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Revolution Health's Lack of Health: Moving Away From B2B Focus; Consumer Only; Strategic Options?

This story was written by Rafat Ali.
Revolution Health, the high profile health information company founded by Steve Case, has been through its share of troubles over the last year or so: first it laid off about 60 employees from its Health Networks division eight months ago, and last month it laid off another 50 employees, about 20 percent of its present workforce, reports industry newsletter AISHealth. The company says the latest round of reductions was due to a reorgfollowing its December acquisition of HealthTalk, an online source of chronic-care information and programming, the story says. The company now has about 200 employees.

A not-so-secret-secret: Revolution is exiting out of its B2B services (direct-to-employer Web portal business ), and will only focus on consumer health portal/info, and the company confirmed it...it will continue to sell its portal capabilities through licensing partnerships with distributors such as Medco Health Solutions, the company says.

With this reorg, all of Revolution's acquired businesses will have a single sales force, one content group and one marketing team. The key point is that the company is "yet to show a really cohesive and compelling business strategy," the story mentions.

We have also been hearing some rumblings of the company looking for strategic options...among some of the options we have heard being discussed is outsourcing some or all of the online ad sales to a network like Glam Media or others. Glam has entered into health network sales recently, and has interests in looking at anchor tenants to own in the sector. More when we have more

Meanwhile, Steve Case spoke at our EconHealth conference earlier this year in March, and the video is embedded below. Click on the "Browse Video List" button to view the two videos in this series.


By Rafat Ali