Watertown, Massachusetts-based athenahealth, Inc., a provider of cloud-based network services to the healthcare industry, has announced a major reduction in force of 200 employees as a consequence of its post-acquisition merger with the Seattle, Washington-based spinoff from GE Healthcare, Vitence Health. The decision appears to be driven by activist investors who were part of a complex financial strategy that saw athenahealth being acquired by Veritas and Evergreen Coast Capital for $5.7 billion. As one would expect, any acquisition is normally followed by a restructuring to consolidate and streamline duplicative functions and positions.
A company spokesperson noted, “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."
Look for additional cost-cutting and personnel changes to follow.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?