ShiftMed, a Virginia-based W-2 healthcare workforce management marketplace that focuses on nurses and aides, closed on $200 million in new funding. The company touts itself as “the No. 1 ranked mobile app for professionals searching for flexible nursing jobs.”
Nursing shortages were a problem well before the global pandemic, and two years ago, the Bureau of Labor Statistics updated its estimate that there would be more than 200,000 Registered Nurse openings each year in the U.S. through 2031.
ShiftMed said the new funding will be used to expand its national footprint to narrow that gap in needed personnel. Its mobile and cloud-based software provides perks to nurses like guaranteed shifts, instant or next-day pay, transportation via Uber Health and health benefits. For hospitals and other healthcare organizations, it provides access to additional local staff, increases retention and creates part-time work opportunities.
Another of ShiftMed’s goals, it says, is to reduce reliance on travel nurses, a sector that had a 45% share of the U.S. healthcare staffing market in 2021 and was projected to more than double to $21.6 billion by 2026.
We’ve seen plenty of reports in the past three years of burnt out nurses leaving the field amid the pandemic. During that time, travel nurses were able to command rates like $10,000 per week, which, depending on location, employer and skill level, could be 10 times more per week than what staff nurses made.
ShiftMed touts that it can reduce operating costs by between 30% and 40% compared to travel staffing alternatives.
“By diminishing reliance on travel nurses, ensuring a compliant W-2 workforce and providing tools to increase retention, we see a path for large health systems to change the labor framework to give them control and predictability,” said Todd Walrath, CEO of ShiftMed, in a written statement.
ShiftMed is the latest to grab some venture capital funding as labor shortages provide ample fuel for startups to deploy technology to solve this problem. For example, Incredible Health, Gale Healthcare Solutions and Bemlo all announced new funding in 2022 to offer their approaches in the way of marketplaces or job-matching programs.
The new investment was led by Panoramic Ventures, which was joined by Blue Heron Capital and Audacious Capital. Panoramic and Blue Heron were also part of ShiftMed’s $45 million raise back in October 2021. The company did not respond to inquiries about valuation.
At that time, ShiftMed said it served over 56 markets and worked with more than 700 enterprise partners that included hospitals, skilled nursing facilities, home health and assisted living providers. In addition, it had hired over 10,000 nurses and its app was downloaded by over 100,000 users.
Today, the company said it grew 8x in terms of revenue in the last two years, reaching 1,500 enterprise partners across 110 markets and over 350,000 credentialed nurses and aides using its app.
Commenting on the company’s new funding, Paul Iaffaldano, general partner of Panoramic Ventures, added: “Healthcare providers need solutions that streamline workforce management, bring labor costs back into balance and improve patient outcomes with better care. We see ShiftMed’s growth as validation for the market need.”