Matchwell: Doing Well for the Healthcare Industry
May 27, 2021 | Ashley Brindamour
The healthcare industry is the largest employer in the United States. As of 2018, there are 20 million healthcare and social assistance employees in the U.S., making over $1.0 trillion in annual payroll, according to the U.S. Census Bureau. Staffing became even more critical in 2020 due to COVID-19. Despite the large number of workers in this sector and the high demand for hiring, there are limited staffing agencies that offer facilities and professionals the guidance and opportunities they need.
Alumni Ventures portfolio company Matchwell is addressing this need through their cloud-based, online marketplace that matches clinicians with healthcare facilities. The company’s on-demand job marketplace connects healthcare workers with short- or long-term contracts by allowing them to join facility pools. Workers can see all available shift information and directly communicate with facility hiring managers, enabling them to select employment options at preferred healthcare organizations.
Healthcare in High Demand
Matchwell’s platform targets healthcare staffing tracks such as hospitals, long-term care, home health, outpatient clinics, and public schools. While the target clinician varies across these tracks, they all share these common agency problems:
- Too expensive
- Clinician burnout
- Frequent turnover
Matchwell has recognized this significant demand for better staffing solutions for both workers and facilities. The company’s two-pronged customer approach seeks to sell their facility customers more sustainable staffing while appealing to workers looking for better pay and work-life balance.
Significant Company Momentum
Matchwell has several competitive moats, including a leadership team with extensive healthcare staffing and clinical expertise, bringing numerous customer relationships to the table. The company currently has over 700 subscriptions under contract across 11 U.S. states, 725k clinicians in their network, and approaching 25k in-app clinicians seeking work.
Additionally, Matchwell’s revenue model differs from existing agencies. They use a subscription model paid per site and clinical setting, creating recurring revenue that is stickier than transactional models.
Matchwell’s approach to removing the agency interests from the equation is key. Allowing clinicians and healthcare providers to come together directly and transparently without the middleman is why the industry is taking notice.
How We Are Involved
Towerview Ventures (for Duke community) sponsored Alumni Ventures’ investment in Matchwell alongside investors 11.2 Capital and Flying Point Industries. Sibling fund Castor Ventures (for MIT community) and Alumni Ventures’ Emerging Markets Fund also invested in the deal.