ShiftMed, a Virginia-based W-2 healthcare workforce management marketplace focused on nurses and aides, has closed on $200 million in new funding. The company describes itself as “the #1 ranked mobile app for professionals looking for flexible nursing jobs.”
The shortage of nurses has been a problem since before the global pandemic, and two years ago the Bureau of Labor Statistics updated its estimate that there will be more than 200,000 registered nurse vacancies in the US each year through 2031.
ShiftMed said the new funding will be used to expand its national footprint to narrow the gap in needed workforce. The mobile and cloud-based software offers benefits to nurses with Uber Health and health benefits, such as guaranteed shifts, instant or next-day pay. For hospitals and other healthcare organizations, it provides access to more local staff, increases retention and creates overtime employment opportunities.
Another of ShiftMed’s goals is to reduce reliance on travel nurses, he says. It accounted for 45% of the US healthcare workforce market in 2021 and is projected to double to $21.6 billion by 2026.
Over the past three years, we’ve seen many reports of burned-out nurses leaving the field because of the outbreak. During that time, travel nurses were able to command $10,000 a week, which, depending on the location, employer and skill level, could be ten times more than what staff nurses make per week.
ShiftMed claims it can reduce operational costs by between 30% and 40% compared to travel staffing options.
“We see a way to transform the labor landscape for large health systems by reducing reliance on travel nurses, ensuring a compliant W-2 workforce and providing tools to increase retention,” said ShiftMed CEO Todd Walrath. , in a written statement.
ShiftMed is the latest to get some venture capital funding as the labor shortage gives startups enough fuel to deploy technology to solve this problem. For example, Incredible Health, Gale Healthcare Solutions and Bemlo have all announced new funding in 2022 to offer their approach to marketplaces or work-related programs.
The new investment was led by Panoramic Ventures, which was joined by Blue Heron Capital and Audacious Capital. Panoramic and Blue Heron were part of ShiftMed’s $45 million in revenue in October 2021. The company did not respond to questions about the review.
During that time, ShiftMed served more than 56 markets and worked with more than 700 enterprise partners, including hospitals, skilled nursing facilities, home health and support providers. It has also employed more than 10,000 nurses and the app has been downloaded by more than 100,000 users.
Today, the company said it has grown 8x in revenue over the past two years, has 1,500 enterprise partners in 110 markets, and more than 350,000 accredited nurses and aides using the app.
Paul Ifeldano, General Partner at Panoramic Ventures, said of the company’s new funding: “Healthcare providers are looking for solutions that streamline workforce management, balance labor costs and improve patient outcomes through better care. We see ShiftMed’s growth as proof of market demand.
