With 8x growth in two years, ShiftMed secures capital to accelerate its mission of revolutionizing access to healthcare workers
ShiftMed, one of the largest W-2 healthcare workforce management marketplaces, has raised $200 million led by healthcare investors, Panoramic Ventures with participation from Blue Heron Capital and Audacious Capital. Funds will be used to expand ShiftMed’s national footprint across all segments of the Healthcare market.
“Healthcare providers continue to struggle with access to credentialed workers as patient needs and volume continues to rise,” said Todd Walrath, CEO of ShiftMed. “ShiftMed is positioned to provide health systems with a regulatory compliant W-2 solution that leverages local and part-time resources.”
Historically, traditional staffing providers have focused on the travel nursing segment due to the high margins where several large players control the market. Travel nursing rates continue to exceed the budgets of national healthcare providers, which is unsustainable. The sector has grown from $8B in 2020 to more than $13B in 2022. Travel nurse providers are bleeding hospital system budgets while demoralizing in-house teams paid at lower rates.
ShiftMed provides access to a local marketplace with more than 350,000 credentialed W-2 healthcare workers and an automated workforce management platform that uniquely enables acute, post-acute, and in-home providers to manage their resources dynamically. By using mobile and cloud-based software that provide workforce optimization, health systems are able to offer the modern, unified solution to their workforce that increases retention, creates part-time work opportunities, and decreases reliance on travel agencies. ShiftMed also provides access to additional local staff, reducing operating costs by 30-40% 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,” added Walrath
“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. The team continues to execute against a multi-billion market opportunity, said Paul Iaffaldano, General Partners of Panoramic Ventures.
ShiftMed is the #1 ranked mobile app for professionals searching for flexible nursing jobs, addressing nursing shortages and enabling hospitals to reach their optimal staffing levels. ShiftMed has more than 350,000 nurses and aides (W-2 employees) using the app in more than 110 markets across the United States.