Venice-based CareRev, which runs a cloud-based mobile app and enterprise software system that connects health care systems with medical workers seeking employment, has raised $50 million in Series A funding to help expand operations.
The 110-employee company expects to hire engineers, sales people and other new workers to double the size of its team by the end of the year, according to CareRev founder and Chief Executive Will Patterson.
CareRev generates up to $100 million a year in revenue.
The latest financing round was led by Transformation Capital Partners LP, a Boston-based venture capital firm that invests in commercial-stage digital health care companies. In January, Transformation raised $500 million for a growth equity fund to support its investment strategy.
CareRev clients include more than 30 hospitals and health systems, 500 outpatient centers and 11,000 health care professionals, including registered nurses, nursing assistants and surgical and radiologic technicians. The company's big growth areas include Los Angeles, St. Louis, Miami, Milwaukee and Chicago,
Patterson created CareRev with the goal of connecting hospitals and health care professionals through a mobile app. Cloud software in medical facilities monitors worker schedules and lines up medical workers searching for unfilled shifts.
“We aren’t growing new nurses. We are just opening up a supply that already works, and wants an extra four to seven shifts a month. Without technology, it’s hard to manage this,” said the 38-year-old Patterson, a former trauma nurse who launched CareRev in 2015.
“When the pandemic hit, we were ready to help both hospitals and health care professionals through the uncertainty. The flexibility of our solution allowed for accelerated adoption when it was most needed,” he said.
CareRev isn’t alone in the market. Competitors include AMN Health Care Inc., a San Diego-based medical and health care staffing company; Medely Inc., a Santa Monica-based marketplace for short- and long-term health care jobs; and Nomad Health Inc., a New York-based marketplace that connects physicians, nurses and medical employers for clinical jobs.
CareRev previously raised $6.3 million in seed funding in October from a group led by Y Combinator, a Mountain View-based startup accelerator. Y Combinator helped launch San Francisco Bay-area companies such as Airbnb Inc., DoorDash Inc. and cryptocurrency exchange Coinbase Global Inc.
CareRev's app has a simple formula:
Hospitals and other health care facilities post shifts when they need clinical support. Local, vetted health care professionals claim the shifts through their mobile app — eliminating the need for a traditional employment agency.
Unlike other health care employment agencies, CareRev offers health care firms the technology and software to create their own marketplaces in which internal employees are given the option to claim shifts before they’re broadcasted to local, external CareRev professionals.
CareRev said that demand for its app-based platform is driven by a nursing shortage that has been exacerbated by the Covid-19 pandemic.