based health IT software company athenahealth will lay off nearly 4 percent of its global workforce, Boston Herald reports.

Athenahealth did not confirm the exact number of employees who will be affected by the layoffs, but the number is estimated at around 200 of athenahealth's approximately 5,000 employees. The company confirmed its total workforce count in November, according to the report. News of the layoffs comes two months after the company went private under new owners Veritas Capital, a private equity firm, and Elliott Management-affiliate Evergreen Coast Capital. The companies completed their $5.7 billion acquisition of athenahealth Feb. 11.

Under the new ownership, athenahealth was combined with Virence Health, a value-based care business that Veritas acquired from GE Healthcare in 2018. The integration of the companies has left athenahealth to reorganize the company's resources, an athenahealth spokesperson told the Boston Herald.

"As with any large transaction of this size, there are overlaps in functional areas," the spokesperson said. "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."

Editor's note: Becker's Hospital Review reached out to athenahealth for comment and will update as more information is available.

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