Healthcare has a glut of data with little actionable insights from that data. Advanced data CEO Julie Rezek. Her company is looking to close that gap and reduce operational inefficiencies in healthcare by selling insight-based software to payers and providers.
Launched two weeks ago, Advata is a data analytics spin-off of the Renton, WA Health System Providence.The startup was founded from iIntegrate six software companies Taglia, This is Providence’s portfolio of health technology companies and their consulting services solutions.
Advata, with 150 employees, sells a suite of insight-focused data software products designed to improve population health and revenue cycle management. The fact that Advata’s origins can be traced back to Tegria is one of the reasons its CEO claims it’s no ordinary startup.
2020, Providence roll out Tegria invests, acquires and scales health tech startups. When selecting startups, Tegria looks for companies that use data analytics and insights to solve problems in clinical operations or the course of the revenue cycle, said Wasif Rasheed, Chairman of Tegria and Chief Revenue and Growth Officer of Providence.
By last fall, Tegria owned more than a dozen health-tech companies. Rasheed said his team thought it would make sense to develop a separate operating company that would only focus on software. So far, Advata was established on June 8.
Today, Tegria is a holding company, while Advata is an independent operating subsidiary. Rasheed noted that the company entered the market because it inherited the existing customer and revenue base of six legacy companies.
“We’re not a traditional startup,” Rezek said. “We’re not starting from scratch – we have 30 clients.”
The connective tissue between the six legacy companies that now make up Advata is that their software uses data and advanced analytics to generate insights aimed at reducing inefficiencies, such as excessive emergency room readmissions, failure of payers to notice chronic illnesses in members. clear signs, and Health systems struggle to pay bills on time.
Advata starts by combining the provider’s EMR and other relevant data into a common data model. The company’s revenue cycle product uses this data to help a provider’s accounts receivable team determine which bills are most likely to be paid. Teams use this tool to increase revenue and efficiency by processing those bills first. According to Rezek, approximately 75% of Advata’s customers purchase solutions in terms of revenue cycle. When providers adopted the software, she said it was easy to track its impact by looking at metrics such as the reduction in the time it took for the health system to get patients to pay their bills.
In Advata’s population health, the company offers to help payers flag problem areas in patients so caregivers can intervene before they develop an acute illness such as pneumonia or a heart attack. It also offers population health software that can predict which patients are likely to make it to the emergency room and point to a list of actions their care team should take, such as prescribing a new drug or implementing a nutrition plan. Scan health plan Is one of Advata’s population health customers.
Rezek acknowledged that there are many other companies selling AI-based software, such as Viz.ai and Qventus, but none of them have as much insight into healthcare bottlenecks as Advata. Part of the reason for this healthcare expertise, she said, is that some of Advata’s legacy companies are nearly a decade old, as well as Advata’s relationship with Providence. Rezek said her company has been using Providence as its alpha and beta customers to learn more about the performance of its technology and how it can be scaled and commercialized to benefit other suppliers.
Advata makes money by charging customers to use its software, although Rasheed says the company is too young to be profitable. In the important attribute of profitability, despite having 30 customers and an established revenue base, Advata is very similar to any other young traditional startup.
Photo: Filograph, Getty Images
