Circulo Health is preparing major layoffs

Circulo Health, an Ohio-based startup of healthcare technology, plans to lay off up to 50% of its staff this week amid a major shift in its business plan, Axios has learned from four sources.

Why it’s important: Circulo is one of a small but growing number of technology-driven healthcare companies focusing on people using Medicaid, a population that the vast majority of digital healthcare entrepreneurs and investors have long ignored.

Link: The Columbus, Ohio-based startup is co-founded and led by Sean Lane, who also founded and heads the healthcare company Olive AI. Olive recently saw the departure of more than 20 senior executives, Axios reported earlier this month.

Looking back: In January, Circulo acquired primary care startup Huddle Health.

  • The following month, Circulo said it raised $ 50 million in Series A funding from Drive Capital, General Catalyst, Oak HC / FT and SVB Capital.
  • The company currently has between 300 and 350 employees, the sources say.

What they say: Sources, including some current employees, say Circulo has undergone some major shifts to its business model, including plans to build a Medicaid-focused insurance product.

  • Instead, Circulo now focuses almost exclusively on home care for people with intellectual and developmental disabilities (IDD), the sources say.
  • “The program they decided to concentrate on is IDD,” a current employee tells Axios, “so in other words, they put everything else aside.”

Circulo has not responded to a request for comment.

Leave a Comment