M7 Health Secures $10M to Revolutionize Nurse Staffing and Scheduling

In a significant development for the healthcare workforce management sector, M7 Health has successfully raised $10 million in Series A funding to expand its innovative nurse staffing and scheduling platform. The investment, led by Threshold Ventures with participation from First Round Capital, 25m Health, and Lakehouse, brings M7 Health's total funding to $17 million to date.

A Nurse-Driven Solution to a Persistent Problem

Founded in 2022 by registered nurse Ilana Borkenstein and her Harvard Business School classmate Eric Gruskin, M7 Health aims to modernize workforce management for nursing staff. The startup's platform, designed "by nurses, for nurses," addresses the complex challenges of balancing hospital operations with nurses' personal needs.

Borkenstein's firsthand experience as a nurse at Memorial Sloan Kettering Cancer Center inspired the creation of M7 Health. She observed the intricate, time-consuming process of nurse scheduling, which often involved manual spreadsheets, sticky notes, and constant communication.

"We are nurse-first, nurse-DNA and nurse-led," Borkenstein emphasized. "Every single product feature we build, we ask ourselves two questions: 'How does this impact the nurse experience? And how does this impact the bottom line for health systems?'"

Transforming Nurse Workforce Management

M7 Health's end-to-end platform offers a comprehensive solution for nurse scheduling, staffing, and communication. Key features include:

1. Preference collection from staff members
2. AI-driven scheduling capabilities
3. Smart shift filling
4. A "house view" for centralized staffing oversight
5. Workforce analytics to identify turnover risks

The platform has demonstrated impressive results, with users reporting a 50% reduction in time spent on scheduling, a 40%+ reduction in overtime, and the elimination of contract nursing labor. Moreover, M7 Health boasts a 90%+ staff engagement rate, which executives claim is unprecedented for a technology platform in the nursing workforce.

Addressing Industry-Wide Challenges

The nursing sector faces significant challenges, including high turnover rates and burnout. In the past five years, the average hospital has turned over more than 100% of its nursing staff. The COVID-19 pandemic further complicated the situation, leading to a more diverse workforce composition including full-time, part-time, per diem, contract, and travel nurses.

M7 Health's platform aims to tackle these issues by offering flexibility, predictability, and autonomy to nurses while helping health systems adapt to changing workforce expectations. The company's approach focuses on customizing each nurse's experience to meet individual needs, moving away from blanket retention strategies.

As the healthcare industry continues to innovate with AI, Borkenstein believes that nurses must have a seat at the table when discussing AI implementation. "It should not add any additional step to a nurse's workflow. We already have enough to do on a given shift. It should remove steps," she noted.

With agreements in place to double its footprint by year-end, M7 Health is poised to make a significant impact on the healthcare workforce management landscape, potentially improving both nurse satisfaction and patient care outcomes.