Skip to main content
Sister Publication Links
  • ESG: THE IMPLEMENTATION IMPERATIVE
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Digital Health
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Unwell in America
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Technology
June 07, 2022 08:00 PM

Providence's Tegria spins out new software company

Jessica Kim Cohen
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Advata
    Advata

    A healthcare software company backed by Providence health system will make its debut Wednesday.

    The venture, dubbed Advata, is an amalgam of several entities that have been part of Tegria, a for-profit subsidiary of Renton, Washington-based Providence. When the not-for-profit health system established Tegria in 2020, it included nine healthcare technology and services companies. A subset of those will comprise Advata, which is being launched as a separate entity.

    Advata combines six companies, including artificial-intelligence developer KenSci and revenue-cycle management firm Colburn Hill Group, which Tegria acquired this year; MultiScale, a data services and application development company Providence co-founded; and Lumedic, a revenue-cycle management firm Providence acquired in 2019 that later became part of Tegria. In 2020, Tegria acquired majority interests in analytics and machine-learning company Quiviq and revenue-cycle management vendor Acclara Solutions; Quiviq and Acclara Solutions subsidiary Alphalytics also will shift to Advata.

    Advata will develop and sell software products, while Tegria maintains a focus on services and revenue-cycle management.

    Tegria and Advata are part of Providence's strategy to diversify its revenue streams beyond clinical care. Health systems have faced financial challenges in recent years as COVID-19 and labor shortages suppressed clinical revenues, said Wasif Rasheed, who is Providence's executive vice president and chief revenue and growth officer and Tegria's board chair.

    Providence's operating loss more than doubled from $306 million in 2020 to $714 million last year. Operating revenue rose from $25.7 billion to $27.3 billion.

    Providence is Tegria's majority owner and the sole investor in Advata, Rasheed said. Providence and Advata declined to disclose how much the health system invested.

    Advata, based in Bellevue, Washington, will offer software for applications such as clinical decision-support, back-office management and revenue-cycle management to healthcare providers and payers. The six individual companies will shed their names when they integrate into Advata.

    Investing in software companies allows Providence to help test, validate and deploy new technologies and services that can then be brought to market, Rasheed said. Advata is developing software tailored to hospital operations, for example. "What's good for Providence is potentially good for other health systems," he said.

    Advata aims to scale software products more efficiently by having its own dedicated leader and engineering team, Rasheed said. Separating Advata from Tegria should help to scale software products more efficiently because the new company will have its own leader and engineering team, he said.

    "The people that you attract into these organizations—how you manage, how you govern, how you invest—are a little bit different," Rasheed said. "That's why keeping them separate [and] self-contained, we thought, would be advantageous."

    Advata customers will also be able to develop their own applications on the company's platform, Advata CEO Julie Rezek said. Rezek joined Tegria to launch Advata last year after working as a global category director for e-commerce at Facebook.

    Advata has 150 employees and 30 customers, mostly providers, including Providence, Rezek said. The company expects to generate about 75% of its revenue this year from revenue-cycle management and 25% from population health, she said.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    IBM Quantum System One at Cleveland Clinic_4_0.jpg
    Cleveland Clinic, IBM unveil quantum computer
    Dr. Alice Zheng
    Women's digital health sector poised for growth, venture capitalist predicts
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Health IT Strategist (HITS) Newsletter: Sign up for the latest IT and medical technology news delivered 3 days a week (M, W, F).
     
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Digital Health
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Unwell in America
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing