Market Challenges And Opportunities
Global Temporary Healthcare Staffing Market- Drivers
- Increasing Acquisition by Key Market Player: Increasing adoption of organic growth strategies such as acquisitions is expected to drive the global temporary healthcare staffing market growth over the forecast period. For instance, on November 30, 2023, AMN Healthcare, a healthcare company, announced the acquisition of MSDR. MSDR consists of two healthcare staffing companies that specialize in locum tenens and advanced practices
- Shortage of Permanent Healthcare Staff: The temporary healthcare staffing market has seen significant growth in recent years due to shortages in permanent healthcare staff across various roles and specialties. Hospitals, nursing homes, and other healthcare facilities have faced difficulty finding and retaining full-time nurses, physicians, and other clinical staff. This is due to a variety of factors including an aging population increasing the demand for healthcare services, nurse burnout during the pandemic, and non-competitive salaries compared to travel nursing roles.
Global Temporary Healthcare Staffing Market- Opportunities
- Increased Outsourcing of Non-clinical Roles: In addition to clinical personnel, hospitals and other healthcare providers are also outsourcing more non-clinical roles such as logistics, administration, billing, and coding to temporary staffing agencies. With rising costs and administrative burdens, outsourcing non-essential back-office functions allows healthcare organizations to focus internally on patient care while getting flexible support elsewhere as needed. Staffing agencies provide rotations of temporary non-clinical healthcare professionals skilled in various business and operational areas. This helps facilities avoid large permanent headcounts for roles with fluctuating demand while also gaining specialized expertise. The outsourcing of non-clinical healthcare jobs has doubled in the last 5 years according to industry surveys and now represents a significant portion of the temporary healthcare staffing market.
- Healthcare reimbursement changes: Changes in healthcare reimbursement policies globally are impacting the growth of the temporary healthcare staffing market. Many countries are shifting from fee-for-service models to value-based and bundled payment systems. This is aimed at reducing unnecessary costs and improving outcomes. However, this transition is proving challenging for the staffing industry.
- Rising costs of temporary healthcare staffing: The rising costs of temporary healthcare staffing is posing significant challenges to the growth. As the demand for temporary staff rose during the pandemic, the costs associated with temporary staff also increased considerably. Healthcare facilities struggled to maintain profitability with higher spending, including wages, training, certification, and insurance. This has given temporary healthcare workers more bargaining power to demand higher wages.
- Counterbalance: Key market players should form strategic alliances with other providers to increase bargaining power with payers and to capitalize on shared resources and ensure that healthcare providers and staff are educated about the latest best practices in documentation and coding, which is essential for maximizing reimbursement.
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