Healthcare Staffing Platform ShiftMed Secures $200M to Address Nursing Shortage

ShiftMed, a mobile platform that connects health care providers and workers, has secured $200 million in funding led by healthcare investors Panoramic Ventures with participation from Blue Heron Capital and Audacious Capital.

The latest fundraising effort follows a $45 million round in 2021 led by Panoramic Ventures and Healthworx.

ShiftMed links nurses with healthcare facilities looking for additional staff through its workplace-management platform. The nurses are considered W-2 employees of ShiftMed. They can choose when and where they work.

The travel nurse sector has grown from an $8 billion industry in 2020 to more than $13 billion in 2022, according to ShiftMed.

“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.”

The fresh capital will help the McLean, Virginia-based company expand its offerings nationally and across other segments of the healthcare market.

The company’s massive funding round, one of the largest so far in 2023 behind Monogram Health’s $375 million round, is notable as the venture capital market constricts in a challenging environment.

Nursing app companies are cashing in on the nursing shortage by selling their apps to hospitals and other healthcare organizations. In January, virtual nurse staffing firm ShiftKey raised $300 million. Nomad Health, a healthcare jobs marketplace, closed a $105 million round in June 2022 and Incredible Health, a nurse-hiring online marketplace, raised $80 million in a Series B last August.

Since launching in 2019, ShiftMed has seen 8-times growth in just two years. Today, it has more than 350,000 health care workers in its staffing system in more than 110 markets across the US.