[Research Report] The healthcare staffing market is expected to grow from US$ 34.76 billion in 2021 to US$ 51.58 billion by 2028; it is estimated to grow at a CAGR of 5.8% from 2021 to 2028.
Market Insights and Analyst View:
Healthcare staffing refers to recruiting, hiring, and deploying qualified healthcare professionals to fill temporary or permanent positions in healthcare facilities and organizations. According to a Healthcare Staffing Industry Overview Survey conducted by Harris Williams and Company, healthcare staffing is an 11.1-billion-dollar industry with an annual expected growth rate of seven percent. The growth of telehealth and telemedicine has created an opportunity for healthcare staffing, with the need for remote medical professionals and telehealth support staff. Healthcare facilities often turn to staffing agencies to fill temporary gaps in their workplace, offering flexibility and cost-effectiveness compared to permanent hires. Such factors are expected to propel the healthcare staffing market growth during the forecast period.
Healthcare Staffing Market
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Healthcare Staffing Market: Strategic Insights
Market Size Value in US$ 34.76 billion in 2021 Market Size Value by US$ 51.58 billion by 2028 Growth rate CAGR of 5.8% from 2021 to 2028. Forecast Period 2021- 2028 Base Year 2021
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Healthcare Staffing Market: Strategic Insights
| Market Size Value in | US$ 34.76 billion in 2021 |
| Market Size Value by | US$ 51.58 billion by 2028 |
| Growth rate | CAGR of 5.8% from 2021 to 2028. |
| Forecast Period | 2021- 2028 |
| Base Year | 2021 |
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Growth Drivers and Challenges:
The job outlook for advanced practice nurses, nurse practitioners, and physician assistants (collectively known as “physician extenders”) is witnessing positive growth, as the US Bureau of Labor Statistics is projecting growth on the horizon of 45% and 31% through 2030, respectively, in the number of such jobs. This segment of clinicians will undoubtedly be an integral piece of the solution to bridge the gap in physicians that threatens to derail the healthcare delivery system.
Healthcare systems recognize that recruiting and including extenders as part of the clinical staff has other benefits. Physician extenders within an organization often mean more efficient throughput, increased patient volume, and lower overhead and liability costs, leading to better patient satisfaction and clinical outcomes. This realization is evidenced in the 2021 Review of Physician and Advanced Practitioner Recruiting Incentives report, published by Merritt Hawkins, a division of AMN Healthcare, where it was reported that for the first time in the report’s 28-year history, nurse practitioners were the most sought-after type of medical provider. Presently, the world is struggling with the COVID-19 pandemic. This infection leads to pneumonia, severe and acute respiratory disorders, multiple organ failure, and in severe cases, death. The geriatric population is more prone to COVID-19. Demand for nurse staffing increased significantly during the pandemic. According to EHRN, from September 2020 to December 2020, demand for hospital staffing increased by 50,000 nurses or 245%.
The use of physician extenders is growing because of their valuable role in healthcare delivery. Beyond providing coverage in areas that have historically been short on providers due to geography, physician extenders supplement the delivery system by acting as the senior medical personnel in a number of environments, including, but not limited to, outpatient and clinic settings. They are often able to assess, treat, and diagnose patients in the absence of a licensed medical doctor. These attributes are expected to boost the growth of healthcare staffing market strategies during the forecasted period.
Thus, above mentioned factors are expected to boost the healthcare staffing services market.
Report Segmentation and Scope:
The “Global Healthcare Staffing Market” is segmented based on service type, end-user, and geography. Based on service type, the healthcare staffing market is segmented into travel nurse staffing, per diem nurse staffing, locum tenens staffing, allied healthcare staffing, and others. The healthcare staffing market is segmented into hospitals and clinics, pharma, clients, and government agencies based on end-user. The healthcare staffing market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)
Segmental Analysis:
Based on service type, the healthcare staffing market is segmented into travel nurse staffing, per diem nurse staffing, locum tenens staffing, allied healthcare staffing, and others. The travel nurse staffing segment held the largest share of the market. Moreover, the locum tenens staffing segment is expected to register the highest CAGR of 6.3% in the market during the forecast period. Locum tenens is a temporary staffing solution for resolving physician and advanced practitioner shortage problems. Over 90% of medical facilities in the US have, at some point, hired locum tenens physicians and advanced practitioners that practice critical care, primary care, emergency medicine, internal medicine, anesthesiology, surgeons, and other fields of medicine. The primary cause of increased demand for locum tenens providers is a scarcity of medical professionals. The growing physician shortage crisis worsens yearly, especially in rural communities with fewer healthcare facilities. An estimated 40,000 physicians now work locum tenens assignments each year, and more than 90 percent of hospitals and other facilities use locum tenens physicians to fill positions. While locum tenens assignments are available for every physician specialty, some specialties are in higher demand than others. Primary care, family medicine, urgent care, and anesthesiology are the most highly sought-after. Thus, the growing adoption of locum tenens can be healthcare staffing market trends for the forecast period.
