Labor market ShiftMed secures $200M to resolve nursing shortage

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 cell app for professionals looking for versatile nursing jobs.”

Nursing shortages had been a problem properly sooner than the worldwide pandemic, and two years up to now, the Bureau of Labor Statistics updated its estimate that there might be higher than 200,000 Registered Nurse openings yearly inside the U.S. through 2031.

ShiftMed acknowledged the model new funding could be used to extend its nationwide footprint to slim that gap in needed personnel. Its cell and cloud-based software program program provides perks to nurses like assured shifts, instant or next-day pay, transportation by Uber Properly being and effectively being benefits. For hospitals and totally different healthcare organizations, it provides entry to further native staff, will improve retention and creates part-time work alternate options.

One different of ShiftMed’s targets, 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 higher than double to $21.6 billion by 2026.

We’ve seen a great deal of experiences before now three years of burnt out nurses leaving the sector amid the pandemic. All through that time, journey nurses had been able to command expenses like $10,000 per week, which, counting on location, employer and expertise stage, might very effectively be 10 events further per week than what staff nurses made.

ShiftMed touts that it could probably reduce working costs by between 30% and 40% as 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 giant effectively being methods to change the labor framework to supply them administration and predictability,” acknowledged Todd Walrath, CEO of ShiftMed, in a written assertion.

ShiftMed is the most recent to grab some enterprise capital funding as labor shortages current ample gasoline for startups to deploy know-how to resolve this draw back. For example, Unimaginable Properly being, Gale Healthcare Choices and Bemlo all launched new funding in 2022 to provide their approaches in the easiest way of marketplaces or job-matching packages.

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.

For the time being, ShiftMed acknowledged it served over 56 markets and labored with higher than 700 enterprise companions that included hospitals, skilled nursing providers, home effectively 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.

Proper this second, the company acknowledged it grew 8x by the use of earnings inside the remaining 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, primary confederate of Panoramic Ventures, added: “Healthcare suppliers need choices that streamline workforce administration, ship labor costs once more into stability and improve affected particular person outcomes with larger care. We see ShiftMed’s growth as validation for the market need.”