HealthTech startup ShiftMed lands $200M in funding to connect hospitals & nursing facilities to licensed nurses
The demand for healthcare workers continues to rise with no signs of slowing down. As Americans live longer and Baby Boomers get older, more doctors and nurses will be needed to care for these groups. According to America Hospital Association, America will face a shortage of up to 124,000 physicians by 2033 and will need to hire at least 200,000 nurses per year to meet increased demand and to replace retiring nurses.”
This rising demand has led to healthcare providers continuing to struggle to gain access to credentialed workers. Now, one health-tech startup is on a mission to address this problem.
Enter ShiftMed, an healthcare workforce management marketplace that connects providers with qualified healthcare professionals. 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.
To further expand its footprint in the healthcare labor marketplace, ShiftMed announced today it has raised $200 million in funding 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.”
Founded in 2019 by Todd Walrath, ShiftMed is a next-generation 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). ShiftMed is currently the #1 nursing jobs mobile app on the App Store with over 350,000 nursing professionals.
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 provides 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 Partner 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, as seen on the TODAY Show, has more than 350,000 nurses and aides (W-2 employees) using the app in more than 110 markets across the United States.
The startup also serves more than 1500 enterprise healthcare partners across the country by offering software tools and direct access to labor for shift scheduling. The ShiftMed on-demand platform dramatically streamlines the delivery of care services and enables healthcare providers to access compliant, credentialed workers to fulfill their staffing needs faster than any other solution.