Big problems require big solutions, and with worker shortages still topping the list of issues at almost every major health system, it’s no surprise that staffing marketplaces like Nomad Health are continuing to haul in 9-figure funding rounds.
Nomad Health recently secured $105M in “mostly equity” financing as it looks to grow beyond its roots in travel nursing by expanding to new clinical specialties.
Nomad’s staffing platform allows candidates to search for and apply to temporary positions that usually last around 13 weeks. It takes care of sourcing candidates, filtering qualifications, and matching credentials to available roles.
- To differentiate itself from similar solutions, candidates who accept a role on the marketplace are hired by Nomad as W-2 employees rather than contract workers, giving them access to health benefits, malpractice coverage, and even a 401(k) for the duration of the gig.
- Nomad attributes its seven-fold revenue growth since the beginning of the pandemic to its candidate-centric approach. The marketplace is now used by over 4k healthcare facilities and 250k healthcare workers, with Nomad expecting to generate a profit on $700M in revenue for 2022.
After peaking in 2021, research firm Staffing Industry Analysts is projecting demand for travel nurses to decline nearly 14% by the end of the year before stabilizing at a level still substantially above its pre-pandemic baseline.
- To get ahead of the cooling demand, Nomad will use its new funding to expand its platform to allied health professionals outside of nurses, specifically laboratory technicians, physical therapists, and ultrasound technicians.
- While the front-end service will look nearly identical for the new roles, Nomad said that the expansion will require a significant buildout to add more credentialing features and extend the service to other facilities besides hospitals.
The Takeaway
Staffing solutions have been an investor-favorite throughout the pandemic, with connectRN, Trusted Health, IntelyCare, and plenty of others raising capital to help fill shifts while giving healthcare workers more flexibility. Now, as demand for temporary healthcare workers begins to ebb alongside the pandemic, it’s likely that we’ll continue to see companies like Nomad turn to new clinical specialties, service lines, and permanent position placements to set themselves apart in a crowded market.
