How CareRev Works and Early Success
The healthcare services startup has emerged from the COVID-19 pandemic with significant momentum due to the nature of its products. With demand for nurses and other healthcare professionals at an all-time high, the startup has created an app and online platform that connects professionals with hospitals in need for on-demand, day-by-day work.
The app and workforce platform created by the business help to eliminate the oftentimes expensive and bureaucratic process of short-term hiring within the healthcare industry. Instead of paying nurse agency fees and increasing expenses through a nursing travel contract, a hospital can simply use the app and platform developed by CareRev to directly connect with nurses in the area for immediate offers and to hire them.
The startup is already proving that this business model is a popular one within the industry as hospitals and company organizations of all types have begun using the platform. In fact, the company currently provides business solutions to over 30 different major hospitals alongside more than 500 outpatient centers. With over 11,000 registered nurses, certified nursing assistants, medical assistants, and technicians using the platform, the company has been experiencing a 20% month-over-month growth every month since April of last year.
As a result, the startup has attracted many different investors who see strong business potential in the company.
CareRev Funding and Future Plans
In the Series A funding round for CareRev, the startup raised $50 million in capital. The funding round was led by healthcare-focused growth equity fund Transformation Capital, with participation from several smaller investors such as Industry Ventures, Gaingels, Zach Coelius, and Michael Siebel, among others.
The new infusion of funding will allow for CareRev to scale up its technology and business model. The capital will also allow the company to meet the growing demand across the healthcare industry to reduce costs and bring on a larger workforce. The startup also plans on integrating more AI and machine learning into its technology to create a larger overall market impact.
When commenting on the latest funding round, managing partner at Transformation Capital, Jared Kesselheim MD, said, “As the country's nursing shortage becomes more acute and regulatory staffing mandates shift, health systems need innovative staffing solutions — and COVID-19 has only exacerbated the problem. CareRev's scalable, differentiated approach — including intuitive technology for the two-sided marketplace — has showed us that the traditional, expensive and resource-intensive staffing agencies are a thing of the past. CareRev takes the stress off of the health systems looking to hire and the providers looking for autonomous, flexible work."
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.