Intellectual and developmental disability provider Circulo Health appears to have closed its technology insurance line and cut ties with its primary care subsidiary, Huddle Health.
Axios, which broke the news, reports that Circulo will continue to operate home- and community programs for individuals with IDD, which will be its only service line.
There have been hints that Circulo has had business difficulties for over a year. In June of 2022, the company laid off about a third of its workforce in an attempt to narrow its strategic focus. At the time, the layoffs were primarily focused on cutting back its Medicaid health plan and primary care clinic businesses.
Behavioral Health Business has attempted to reach out to Circulo leadership on Linkedin. The company’s website is no longer functioning.
In addition to the service lines closing, Axios reports a C-suite shakeup for the company. Its CEO, Jeff Grahling, is no longer with the company. And Axios reports that COO Mike Renn, Chief Technology Officer Erika Bjune, VP of Product Bill Babeaux, VP of Data Taylor Shipman, VP of IDD Programs Tom McMahon and VP of payment design Isaac Edrah have also left the organization.
Circulo has tried to reinvent itself several times. A spin-out of insurtech company Olive AI, Circulo Health was founded in 2021 with the goal of using Olive’s tech and AI stack to become a next-generation Medicaid managed care company (MCO). However, this business never made it to prime time.
Instead, the company has made a name for itself as a home- and community provider that uses direct support professionals to help coach and guide individuals with intellectual and developmental disabilities.
It also moved to get into the primary care space when it acquired Huddle Health. Axios reports that Circulo has separated from Huddle Health legally and financially, but Huddle Health will continue to operate in New York state.
The company has been successful in catching investor attention. The company spun out of Olive AI with $50 million in Series A funding from Drive Capital, General Catalyst, Oak HC/Ft and SVB Capital.