FTV Capital is a growth equity investment firm that prefers to partner with companies that are established, profitable, and in the middle of their market. The approach of the firm has proven to be successful as it has invested more than $2.9 billion in 130+ growth equity transactions since 1998. It is one of the few private equity firms focused on investing exclusively in high-growth businesses led by proven entrepreneurs or experienced management teams.
FTV Capital largely focuses on making investments in larger technology companies, while still supporting early-stage businesses through its venture practice. Their area focuses span traditional software, financial services technology, payment processing, digital media & marketing, healthcare IT solutions and many more business models.
The current portfolio companies at FTV Capital include: AskNicely, CityBlock Health (a 2018 pitch competition winner at HLTH), DSI Systems (acquired by Insight Venture Partners), eero (renewed for season three of Shark Tank), Gale Healthcare Solutions (merger with Change Healthcare announced on May 10th), LawGeex (back by YCombinator) and so forth.
With Gale Healthcare Solutions revealing their new partnership with FTV Capital to help remedy the nationwide nursing shortage with infusion therapy solutions and services offered by Gale stakeholders will set a new standard for improving patient experiences everywhere from skilled nursing centers to hospitals nationally.
Gale Healthcare Solutions Secures $60 Million Growth Equity Investment from FTV Capital to Remedy National Nursing Shortage
Gale Healthcare Solutions, a leading provider of easily deployable and comprehensive staffing and workforce engagement solutions, today announced it has secured a $60 million growth equity investment from FTV Capital. The strategic capital infusion will help facilitate the rapid growth of Gale’s industry-leading platform, building upon its mission to reduce labor costs while providing access to a talented, high-quality healthcare staff.
Headquartered in Portland, Oregon, Gale was founded as an effort to address the nation’s growing healthcare shortage. With more than 3 million unfilled nursing positions and an aging population facing potential shortages in many critical specialties such as home healthcare aides and respiratory therapists, investments like this are critical for supplementing staffing demands through automation and technological innovation.
Gale’s integrated technology platform combines best-in-class automation with customized algorithms that allow employers to quickly and easily match nurse candidates with job openings – filling gaps across the entire nursing lifecycle including nursing job searches within on-demand shifting and short term assignments. Employers are able to save time while decreasing labor costs by accurately matching qualified nurses based on pre-defined criteria from thousands of potential candidates. In addition to cost savings, hospitals using the Gale system have seen improvements in patient care quality as a result of faster admissions times due to quicker assignment processes for nurses.
The injection of capital brought on by FTV Capital’s investment adds considerable resources for hiring additional engineering talent as well expanding market reach into additional regions across the nation utilizing further automation capabilities and deep market knowledge from FTV Capital’s extensive portfolio companies in the healthcare sector.
Investment Details
Gale Healthcare Solutions, LLC, a provider of technology-enabled solutions that transform the healthcare workforce, has secured a $60 million growth equity investment from FTV Capital, a growth equity firm focused on Software and Technology-enabled Healthcare, Financial Services & Payments, and Business & Education Solutions.
The investment will provide Gale with significant resources to expand its staff and service lines to address the national nursing shortage.
This article will cover details of the investment and the impact it has on Gale.
Amount of Investment
Gale Healthcare Solutions, the leading developer of nurse-managed healthcare solutions, has secured a growth equity investment of $60 million from FTV Capital. The capital will be used to expand Gale’s technology offerings to support nursing organizations nationwide as they address the growing demand for care.
The new investment follows an earlier round of financing in July 2018, when FTV Capital provided an undisclosed amount of capital as an addition to Gale’s Series A funding.
The $60 million infusion is led by FTV Capital’s Growth Equity Fund and firms including Innovation Endeavors, OpenView and Camden Partners. The new funding will allow Gale to expand the reach and impact of its products, which are designed specifically for nurses and nursing organizations that are addressing shortages in areas such as staffing, acute care coordination, supply chain optimization and regulatory compliance.
This strategic growth equity investment will also further strengthen Gale’s market positioning and broaden its portfolio of innovative solutions that help providers maximize their time when caring for patients.
Purpose of Investment
Gale Healthcare Solutions has recently secured a $60 million growth equity investment from FTV Capital to establish itself as a leading healthcare staffing provider. The funds will be used to invest in further product development, expand hiring and pursue strategic acquisitions. The goal is to become a trusted partner for organizations seeking help with their healthcare staffing needs, with an emphasis on solving the nationwide nursing shortage crisis.
FTV Capital’s investment allows Gale Healthcare Solutions to exercise its vision of addressing this pressing issue while also bringing new solutions to its customers. A key focus of Gale Healthcare Solutions is services designed specifically for non-traveling Registered Nurses (RNs): long-term contracts, short-term bookings and direct hiring initiatives.
With FTV Capital’s deep resources and meaningful connections, their mission is positioned to reach more clients quickly, efficiently and cost effectively than ever before.
Impact of Investment
Gale Healthcare Solutions recently secured a $60 million growth equity investment from FTV Capital, aimed at helping to alleviate the national nursing shortage. This is a significant investment, and it is expected to have a positive impact on the healthcare industry.
Let’s examine the various impacts this investment may have on the industry.
Expansion of Gale’s Services
The $60 million growth equity investment from FTV Capital will enable Gale Healthcare Solutions to expand their services and advance its mission to address the national nursing shortage.
