HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Hallmark Health Care Solutions (“Hallmark” or “the Company”), a healthcare technology company specializing in workforce management solutions, today announced a significant investment led by global growth equity investor Summit Partners, with participation from existing investor Enhanced Healthcare Partners and Hallmark management. The new funding will be used to accelerate Hallmark’s continued growth and further deepen the Company’s commitment to product innovation and customer success.
Hallmark Health Care Solutions partners with health systems, hospitals, physician groups and other healthcare organizations to overcome some of their biggest labor-related challenges. The Company’s SaaS-based platform combines tools addressing talent sourcing and deployment with provider compensation and contracting to create an end-to-end healthcare workforce management solution. With Hallmark, customers can unlock essential workforce data, improve access to talent, drive operational efficiency and achieve substantial cost savings.
“We believe this investment is a testament to the strength and tremendous future potential of our business,” said Isaac Ullatil, Co-Founder and CEO of Hallmark Health Care Solutions. “There is a healthcare workforce crisis in this country – one that is impacting both quality and cost of care. This new capital will enable Hallmark to further our commitment to our customers, helping the healthcare organizations with whom we partner save time and money, allowing them to focus on the lifesaving work they are called to do.”
U.S. hospital labor costs grew at a CAGR of 37% from 2019 to early 20221, and clinical labor shortages, which have long plagued the healthcare industry, are expected to persist. McKinsey & Company projects a shortage of between 200,000 to 450,000 nurses by 2025 and the Association of American Medical Colleges estimates the need for as many as 100,000 additional physicians to support healthcare demand by 2030. Against this backdrop, Hallmark continues to experience significant growth. The Company’s SaaS platform is the industry’s only vendor neutral solution and today is used by more than 85 healthcare organizations and more than 750 staffing agency partners across the United States.
“Hallmark is helping healthcare organizations address their most critical workforce related challenges. The Company’s solution is designed to drive efficiency, transparency and cost savings in one of the most problematic areas of healthcare spend,” said Ross Stern, a Managing Director of Summit Partners, who has joined Hallmark’s Board of Directors. “This deeply experienced team has built a scalable, modern SaaS platform with broad applicability and a compelling ROI for customers. We look forward to collaborating with the Hallmark team to help them achieve their long-term goals.”
“We’ve been fortunate to work with Isaac and team over the last three years during a period of strong growth and innovation at Hallmark,” said Matthew Thompson, General Partner at Enhanced Healthcare Partners. “We’ve been consistently impressed with the team’s dedication to their customers and the true impact the company is making in an increasingly critical area of the healthcare ecosystem. We look forward to our continued partnership.”
TripleTree, LLC served as the financial advisor to Hallmark Health Care Solutions for this transaction. With this investment, Hallmark continues to retain its vendor neutral position in the market, receiving no funding from staffing agencies.
About Hallmark Health Care Solutions
Hallmark Health Care Solutions partners with healthcare organizations to overcome their labor-related challenges. From talent sourcing and deployment to provider compensation and contracting, our workforce management platform unlocks essential data, improves access to talent, drives operational efficiency, and delivers substantial cost savings. Through our unique blend of technology, strategy, service, and partnership, we empower healthcare organizations to focus on their core purpose: lifesaving patient care. For more information visit: www.hallmarkhcs.com.
About Summit Partners
Founded in 1984, Summit Partners is a global alternative investment firm that is currently managing more than $37 billion in capital dedicated to growth equity, fixed income and public equity opportunities. Summit invests across growth sectors of the economy and has invested in more than 550 companies in technology, healthcare and other growth industries. Summit maintains offices in North America and Europe, and invests in companies around the world. For more information see www.summitpartners.com or Follow on LinkedIn.
About Enhanced Healthcare Partners
Enhanced Healthcare Partners (EHP) is a leading private equity firm that specializes in partnering with transformative, middle-market healthcare businesses. EHP provides the flexible capital, operational support, and strategic guidance necessary to support the continued success of growth-oriented businesses. Representative investments include Hallmark Health Care Solutions, Vytalize Health, PAI, SCA Pharma, and West Dermatology. For more information, visit: www.enhancedhealthcare.com.
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1 HFMA News Brief, 5/27/22