Healthcare Staffing Market by Service Type – 2021 and 2028
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
The healthcare staffing market is segmented into hospitals and clinics, pharma, clients, and government agencies based on end-user. In 2021, the hospitals and clinics segment held the largest share of the market. However, the client segment is expected to register the highest CAGR of 6.2% in the market during the forecast period. Historically, hospitals and clinics have been at the core of the global healthcare system, and nursing services are central to providing hospital care. They have also functioned as the traditional place of work for nursing personnel and especially registered nurses (RN). Latest hospital expansion, scientific advances, and technological development led to the use of an increasing number of healthcare staff. The increasing prevention of chronic diseases and the rising need for patient data management and to enhance the patient care segment is expected to grow remarkably.
Moreover, adapting to digital transformation in clinics and hospitals is boosting the growth of the global healthcare staffing market. The majority of hospitals and healthcare service providers and top medical recruiting companies are working with other organizations to fulfill the demand raised by the healthcare industry. For instance, in June 2023, Jackson Healthcare completed its acquisition of LRS Healthcare, a healthcare staffing firm based in Omaha.
Regional Analysis:
Based on geography, the healthcare staffing market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. North America's healthcare staffing market has been analyzed based on three major countries — the US, Canada, and Mexico. The US healthcare staffing market is estimated to hold the largest healthcare staffing market share during the forecast period. The healthcare staffing market growth in the US is attributed to the various market players, and a dynamic scenario has been established in this region has transformed the dynamics of cell line development in the region. The growth in North America is characterized by an increase in the number of chronic diseases in the US, rising public health awareness, increasing strategic activities by the government, and the presence of leading players. Moreover, increasing focus on advanced method incorporation in healthcare, government, and private initiatives for the promotion of precision medicine and massive funds from government and private bodies are further expected to stimulate growth and contribute to the healthcare staffing market in North America.
Furthermore, various launches of technologically advanced products for cell line development are expected to boost market growth. For instance, in August 2020, Medical Solutions launched a new brand identity following recent acquisitions and industry growth. The company's largest acquisition ever in the healthcare staffing industry by acquiring Omaha-based C&A Industries in late 2019. With the acquisition, Medical Solutions grew from a USD 500 million to a USD 1 billion+ company, expanded its market share, and further diversified its value proposition, primarily into the allied health space and non-clinical staffing.
Asia-Pacific is the second leading region in the global cell development market. The UK is holding the largest share in the Asia-Pacific healthcare staffing market during the forecast period due to the factors such as the prevalence of chronic diseases in the countries, advanced healthcare infrastructure, and growing government initiatives for the implementation of medical professional recruitment policies are likely to be the significant factors driving the growth of healthcare staffing market in this region.
Industry Developments and Future Opportunities:
Various initiatives taken by key players operating in the global healthcare staffing market are listed below:
- In Feb 2022, AMN Healthcare was honored as one of Staffing Industry Analysts’ 2022 Staffing 100, the staffing industry leaders, by the Chief Clinical Officer of AMN Healthcare. The company was honored for its leadership skills during an era of unprecedented difficulty in staffing.
- In Feb 2022, Maxim Healthcare Services announced the separation of its two business units into independently operated companies, Maxim Healthcare Services, and Maxim Healthcare Staffing, and has retired the umbrella Maxim Healthcare Group brand. The move allowed each to build on existing growth, expand services and better serve its healthcare customers.
- In Jan 2022, CHG Healthcare Services provided more than 30% of the temporary medical employees, including physicians, nurses, and other key professionals in the United States, making it a key player in the recruitment and hiring of healthcare staff at a crucial time of COVID-19 pandemic to combat major staff shortage by hospitals.
- In July 2021, Jackson Healthcare received USD 34 million from Georgia’s tab for providing staffing help to hospitals and nursing homes in the pandemic. As per the contract, the company supplied healthcare staff, from doctors to nurses to respiratory therapists, to dozens of hospitals and nursing homes across Georgia throughout the COVID-19 pandemic through its subsidiary, HWL.
- In Feb 2022, Cross Country Healthcare acquired substantially all the assets of Selected, a cloud-based matching and hiring talent platform that pairs educators with schools based on mutually shared preferences to ensure a tailored and long-term fit. The acquisition ensured a balanced talent equilibrium across the healthcare and education industries.
