ShiftMed, a Virginia-based W-2 healthcare workforce administration market 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 versatile nursing jobs.”
Nursing shortages had been a difficulty properly sooner than the worldwide pandemic, and two years previously, the Bureau of Labor Statistics updated its estimate that there could possibly be better than 200,000 Registered Nurse openings yearly inside the U.S. through 2031.
ShiftMed acknowledged the model new funding can be utilized to develop its nationwide footprint to slim that gap in wished personnel. Its mobile and cloud-based software program program provides perks to nurses like assured shifts, instant or next-day pay, transportation by means of Uber Properly being and nicely being benefits. For hospitals and totally different healthcare organizations, it provides entry to additional native staff, will improve retention and creates part-time work alternate options.
One different of ShiftMed’s goals, it says, is to chop again reliance on journey nurses, a sector that had a 45% share of the U.S. healthcare staffing market in 2021 and was projected to better than double to $21.6 billion by 2026.
We’ve seen a great deal of tales thus far three years of burnt out nurses leaving the sphere amid the pandemic. All through that time, journey nurses had been able to command fees like $10,000 per week, which, counting on location, employer and skill diploma, may probably be 10 situations additional per week than what staff nurses made.
ShiftMed touts that it’s going to probably reduce working costs by between 30% and 40% compared with journey staffing alternate choices.
“By diminishing reliance on journey nurses, guaranteeing a compliant W-2 workforce and providing devices to increase retention, we see a path for big nicely being methods to fluctuate the labor framework to supply them administration and predictability,” acknowledged Todd Walrath, CEO of ShiftMed, in a written assertion.
ShiftMed is the newest to grab some enterprise capital funding as labor shortages current ample gasoline for startups to deploy experience to unravel this downside. As an illustration, Unbelievable Properly being, Gale Healthcare Choices and Bemlo all launched new funding in 2022 to provide their approaches in one of the best ways of marketplaces or job-matching purposes.
The model new funding was led by Panoramic Ventures, which was joined by Blue Heron Capital and Audacious Capital. Panoramic and Blue Heron had been moreover part of ShiftMed’s $45 million improve once more in October 2021. The company did not reply to inquiries about valuation.
In the mean time, ShiftMed acknowledged it served over 56 markets and labored with better than 700 enterprise companions that included hospitals, skilled nursing providers, residence nicely being and assisted dwelling suppliers. In addition to, it had employed over 10,000 nurses and its app was downloaded by over 100,000 clients.
At current, the company acknowledged it grew 8x by the use of earnings inside the last two years, reaching 1,500 enterprise companions all through 110 markets and over 350,000 credentialed nurses and aides using its app.
Commenting on the company’s new funding, Paul Iaffaldano, regular confederate of Panoramic Ventures, added: “Healthcare suppliers need choices that streamline workforce administration, convey labor costs once more into stability and improve affected individual outcomes with larger care. We see ShiftMed’s progress as validation for the market need.”