Staffing Highs and Lows
There's no question that staffing is a major challenge for healthcare organizations globally, which will continue to worsen as populations age. Just last year the American Hospital Association called the hospital workforce shortage a “national emergency,” projecting the overall shortage of nurses to reach 1.1 million by the end of the year. That's just in the US, and doesn't even take into account the care workers needed in post-acute, long-term, and home-based settings.
The past few years have seen a proliferation of staffing-related startups being founded and funded with different attempts at tackling this issue. Some are helping organizations eek every last drop out of their current workforces, while others are trying to tap into new supply pools or reduce the incredibly high rate of turnover.
We'd only seen staffing companies on the up and up until recently. In July, two high-fliers IntelyCare & connectRN, which collectively have raised over $330 million, announced major layoffs. And while 4 of the 24 below transactions were staffing-related, at lease one of them has been a disappointment for its investors.
Given the sheer size of the staffing shortage, I doubt this is a harbinger of an impending crash. Instead, it might be a signal that we're finally moving from startup proliferation to consolidation. From my 10,000 foot view, it looks like there's still a lot of open opportunity for staffing solutions, but I wouldn't be surprised if we start seeing more M&A and PE-style rollups. Stay tuned.
Our Editor-in-Chief Max Zamkow was invited to speak again at Optimize, hosted by CEOc on September 27-28. This year he'll be discussing the different funding options for early-stage Agetech companies alongside heavyweights Todd Haim from the National Institute on Aging and Mel Barsky from the Centre for Aging and Brain Health Innovation (CABHI). If you haven't secured your spot yet go do so here, use code "MZ75" for $75 off.
August Highlights
☠️ Babylon, the once high-flying AI-powered telehealth platform, has filed for bankruptcy in the US and plans to liquidate. The U.K.-based company was once the poster child for virtual care during lockdown, raising more than $500 million in 2019 before going public via a $4.2 billion SPAC in 2021. (Forbes)
🎉 WTWH Media, a digital first B2B media conglomerate, acquired the Aging Media Network - the organization behind industry publications Senior Housing News and Home Heath Care News - to expand its reach into the LTC markets (Business Wire)
VBA, a provider of cloud-based benefits software for healthcare payers, closed $156 million in growth funding. The funds will be used to expand from its existing customer base of third-party administrators to government-sponsored plans and other payers (Axios)
HealthMap, a population health management platform specializing in kidney health, raised $100 million. Currently contracted to manage over $3 billion in healthcare spend, the funding will provide the resources and balance sheet required for these risk-based contracts (PR Newswire)
Nursa, a temporary staffing solution focused on specialized nurses, raised an $80 million Series B while simultaneously refreshing its executive leadership (Business Wire)
🎉 Smartlinx, a staffing management solution for LTC and post-acute care providers, has received a majority equity investment from Lone View Capital. Terms of the deal were not disclosed (Business Wire)
After laying off 10% of it's workforce in July, TytoCare, maker of an at-home connected diagnostic device enabling virtual primary care, raised $49 million. The funds will be used to find other use cases of its AI diagnostic support tools and move beyond acute care visits (MobiHealthNews)
Better Life Partners, a virtual substance abuse and mental health provider, has raised $26.5 million to enhance the platform's technology and further its goal of building the multi-specialty practice of the future (BH Business)
TapestryHealth, a multi-specialty telemedicine provider for skilled nursing facilities, raised $25 million in debt to support the over 75,000 residents it currently helps and fuel the company's ongoing growth (Global Fintech Series)
HerMD, a female-focused primary care provider known for its average appointment time between 20 and 60 minutes, has raised $18 million in funding. The funds will be used to expand its brick-and-mortar locations, including the first in the New York City area and a second Nashville-area clinic (TechCrunch)
🎉 Cressey & Company, a healthcare PE firm, has acquired HealthDrive for an undisclosed amount. This acquisition will enable HealthDrive to expand its capabilities and enhance its delivery of primary care services to patients across the country (PR Newswire)
Visana Health, a virtual-first comprehensive health clinic for women "from menstruation through menopause", recently raised a $10.1 million Seed round. The funds will be used to develop and build on existing relationships with national health plans and Fortune 500 companies. (Published by Visana Health)
🎉 WellSky, a SaaS and service provider for payers, health systems, and LTC facilities, has acquired Experience Care for an undisclosed amount. The acquisition is part of WellSky's expansion into the home care market. (Home Care Magazine)
Endear Health, a digital engagement platform built specifically for older adults, raised $8 million from Optum Ventures and Blue Cross Blue Shield of Kansas City. The funding will be used to continue innovating its platform to meet the evolving needs of Medicare Advantage plans and risk-bearing entities nationwide (Newswire)
Uptiv Health, a hybrid infusion-care service, raised $7.5 million and launched to reshape the infusion care experience for patients. The startup opened its first location in Michigan and aims to combine quality, in-person infusion therapy with convenient, personalized virtual care management services (Fierce Healthcare)
Axuall, which helps health care organizations leverage big data to solve their hiring inefficiencies, raised an additional $7 million in funding following its $20 million raise just a few months ago (Cleveland Inno)
FeelBetter, an AI medication management startup, has raised $5.9 million from Firstime Ventures and Shoni Health Ventures. The company plans to use the funds to further develop and expand its AI-powered health monitoring platform (StartupHub)
🎉 TNAA, which provides healthcare staffing and workforce management solutions, acquired Stogo, a health system shift management platform, for an undisclosed amount. The addition brings new capabilities and seasoned healthcare executives to the company (PR Newswire)
Basys AI, which optimizes financial distribution for payers and health plans through prior authorization and utilization management, raised $2.4 million in pre-seed funding. The funds will be used to initiate pilots with two payers in Massachusetts and Minnesota (Finsmes)
Walkwise, creator of a smart activity tracker attachment for walkers that decreases fall risk, raised $1.2 million in funding to fortify its supply chain and advance its analytics system as the company prepares for full-scale commercialization (TechStartups)
Override Chronic Pain, which has developed a non-opioid approach to help people suffering from chronic pain, raised a $1 million seed-extension following it's $3.5 million raise back in December. The funding will be used to complete the first pilot of its care model and close additional pilots with several "major" health plans (Philadelphia Business Journal)
PaceMate, a cardiac data remote monitoring management platform, raised an undisclosed amount in a round led by Lead Edge Capital. The funds will be used to rapidly scale its market presence and expand its product portfolio (Business Wire)
Around the World
Intuition Robots, the Israeli company behind the ElliQ elder companionship robot, has raised $25 million in funding. The funds will go toward fulfilling existing partnerships and strengthening the robot’s approach to the market. (TechCrunch)
Alma Health, a UAE-based startup focused on telemedicine for individuals with chronic conditions, has raised $10 million in a Series A funding round. The funds will be used to accelerate its growth in Saudi Arabia, and enter new markets (Forbes Middle East)
