What You Should Know:
– Olive, a healthcare automation company today announced the acquisition of Healthcare IP, an integrated partner of healthcare provider and payer organizations, advocating data transparency and user experience in the revenue cycle. Financial details of the acquisition were not disclosed.
– Healthcare IP is a clearinghouse that has been streamlining payment management since 2013 for top hospitals and health systems across the United States to help manage their insurance processing.
– With more than 900 U.S. hospital customers, Olive adds a clearinghouse to the Internet of Healthcare for providers and payers to ease administrative costs with automation. Olive’s clearinghouse solution is now available for customers nationwide.
Role of Clearinghouses
Clearinghouses have traditionally served a role in the proper exchange of insurance claims and vital health and benefits information between providers and payers. However, existing claims processes can place a high burden on health systems, with an estimated one in seven insurance claims rejected in the U.S., forcing rework and delays in reimbursement. Clearinghouses have not innovated to keep pace with the volume, velocity, and variety of transactions demanded by providers today, especially as the amount of healthcare data skyrockets, with 463 exabytes of data expected to be created each day by 2025.2
Healthcare IP Acquisition Impact for Olive
By connecting the healthcare ecosystem, Olive shares knowledge and data across providers, patients, and payers to unleash administrative spending and improve patient care. Olive’s new clearinghouse solution will leverage automation to deliver powerful intelligence and efficient transactions to providers and payers — fostering greater collaboration, generating immediate value, and minimizing administrative expenses.
The scale and depth of intelligence delivered with Olive’s clearinghouse solution will further power Olive’s ability to pay providers for care in real-time via Olive Assures and unlock new capabilities and insights for providers and payers alike. With a business model focused on value and business intelligence, hospitals and health systems can say goodbye to costly transaction fees and focus on what matters most: patient care.
“We see this acquisition as a critical next step toward delivering the transformation healthcare desperately needs. Clearinghouses are foundational to the proper networking of the entire industry, but they haven’t been innovated in years,” said Sean Lane, CEO of Olive. “We want to change how clearinghouses work with provider organizations, so we developed a new model. We won’t get paid unless the providers get paid. This puts customers first. Providers deserve low-cost, high-value claims functionality and we’re excited for Olive to be that partner.”