NantHealth, a personalized healthcare company, announced it is cutting 300 jobs during its second-quarter earnings call last week.
The company will conduct layoffs and transfer staff to Allscripts Healthcare Solutions, which recently entered into an agreement to buy NantHealth’s provider and patient engagement solution business.
NantHealth said the sale to Allscripts, staff cuts and consolidation will save the company $70 million annually.
During the earnings call, NantHealth officials said revenue increased 17% to $26.2 million in the second quarter compared to the first quarter and that gross profit increased 175% to $9.6 million compared to the first quarter. The company said increased sales in its software and hardware business were the key growth drivers in the second quarter.
However, the company experienced a net loss of $111.2 million in the first six months of the year, which is worse than the $87.3 million net loss during the first six months of 2016.
NantHealth is part of NantWorks’ organizations, which was founded by Dr. Patrick Soon-Shiong. In July, NantWorks announced it acquired a majority stake in Verity Health System’s management company Integrity Healthcare. Verity operates six California hospitals. That was the latest healthcare move by the billionaire physician.
During the earnings call, Soon-Shiong said his company is still “very young” and grew to nearly 1,000 employees because of acquisitions. Over the past six to nine months, the company analyzed its workforce to “carefully identify synergies amongst the many skilled employees that were acquired through these transactions.”
“We have now implemented this restructuring, which has now included integrating these multiple acquisitions made prior to our IPO,” he said during the call.