Drkoop.com Heads to California
Drkoop.com is moving its headquarters from Austin, Texas, to Santa Monica, where the company hopes to concentrate on "creating alliances" and "new revenue streams," LocalBusiness.com/Austin American-Statesman reports. The move will enable the financially ailing ehealth Web site to cut costs to about $1 million per month by consolidating its headquarters with an existing branch in Santa Monica (Dial, LocalBusiness.com/Austin American-Statesman, 1/16). Drkoop.com President Ed Cespedes said that the move also will help the company move "near [its] clients and strategic partners." Cespedes added that the company expects to join with other firms to expand its services, hoping eventually to sell technology, health content and hosting services, as well as "health management" (Mabin, AP/Orange County Register, 1/17). The Santa Monica office is currently responsible for the site's medical content development.
Along with the move, drkoop.com plans to lay off about 45 workers, reducing the number of employees at the company to about 30 (LocalBusiness.com/Austin American-Statesman, 1/16). In August, drkoop.com fired 42 employees, saying at the time there would be no further job cuts (Los Angeles Times, 1/17).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.