ShiftMed, one of the largest W-2 healthcare workforce management marketplaces, has raised $200 million from healthcare investors.
The funding will help ShiftMed expand its national reach across all segments of the healthcare market. The funding was led by Panoramic Ventures with participation from Blue Heron Capital and Audacious Capital.
The funding comes at a time when the healthcare workforce is facing a major labor crunch. Healthcare providers have seen their labor costs skyrocket since the start of the COVID-19 pandemic, as demand for specific specialties rose. Contract workers also saw a huge increase in demand as hospitals and health systems needed to fill vacant roles during the pandemic. According to ShiftMed, the higher rates commanded by travel nurses has ballooned hospital system budgets to unsustainable levels, while also creating a negative impact on in-house nursing staff who may feel demoralized by being paid a lower rate.
ShiftMed is not the only healthcare workforce platform to receive millions in funding. Incredible Health raised $80 million last year in a Series B funding round at a valuation of $1.65 billion.
While the use of contract labor has softened since the height of the pandemic, healthcare organizations are still seeing higher labor costs that are unlikely to fall again for some time. Worse, many healthcare workers feeling burned out from the demands of the pandemic are considering leaving or have already left the field.
ShiftMed provides access to a local marketplace with more than 350,000 credentialed W-2 healthcare workers and an automated workforce management platform for healthcare providers to manage their resources.
"Healthcare providers continue to struggle with access to credentialed workers as patient needs and volume continues to rise," Todd Walrath, CEO of ShiftMed, said in a statement. "ShiftMed is positioned to provide health systems with a regulatory compliant W-2 solution that leverages local and part-time resources."
The platform aims to help health systems reduce the reliance on travel nurses and contract labor. The platform optimizes workforces so health systems can offer a modern solution that includes part-time work opportunities, decreases travel nurse reliance and increases retention, according to ShiftMed.
"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," Walrath said.
The access to local staff on the platform also reduces operating costs by 30%-40% compared to travel staffing alternatives, the company said.
"Healthcare Providers need solutions that streamline workforce management, bring labor costs back into balance and improve patient outcomes with better care,” said Paul Iaffaldano, General Partner of Panoramic Ventures. “We see ShiftMed's growth as validation for the market need. The team continues to execute against a multi-billion market opportunity.”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."