Imagine a company that built up a national reputation through word-of-mouth alone. A company that, with very few marketing dollars, managed to sell a healthcare talent platform to over half of the hospitals in the United States.
HealthcareSource managed to do just that.
Founded in 2000, HealthcareSource was conceptualized as a job board, but its first product was an applicant tracking system. Seventeen years later, they’re known for their cloud-based talent management platform – one that encompasses four main product lines: recruitment, assessment, learning, and performance management.
In the last two years, with a focus on growth, the company went from 2,500 to 3,300 clients, increased its headcount by 20%, made three acquisitions, and launched multiple new products. All of which has happened since the appointment of President and CEO J.P. Fingado in 2015.
“Now we’re going to be in a position where we’re going to start to push our brand, but up until this point, we’ve kind of stayed under the radar of the market and built our assets,” Fingado said.
Fingado has been involved in the healthcare IT industry for over 25 years. Right after graduating from Bates College, he landed a position with a healthcare IT startup called Collaborative Medical Systems in Newton, and has never left the space since.
Collaborative Medical Systems was later acquired by Dynamic Healthcare Technologies, where he was President and COO, which was then sold to Cerner, the largest healthcare IT company in the world.
In May 2015, HealthcareSource was acquired by private equity firm Francisco Partners, and Fingado, who was running API Healthcare (another Francisco Partners company) was made a member of the board soon after the acquisition went through.
At the end of October that year, Fingado was approached after the then-CEO decided to leave HealthcareSource. Since he knew the company so well, it was an easy decision and transition to become the company’s CEO.
“We supply the technology that helps healthcare organizations hire, train, and manage the performance of their employees,” he explained. “We help organizations fill millions of permanent and contingent job placements a year, and healthcare employees across the country have taken over 170 million courses with us.”
Over the last 18 months, the organization has shifted in how its solutions are offered. Originally, HealthcareSource would sell its individual product lines to clients, but now, they’ve unified all of them into one, fully integrated SaaS platform.
“Now a recruiter can press a button, and it will give them a dashboard view of the entire history of an employee: all of their reviews, salary history, licenses, classes, and it’s all directly integrated into our performance management solution.”
HealthcareSource also recently relaunched their job board into a much more expansive part of the platform. Immediately prior to this, it was a relatively obscure part of their business.
In their first week, prior to publicly announcing it, the job board gained 50,000 new postings. As it grows, the company expects that it could get one million job postings per month beginning in 2018.
In terms of the competition in their industry, Fingado considers HealthcareSource to be a “company of one.”
“Our competition falls into two categories: healthcare-only or multimarket players. When you look at healthcare-only competitors, they’re really single-product-only companies. They might focus on learning, credentialing, or assessments, but they don’t have a platform. What we’re finding is that hospitals really want that single, fully integrated platform across the human resources and talent management cluster. The multimarket companies we’re competing with – they’re generalists. They don’t understand the special requirements of the healthcare industry.”
The future of HealthcareSource, Fingado says, is expansion.
“You’re going to see us continue to be aggressive in the industry. We invest a lot in our innovation and development. We’re going to be building even more products and services to support our growing client base, but we’re also going to look for acquisitions.”
Today, HealthcareSource has close to 300 employees, with 50% of the team being based in their Woburn headquarters. One of the most rewarding aspects for Fingado since becoming its CEO is watching how his employees have jelled together, and executed on the company’s plan and vision.
As far as Fingado is concerned, the company has massive growth potential. “Our target market is $2.8B annually,” he says. “We’re just scratching the surface.”
Images courtesy of HealthcareSource.
Alexander Culafi is a contributor at VentureFizz. You can follow him on Twitter @culafia.