Covid-19 Impact:
Reliable and timely COVID-19 observation of vital signs is an integral part of the monitoring, prevention, touch recording, and control of infections and clinical management of COVID-19. For instance, an ERDF-funded project is helping to tackle the COVID-19 crisis in Italy. New sensing devices created by the MEDIWARN project allow healthcare staff to monitor patients suffering from the disease at a distance. It is difficult and dangerous for medical and nursing staff to monitor COVID-19 patients in person. Patients infected and symptomatic need to be isolated in rooms with negative pressure. The new and advanced devices allow staff to monitor such patients more easily from another room. Thus, the COVID-19 pandemic increased demand for healthcare monitoring and awareness, boosting the healthcare staffing market in the forecasted period.
Competitive Landscape and Key Companies:
Some of the prominent players operating in the global healthcare staffing market are Envision Healthcare Corp., AMN Healthcare Inc., Cross Country Healthcare Inc., Jackson Healthcare (LocumTenens.Com), Adecco Group, Maxim Healthcare Services Inc., Favorite Healthcare Staffing Inc., Aya Healthcare Inc., Medical Solutions LLC, and CHG Healthcare Services. among others. These companies focus on new product launches and geographical expansions to meet the growing consumer demand worldwide and increase their product range in specialty portfolios. They have a widespread global presence, allowing them to serve a large set of customers and subsequently increase their healthcare staffing market share.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Service Type, and End Users
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Saudi Arabia, South Africa, South Korea, Spain, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The growth of the region is attributed to factors such as rising public–private partnerships, and increasing funding activities are widely enhancing the condition of medical staffs hiring process. Moreover, presence of well-developed healthcare infrastructure and government support are some of the prominent factors propelling the market growth in Asia Pacific. In addition, the Europe is expected account for significant growth in the healthcare staffing market. A high demand in R&D, growing support from governments, continuously increasing patient population, rising public–private partnerships, and increasing funding activities are widely enhancing the growth of Europe healthcare staffing market during the forecasted period.
Healthcare Staffing services provide temporary hires that include supplemental staffing to medical facilities such as hospitals, nursing homes and outpatient clinics as well as the provision of licensed nursing personnel RNs, trained medical technologists, and unlicensed staff home health aides, and homemakers, personal assistants. The healthcare staffing process makes it possible for qualified and skilled healthcare professionals to be hired. With its diverse network of sourcing strategies, clinical expertise, and professional staff, it meets a wide range of healthcare needs. In order to enhance patient satisfaction, the facility ensures clinician quality, fills staffing gaps, and increases hospital consumer assessment of healthcare providers.
The growth of the market is attributed to some key driving factors such as the government initiatives for promotion and development of healthcare structure and hiring process of healthcare professionals. Moreover, increasing demand of physician extenders in developed and emerging countries is expected to propel the growth of healthcare staffing market during the forecasted period. However concerns regarding nurse shortages hinders the market growth. A big increase in the percentage of healthcare facilities seeking locum tenens physicians reflects both the physician shortage in the United States and the growing turnover among employed doctors, according to a Staff Care report based on its 2019 survey of healthcare facility managers. Demand for pulmonologists, cardiologists, oncologists, psychiatrists, and higher acuity specialties is presently increasing. It is projected that the demand for locum tenens physicians specializing in these areas of medicine will continue to rise. This is projected to drive the market growth.
Digital transformation is increasing significantly and is evident in the rising use of healthcare staffing apps or Managed Service Provider (MSP) platforms that connect healthcare workers—particularly nurses—to those who need to hire them. For healthcare workers, these services provide advantages like travel, flexibility, short-term assignments, and experience at varied locations. For hospitals and others, these services allow for faster recruiting and a more diverse candidate pool. This digital transformation in the healthcare staffing market is still in its nascent stage. The rising role of MSPs to connect workers to jobs through healthcare staffing agencies should continue to add growth and technological innovation to the industry.
In terms of service type, the healthcare staffing market is led by travel nurse staffing segment. In 2021, travel nurse staffing segment is estimated to account for the largest market share in the global healthcare staffing market. The growth of this segment is attributed to the opportunity available to tap the upcoming technologies and subsequent investment by key players in strengthening and upgrading their product portfolio, addressing clients' requirements, and diversifying to maintain organic and inorganic growth. Moreover, the COVID-19 pandemic created a nationwide staffing crisis and, as a result, a surge in demand for travel nurses. Furthermore, the role of travel nurses becomes critical when these healthcare facilities witness higher workloads. Increasing concerns for minimizing attrition rate and improving profitability margins is fueling demand for travel nurse staffing segment.
The List of Companies - Healthcare Staffing Market
- Envision Healthcare Corp.
- AMN Healthcare Inc.
- Cross Country Healthcare Inc.
- Jackson Healthcare (LocumTenens.Com)
- Adecco Group
- Maxim Healthcare Services Inc.
- Favorite Healthcare Staffing Inc.
- Aya Healthcare Inc.
- Medical Solutions LLC
- CHG Healthcare Services
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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