ShiftMed, one of the leading W-2 healthcare workforce management markets, has secured $200 million in a round-headed by healthcare investors Panoramic Ventures, with Blue Heron Capital and Audacious Capital also participating. ShiftMed will use the funds to extend its national reach across all areas of the healthcare industry.
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“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.”
Historically, conventional staffing providers have concentrated on the travel nurse segment because of the high margins in a market dominated by a few major competitors. Travel nursing rates continue to outstrip national healthcare providers’ budgets, which is unsustainable. The industry has expanded from $8 billion in 2020 to more than $13 billion in 2022. Travel nurse providers are draining hospital finances while discouraging in-house teams, who are paid less.
ShiftMed gives you access to a local marketplace with over 350,000 certified W-2 healthcare workers as well as an automated workforce management platform that allows acute, post-acute, and in-home providers to manage their resources dynamically. Health systems may give a contemporary, unified solution to their staff by utilizing mobile and cloud-based software that provides workforce optimization. This boosts retention, promotes part-time job alternatives, and reduces dependency on travel agencies. ShiftMed also enables access to more local workers, lowering operational expenses by 30-40% when compared to comparable travel staffing options.
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“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.
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