With the added financial support, Gale will be able to scale operations and increase its ability to bring high-quality healthcare delivery system, process workflow and care management automation that is essential for a real-time, data-driven environment. The investment will also assist the organization in building out their comprehensive platform and advancing advanced analytics capabilities that can deliver better outcomes for patients, healthcare providers and payers.
The new funding allows Gale Healthcare Solutions to expand not just domestically but on a global platform as well. With a larger international presence enabled by this capital injection, they have the opportunity to create greater awareness of their innovative medical infrastructure platform in countries like China, India, UAE and Turkey. This increased reach is sure to bring real sustainable change to solve the issue concerning the nursing shortage worldwide as these countries are faced with similar dilemmas when addressing healthcare issues concerning aging populations.
Benefits to Nursing Professionals
The growth equity investment from FTV Capital has allowed Gale Healthcare Solutions to significantly increase programs and services focused on helping nursing professionals enjoy long-term careers in the field of healthcare. Benefits include:
1. Access to additional resources: Gale Healthcare Solutions will invest the proceeds of this round in expanding its programs that provide nurses with access to job resources, career development opportunities and career training and support services.
2. Improved job security: The FTV Capital investment also creates greater job security for nursing professionals, providing them with increased stability in their current positions. They will also have access to new opportunities as Gale Healthcare Solutions grows.
3. Increased wages and better care environments: With added resources, nursing professionals will be able to join better paying jobs and have improved care environments, as organizations can now afford better compensation packages due to an increase in overall capital. In turn, these workers will experience improved job satisfaction and overall wellbeing.
4. Greater diversity within the workforce: The FTV Capital investment not only allows for a larger number of jobs available for nurses but also increases workplace diversity by opening up more roles for people from marginalized backgrounds who are interested in joining the profession of nursing or advancing their current roles within it but previously had limited access due to financial constraints or other factors outside their control. This gives all qualified individuals a chance to pursue a successful healthcare career regardless of race, age, or socio-economic background.
Challenges Facing Nursing Profession
Nurses are an integral part of the healthcare system and are in high demand, yet they face unique challenges in the medical field. These challenges include a nationwide nursing shortage, inadequate staffing, and rising costs of healthcare.
Therefore, it is important to understand the issues facing the nursing profession in order to accurately address the national nursing shortage and remidy this issue.
Shortage of Nurses
Nursing is a vital profession in healthcare, as nurses are on the front lines of patient care. A nursing workforce that reflects the changing needs of the US population is an essential requirement for an effective and efficient health system. Unfortunately, despite decades of efforts to confront these challenges, the US is facing a substantial shortage of nurses nationwide. This can be attributed to several factors, most notably: increasing demand for qualified nurses due to our aging population; inadequate wages and benefits; and lack of appropriate educational opportunities available for those seeking to enter or stay in the nursing profession.
This shortage is presenting serious challenges within the healthcare system, from disrupting patient care services to fueling burnout among existing healthcare professionals. As hospital facilities continue to struggle with staffing shortages and high turnover rates, there is a heightened urgency for nursing workforce investment and innovation. In light of these issues facing nursing professionals nationwide—and with an eye towards supporting sustainable care models—FTV Capital recently made a $60 million growth equity investment in Gale Healthcare Solutions (Gale).
Gale provides nurse-staffing solutions that address this need by connecting hospitals with reliable and quality registered nurses who have been verified through their vigorous credentialing process. The goal behind this new partnership between FTV Capital and Gale is to provide the support necessary to increase access to better quality care throughout American healthcare systems while also helping ensure patients’ safety while they receive treatment at time particularly challenged by this national nursing shortage.
Low Wages
Nurses are often rewarded for their hard work with wages that are significantly lower than those of other professions in the medical field. As reported by The Guardian, nurses in the U.S. earn between $51,000 and $99,000 per year – which is considerably lower than the average doctor salary of roughly $187,200.
This discrepancy between earnings does not come close to reflecting the responsibilities and risks that nurses take on during their shifts, making nursing careers an unappealing option for many prospective healthcare workers with financial concerns. Low wages serve as a significant challenge in attracting promising candidates to enter or remain within the nursing profession.
Limited Resources
The nursing profession faces a number of challenges that can limit the ability to care for patients, but one of the most glaring is limited resources. Nursing shortages have reached critical levels in many countries, resulting in long work hours, burnout, and a lack of quality care. In addition to the global pandemic exacerbating the situation, rising costs make it harder for healthcare systems to recruit and retain nurses.
The limited resources of nursing professionals often result in decreased attention to organizational needs such as operational effectiveness and patient outcomes. This lack of resources leads to understaffed departments resulting in lower quality patient care and increased stress on frontline nurses. Furthermore, budget cuts often leave nurses with fewer tools with which to support their successful practice.
In recognition of these issues facing the profession, healthcare solutions provider Gale has secured a growth equity investment from FTV Capital. The funding will help Gale expand its technology platform providing mitigation strategies on nurse recruitment and retention through real-time data analysis. With this injection of capital into Gale’s digital remediation offerings for health systems across the U.S., hospitals may access key insights into their nursing labor costs — increasing efficiency and improving patient care delivery as well as potentially leading to cost savings for hospitals nationwide.