No numbers available for local athenahealth layoffs

Severance packages offered
By Carolyn Zachary | Apr 25, 2019
File photo The Belfast office of athenahealth.

Belfast — Two months after its acquisition and subsequent merger with another health care IT company, athenahealth announced Tuesday it would consolidate operations and lay off less than 4 percent of its total workforce across all its offices.

A company spokesperson declined to provide specific information on the impact among the company's 900 employees in Belfast, but did say severance packages were offered to those laid off.

Watertown, Massachusetts-based athenahealth provides cloud-based software to doctors and hospitals. Prior to the Tuesday layoffs, its worldwide workforce numbered 5,000.

In February, athenahealth went private after it was acquired by two private equity firms, Veritas Capital and Evergreen Coast Capital. In conjunction with that $5.7 billion deal, athenahealth then merged with Seattle-based Virence Health Technologies, formerly the Value-Based Care Group of GE Healthcare. GE had sold that unit to Veritas Capital in July 2018.

The athenathealth acquisition and merger followed a year of upheaval for the company, which included the resignation of Jonathan Bush, its founder and chief executive officer.

In a statement provided today to The Republican Journal, athenahealth said:

“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.”

 

 

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