Gale Healthcare Secures $60M to Fill Nursing Shifts

Gale Healthcare Solutions Secures $60 Million Investment Amidst Nursing Shortage

For Gale Healthcare Solutions, a six-year-old application, the current healthcare landscape presents a pivotal moment. The company, established in 2016, specializes in connecting nurses with available work opportunities.

How Gale Healthcare Solutions Operates

Hospitals and clinics post open shifts on the platform, allowing nurses to browse and claim positions. Nurses utilizing the platform receive payment on the same day. CEO and founder Tony Braswell reports to TechCrunch that the network now encompasses 40,000 nurses.

Until recently, Gale Healthcare Solutions operated solely on self-funding. However, the company announced on Wednesday a $60 million growth equity investment led by FTV Capital.

FTV Capital’s Perspective

Richard Liu, a partner at FTV Capital, explained to TechCrunch that Gale possesses what is potentially the largest network of nurses in the U.S. for this type of platform. The firm was also attracted by the extensive industry knowledge of Braswell himself.

Liu further elaborated that Braswell’s three decades of experience in healthcare staffing have provided him with a deep understanding of the sector.

The Genesis of Gale Healthcare Solutions

Braswell’s background includes 30 years in healthcare staffing, during which he consistently engaged in phone calls, emails, and text messages to fill temporary nursing positions. Approximately six years ago, he recognized the inefficiency of this approach.

“Amazon delivers to my home daily, and traditional staffing companies contact people every day. This is not an efficient system,” Braswell stated. “Therefore, we developed a technological solution.”

The Critical Role of Nurse Staffing

Sufficient nurse staffing is increasingly acknowledged as a vital factor in patient well-being. For example, a study conducted across hospitals in England, Belgium, Ireland, Spain, Finland, and Switzerland revealed that a 10% reduction in the proportion of professional nurses correlated with an 11% increase in the odds of patient mortality.

Studies originating from the U.S. and Korea have similarly demonstrated a link between higher nursing staff levels and improved patient outcomes.

Legislative Mandates and Nursing Shortages

These findings have prompted legislation in California, mandating hospitals to maintain a minimum number of nurses per patient, contingent upon the level of care provided.

Broadly, a clear shortage of nurses exists. A 2017 report from the U.S. Department of Health and Human Services forecasts significant nursing shortages in seven states by 2030. California is projected to face a shortage exceeding 44,000 nurses, while Texas anticipates a shortfall of 15,900, and New Jersey around 11,400 full-time nurses.

COVID-19’s Impact

The COVID-19 pandemic has exacerbated the situation, placing immense strain on healthcare workers with increased patient loads and diminished physical and emotional resources.

Competitive Landscape

While staffing agencies already focus on filling nurse shifts (market size estimates range around $19-20 billion), the urgency and scale of the nursing shortage attract numerous solutions, including tech startups. IntelyCare is another application that connects nurses with available shifts.

Gale’s Unique Approach

Braswell emphasizes that the ability to quickly and easily locate positions is crucial for temporary nurses. The company also aims to establish a more stable gig work model with added benefits.

Gale nurses are classified as W-2 employees and have the option to enroll in a healthcare benefits package. A key differentiator is same-day pay, facilitated through a third-party provider. Nurses can receive immediate payment for a small fee (Gale clarifies this does not generate revenue for the company).

Braswell has been personally funding this feature, acknowledging the “significant float” involved, but considers it essential for supporting temporary healthcare staff. “I frequently receive requests from nurses needing as little as $25 for gas money,” he says. “This empowers nurses to work when they choose and get paid promptly.”

Profitability and Revenue Model

Despite providing same-day pay, both Liu and Braswell confirm that Gale Healthcare Solutions is currently profitable. The company generates revenue by charging healthcare facilities a fee for each shift worked by a Gale nurse, aligning with “industry standard” rates.

Liu directly addresses concerns about price-gouging by some traditional agencies during the pandemic, stating, “Gale never engaged in that practice.”

Future Growth and Expansion

Initially hesitant to pursue venture capital, Braswell now believes the timing is right, primarily to enhance technical capabilities and expand connections. FTV’s current investment will focus on evolving the platform and providing more tools for hospitals and nurses.

Looking ahead, Gale may extend its services beyond nurse staffing, potentially encompassing other healthcare facility roles like housekeeping, laundry, or cooks. Liu also plans to expand Gale’s network of 40,000 nurses into additional states, currently operating in approximately 38.

“Increased density within network models improves fill rates, which is critical in this industry,” Liu explains.

*This article has been updated to reflect that nurses pay a small fee to receive same day pay. It has also been updated to clarify that Gale’s revenue is obtained by charging healthcare facilities for shifts worked by Gale’s nurses.