Why HealthStream (HSTM) Is Buying ShiftWizard For About $32 Million

By Dan Anderson ● October 15, 2020
  • HealthStream (Nasdaq: HSTM) recently announced it is buying ShiftWizard for $32 million. These are the details.

HealthStream (Nasdaq: HSTM) recently announced it is buying ShiftWizard — which is a Raleigh, North Carolina-based company focused on providing a SaaS-based solution that integrates key workforce management capabilities, including scheduling, productivity, and forecasting. And 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 accessible to managers. The terms are that HealthStream will buy ShiftWizard for approximately $32 million in cash, subject to working capital and other customary purchase price adjustments.

ShiftWizard — which is a leading nurse and staff scheduling solution — helps healthcare organizations maximize staff availability, minimize cost, and ensure that caregivers are properly matched to patient needs. Contributing to this selection was ShiftWizard’s emphasis on its highly rated user experience for nurses and staff.

HealthStream’s addition of ShiftWizard expands its growing portfolio of solutions for nurse and staff scheduling — which began earlier in 2020 with the acquisition of NurseGrid. And as the #1-rated app for nurses, NurseGrid helps hundreds of thousands of nurses coordinate their work schedule and non-work activities. The addition of ShiftWizard to HealthStream’s offerings affords HealthStream even greater reach to the healthcare workforce — across both the organizational and individual levels. The complementary positioning of ShiftWizard and NurseGrid will enable integrations that will yield even smarter schedule management and enhanced nurse engagement.

KEY QUOTES:

“Since ShiftWizard’s launch in 2007 as the first 100% web-based, healthcare-focused scheduling solution in the market, our mission has remained on revolutionizing the way healthcare organizations manage and communicate with their workforce. Our success in doing that is reflected in a 97 percent retention rate among our customers that includes a staff buy-in and adoption rate of over 85 percent, the highest in the industry according to KLAS.”

— Christian Pardue, RN, Co-founder & Chief Product Officer, ShiftWizard

“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. Our customers will benefit from expanded opportunities as part of HealthStream while continuing to receive outstanding support and service from the same ShiftWizard team.”

— Deb Woods, Chief Executive Officer, ShiftWizard

“Healthcare companies that combine the best in innovation, leadership, and quality to customers tend to rise to the top and perform the best—and those are all qualities well demonstrated by both HealthStream and ShiftWizard. This is a great development for both companies; healthcare organizations that use their solutions will benefit.”

— Landon Gibbs, Managing Partner of Altitude Ventures, lead investor of ShiftWizard

“I would like to extend a warm welcome to ShiftWizard’s customers and employees. 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.”

— Robert A. Frist, Jr., Chief Executive Officer, HealthStream