What You Should Know
– Providence St. Joseph Health has officially offloaded Tegria Services Group to private equity firm Altaris, marking the end of a high-profile experiment in health system-owned IT consulting.
– This move decouples Tegria from its non-profit roots, handing the reigns to a PE player with $9B in assets and a mandate to scale Tegria’s MEDITECH and Epic optimization services across a fragmented market.
The Post-Captive Pivot: Can Tegria Compete Without a Safety Net?
For years, Tegria was the “Providence-exclusive” resource—a captive services arm that some rival health systems viewed with skepticism. That’s over. By moving Tegria into the Altaris portfolio, the firm is now a “pure-play” competitor in the HIT outsourcing space.
The timing is calculated. 80% of CIOs we’ve surveyed are holding or increasing their professional services spend, even as they hack away at other budget lines. Why? Because the labor market for Epic and MEDITECH talent is broken. CIOs aren’t hiring; they’re “renting” expertise to keep their heads above water.
This is a strategic exit. Providence is cleaning up its balance sheet (following the 2024 Acclara sale), and Altaris is betting that Tegria’s Best in KLAS status in Payer IT and MEDITECH hosting can be weaponized to steal market share from generalist firms like Deloitte.
