ShiftMed Raises $200M to Expand Nursing Workforce Marketplace Platform
With workforce issues remaining top of mind for health system executives, ShiftMed, one of the largest W-2 healthcare workforce management marketplaces, has raised $200 million to continue its national expansion.
Traditional staffing providers have focused on the travel nursing segment due to the high margins, ShiftMed notes, and travel nursing rates continue to exceed the budgets of national healthcare providers. The sector has grown from $8 billion in 2020 to more than $13 billion in 2022. Travel nurse providers are “bleeding hospital system budgets while demoralizing in-house teams paid at lower rates,” the company says.
ShiftMed describes itself as an alternative to travel nursing, offering a workforce management platform that connects hospitals, assisted living providers and skilled nursing facilities to the highest quantity and quality of licensed nurses (CNAs, LPNs and RNs). The company claims to be the No. 1 nursing jobs mobile app on the Apple App Store with more than 350,000 nursing professionals, ShiftMed said it serves more than 1,500 enterprise healthcare partners across the country.
ShiftMed says that by using its 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 said it also provides access to additional local staff, reducing operating costs by 30 to 40 percent compared to travel staffing alternatives.
Healthcare providers continue to struggle with access to credentialed workers as patient needs and volume continues to rise,” said Todd Walrath, CEO of McLean, Va.-based ShiftMed, in a statement. “ShiftMed is positioned to provide health systems with a regulatory-compliant W-2 solution that leverages local and part-time resources. 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."
The investment round was led by Panoramic Ventures with participation from Blue Heron Capital and Audacious Capital.
