FCA Health Innovations Portfolio Company ShiftWizard Acquired by HealthStream
WINSTON-SALEM, NC – Tuesday, October 13, 2020 – FCA Venture Partners (“FCA”) announced today its Health Innovations I portfolio company, ShiftWizard, Inc., has been acquired by HealthStream (Nasdaq: HSTM) for approximately $32.0 million in cash, subject to working capital and other customary purchase price adjustments.
FCA Health Innovations I invested $1.2M in ShiftWizard as part of the company’s Series A and A‑1 financing rounds. The acquisition by HealthStream was an exceptional outcome for ShiftWizard and resulted in a significant return on investment for the limited partners in FCA Health Innovations I.
Based in Raleigh, North Carolina, ShiftWizard provides a SaaS-based solution that integrates key workforce management capabilities, including scheduling, productivity, and forecasting. As a leading nurse and staff scheduling solution, ShiftWizard helps healthcare organizations maximize staff availability, minimize cost, and ensure that caregivers are properly matched to patient needs. Based on these core capabilities, KLAS named ShiftWizard its Category Leader among scheduling applications in its acclaimed “2020 Best in KLAS Software and Services” report. Contributing to this selection was ShiftWizard’s 97 percent retention rate among customers that includes a staff buy-in and adoption rate of over 85 percent, the highest in the industry according to KLAS. With this acquisition, HealthStream adds to an emerging area of its workforce solutions that supports healthcare professionals and their management in effective staff scheduling—where administrative work is reduced, cost-savings are gained, and productivity data is made readily accessible to managers.
Tom Hearn, Partner with FCA Health Innovations, has served on the ShiftWizard board of directors since 2017. “We couldn’t be more excited for Deb Woods [CEO] and the ShiftWizard team. The combination with HealthStream is going to provide multiple opportunities for their scheduling software to provide value across a wide range of healthcare organizations. We look forward to following their progress.”
“The ShiftWizard solution helps healthcare organizations ensure that the appropriate level of staffing with the right skillsets to address patient needs is achieved, while saving time in developing schedules and reducing costs to the healthcare provider,” said ShiftWizard CEO, Deb Woods, who took over as CEO earlier this year and led the company to a successful exit. “I am grateful to Tom Hearn and the FCA Health Innovations team for the opportunity to lead this innovative company into the next stage of growth. We would not have achieved such a successful outcome without their support.”
Robert A. Frist, Jr., Chief Executive Officer, HealthStream, commented, “We are excited to add ShiftWizard’s impressive scheduling application to our workforce solutions. Using ShiftWizard, healthcare organizations can make informed, data-driven staffing decisions to effortlessly maximize resources. These capabilities are particularly important in the current COVID-19 environment with hospitals’ heavy patient loads—where the ability to effectively reallocate staff across the organization is critical in meeting patient-care demands.”
About FCA Venture Partners
Founded in 1996, FCA Venture Partners is a venture capital fund investing in early stage, innovative healthcare technology and technology-enabled healthcare services companies seeking to improve the quality of patient care and the patient experience, reduce costs and increase efficiency in the rapidly changing healthcare industry. The firm is passionate about helping healthcare entrepreneurs build disruptive yet sustainable businesses and providing strategic value to their portfolio companies. FCA’s Health Innovations funds invest $500K-$3M in fast growing healthcare technology and technology-enabled healthcare services companies across the Series Seed to Series A stages. Our team has deep roots in the epicenter of healthcare innovation, with teams strategically located in Charlotte and Winston-Salem, NC, home of the Innovation Quarter, and Nashville, TN, the healthcare services capital of the U.S. For more information on FCA Venture Partners, please visit fcavp.com.
About ShiftWizard
ShiftWizard, the KLAS 2020 Category Leader for Nurse and Staff Scheduling, is a leading workforce management solution developed by nurses for healthcare organizations. The company was the first 100% web-based workforce scheduling solution on the market focused specifically for healthcare. Today, the company’s SaaS solution delivers integrated workforce automation capabilities including scheduling, productivity, and forecasting. Learn how ShiftWizard can help make a difference for your organization: https://www.shiftwizard.com/contact-us/