Circulo Health, a startup built to use technology to manage the care of Medicaid patients, has let go a quarter of its workforce, its president said in a June 17 LinkedIn post.
"This difficult decision stems from market trends that led us to rethink our original focus on creating a new kind of Medicaid insurance company," Circulo Health's Jeff Grahling wrote. "Many of the employees who are leaving us were hired to support that purpose, which we are no longer pursuing."
Instead, he wrote, the company will invest in infrastructure to serve people with intellectual and developmental disabilities and expand its home and community based-services offerings in Ohio, where it currently operates.
Circulo Health is a spinoff company of Olive AI, a healthcare automation startup that recently froze hiring, as Becker's reported June 9. Both companies are based in Columbus, Ohio, which Sean Lane, CEO of both firms, called the "emerging insurtech capital of the U.S."
The move continues a trend of health tech startup layoffs amid market uncertainty. Circulo Health raised $50 million in February 2021, when it said it planned to "disrupt Medicaid."