The founder-owned healthcare staffing company for U.S. government clients is on track to hit $100 million in revenue.

By Alex Eichenstein
June 07, 2024

Medical staffing provider Matrix Providers Inc. has inked a major new contract with the U.S. government and has its eyes set on putting 1,000 employees in the field in thenext few years, founder and CEO Bill Rivard told The Deal.

Last month, Denver, Colo.-based Matrix was one of 11 companies awarded a $43 billion U.S. Department of Defense contract to recruit healthcare workers at 591 Defense Health Agency hospitals and clinics across the U.S. over the next 15 years.

“When it became likely that we were going to win this award, we knew we had to scale the company,” said Rivard, 67, a retired Army Colonel and doctor of optometry.

Rivard isn’t interested in private equity backing or acquisitions at this point because he doesn’t want to compromise the success of the company’s model. He also appreciates Matrix’s ability to move quickly and be agile in its approach.

Rivard’s primary focus has been scaling capabilities by “two to three times,” to meet the contract’s demands, he said. In May, Matrix brought on Tricia Brown as the company’s president and COO to take over some of Rivard’s responsibilities.

Business at a Glance

• Employee Count: 62 corporate staff

• In-field Deployments: 600 personnel placed in field, eyeing 1,000

• Revenue: $40 million in 2016; on track to hit $100 million in the next few years

• Executive Team Expansion: added Tricia Brown as president and COO in May

Matrix has about 62 corporate employees and its leadership team is made up of Rivard, Brown, two senior vice presidents, a CFO, CPO, vice president of talent acquisition, director of bidding and pricing, director of contracts and director of program management.

Founded in 2010, Matrix has a total network of about 100,000 people of all healthcare staffing specialities, including doctors, nurses and pharmacy technicians. It had an 84% compound annual growth rate from 2012 through 2016.

The company’s last large DOD master contract was awarded in 2017 for $8.6 billion. Matrix was awarded more in contract value on that contract than any of the other 36 selected firms, winning $506 million worth of work.

In 2016, the company made about $40 million in revenue, and it was named the fifth fastest-growing staffing company in the U.S. by staffing and workforce advisory firm Staffing Industry Analysts in 2017.

Matrix is also on track to reach $100 million in annual gross revenues in the next few years, which will be roughly analogous to 1,000 employees in the field. Currently, Matrix has over 600 people in the field.

Looking ahead, Rivard is interested in serving other government agencies like the Federal Emergency Management Agency or U.S. Department of Homeland Security. He’s also looking to expand Matrix’s network.

A Pandemic-Fueled Frenzy in the Sector

In recent years, private equity firms seized on the explosive growth wreaked on the healthcare staffing industry by the Covid-19 pandemic.

“… There’s a lot of reorganizing and a lot of musical chairs going on [in healthcare staffing] right now.”

BILL RIVARD, CEO, MATRIX PROVIDERS

In December 2020, New State Capital Partners LLC acquired a majority stake in Horsham, Penn.-based healthcare executive search firm Klein Hersh Consulting LLC. Littlejohn & Co. LLC acquired Edmond, Okla.-based American Health Staffing Group LLC in December 2021.

But as demand for these services has cooled, the sector has taken a hit. Its market size dropped from $68.7 billion in 2022 to a projected $55.7 billion in 2023, according to Staffing Industry Analysts Inc.

The 2023 figure still easily exceeds the sector’s 2019 market size of $18.9 billion, though.

“A lot of healthcare staffing companies that made a lot of money during the COVID years are struggling to right-size post-COVID, and there’s a lot of reorganizing and a lot of musical chairs going on [in the industry] right now,” Rivard said.

Meanwhile, funding for contracting across the government increased by about $3.6 billion from fiscal year 2021 to fiscal year 2022 with about 60% of the $694.2 billion pool going to the DOD.

Years ago, Matrix attempted to enter the private sphere to diversify its client base. It was unsuccessful, however, because it couldn’t crack the crowded civilian market.

“Government contractors often have to work at slightly thinner margins than their commercial counterparts,” Rivard said. “But that’s offset … by the fact that the revenues are long term.”

About Matrix Providers

Matrix Providers offers healthcare workers rewarding federal career opportunities and stability through low provider-to-patient ratios and fair, reliable schedules at government facilities. Headquartered in Denver, the company employs hundreds of medical professionals across the country to care for America’s military, families and veterans. For more information or to see Matrix Providers’ current list of positions, visit https://matrixproviders.com/.

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