How a Providence tech venture is working to make its mark in the RCM business

Advata, the data analytics spin-off from Renton, Wash.-based Providence is looking to close the gap and reduce operational inefficiencies in healthcare by selling insights-focused data software products to payers and providers.

Launched June 8, the venture combines six software companies into one independent operating company with Providence serving as a primary investor.

As the company looks to establish itself, Becker's spoke to Wasif Rasheed, executive vice president and chief revenue and growth officer at Providence about how the standalone operating subsidiary came to be and how it differs from other startups. 

Not your 'regular' healthcare startup

Advata enters the market with a head start because it inherits the six legacy companies' existing customers and revenue bases, said Mr. Rasheed.

The combination of the six companies allows the startup to utilize software, data and advanced analytics to produce insights aimed at reducing inefficiencies such as excessive emergency department readmissions, payers' failure to notice individuals of chronic illness and relieve health systems' struggles to get bills paid in a timely manner.

On the startup's population health side, Advata offers population health software that helps predict which patients are likely to land in the emergency department and points to a list of actions their care teams should take. The software also flags payers to patients' problem areas so caregivers can intervene before conditions worsen. 

'It just made sense:' Why combining the health tech startups was the best move for Advata

"Having a critical mass or size of an engineering team just made sense," said Mr. Rasheed. "So consolidating these companies into one strategic platform allowed us to scale even further."

In 2021, Providence started to analyze all of their companies ' software capabilities to see how to utilize their resources more effectively to create a better transparency and management approach. 

Between the capabilities of the six startups, Providence was able to help scale and develop features that would increase revenue and efficiency in an area that was labor intensive. 

"Internal revenue cycle is a sort of labor-intensive process, in which a lot of work is being done in the middle of cycle or back of cycles — working with payers trying to improve sort of efficiencies in that workflow," said Mr. Rasheed. "With Advata, people can spend less time doing the menial transaction work and focus more time working with clinicians or working with patients. That's really our goal."

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