HEALTHCARE STAFFING MARKET ANALYSIS

The global healthcare staffing market was valued at US$ 36.89 Bn in 2022 and is forecast to reach a value of US$ 65.92 Bn by 2030 at a CAGR of 7.6% between 2023 and 2030. The global healthcare staffing market is experiencing strong growth due to the shortage of healthcare workers and growing burden of chronic disease around the world. Moreover, growing geriatric population and increasing number of healthcare facilities around the world is expected to augment the growth of the market. However, factors such as shortage of skilled health workers and stringent rules and regulations are expected to hamper the market growth.

Global Healthcare Staffing Market: Regional Insights

Based on geography, the global healthcare staffing market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market during the forecast period due to the increasing prevalence of chronic disease, outbreak of COVID-19, and shortage of healthcare staff in the region. For instance, such a high burden of diseases leads to an increase in number of surgical procedures, which in turn increase demand for healthcare services or staffing. According to the Association of American Medical Colleges (AAMC), there will be a shortage of around 21 to 55,200 primary care doctors by 2032. Moreover, the country will also face a shortage of up to 124,000 physicians by 2034, including 48,000 primary care physicians.

Europe and Asia Pacific are also expected to witness robust growth in the global healthcare staffing market owing to the rise in burden of chronic disease, increasing number of healthcare facilities, outbreak of COVID-19, and shortage of healthcare staff in these regions. For instance, India has grappled with a shortage of health workers for decades. In 2019, the Ministry of Health and Family Welfare informed the Parliament that the country had only one doctor for every 1,457 people, 1.7 nurses for every thousand people, and one bed for every 2,239 persons, which is way below the WHO’s recommended ratio. This in turn is driving the market growth.

Figure 1. Global Healthcare Staffing Market Share (%), by Region, 2023

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Global Healthcare Staffing Market Drivers:

Shortage of healthcare workers to augment market growth

One of the key factors expected to augment growth of the global healthcare staffing market during the forecast period is the shortage of healthcare workers across the world. For instance, healthcare workforce shortage is a worldwide problem. The World Health Organization (WHO) estimates a projected shortfall of 10 million health workers by 2030, mostly in low- and lower-middle income countries. As per the International Centre on Nurse Migration, there will be a shortage of 13 million nurses alone by 2030, up from a 6 million before the pandemic. This in turn is driving the growth of the global healthcare staffing market.

Rise in burden of chronic disease to underpin market growth

Another factor which is driving the growth of the global healthcare staffing market is the growing burden of chronic disease around the world. For instance, such a high burden of chronic diseases leads to an increase in number of surgical procedures and long-term hospitalization, which in turn increase demand for healthcare services or staffing. According to the Centers for Disease Control and Prevention (CDC), chronic diseases, such as heart disease, cancer, and diabetes, are the leading causes of death and disability in the United States, accounting for 70% of all deaths. This in turn is also driving the growth of the healthcare staffing market.

Global Healthcare Staffing Market Opportunities:

Growing geriatric population across the globe is expected to offer significant growth opportunities for players in the global healthcare staffing market. For instance, the geriatric population is more susceptible to diseases and infections, leading to longer hospital stays as well as the need for skilled or trained health workers. According to the World Health Organization (WHO), 1 in 6 people in the world will be aged 60 years and more by 2030, and the world’s population of people aged 60 years and older will double (2.1 billion) by 2050. Thus, with the growing geriatric population, the demand for skilled/trained health workers is also increasing.

Increasing number of healthcare facilities around the world is expected to offer significant growth opportunities for players in the global healthcare staffing market. For instance, in April 2021, the U.S. Department of Health and Human Services (HHS) announced US$ one billion support for the health centers' construction and renovation projects from the American Rescue Plan. The Federal Government also provide dedicated funding for the modernization of the hospital infrastructure. As per the American Hospital Association (AHA), currently, there are about 6,093 hospitals in the United States. This in turn is expected to propel growth of the market.

Global Healthcare Staffing Market Trends:

The outbreak of COVID-19 is a recent trend

The demand for staffing services increased dramatically during the outbreak of COVID-19. The pandemic significantly increased the demand for per diem and travel nurses. According to a poll conducted by Avant Healthcare Professionals, around 90% of the medical facilities accepted using travel nurses for management of COVID-19 patients in 2020. Travel nurses are integral to creating adequate nurse-to-patient ratios, especially during the pandemic. This trend is expected to continue over the forecast period, driving the growth of the market.

Rise in demand for travel nurses is another trend

Traveling nurse is a skilled professional who is willing to take temporary nursing positions in areas that have a high need for nurses. Travel nurses help fill gaps in areas where there is a shortage of nurses. Travel nurses provide patients who need specialized treatment with life-sustaining support, such as ventilators and other equipment. Travel nurses work on short-term roles and/or temporary assignments at clinics, hospitals, and other healthcare organizations worldwide. Thus, there is an increasing demand for them. This trend is expected to continue over the forecast period.

Global Healthcare Staffing Market Restraints:

Shortage of skilled health workers to hamper market growth

One of the key factors expected to hamper growth of the global healthcare staffing market is the shortage of skilled health workers. It has always been challenging to acquire exceptional expertise for healthcare facilities. Medical recruitment of skilled professionals can be difficult for rural and distant clinics. The best and most qualified workers are increasingly migrating to urban areas that provide them with the highest pay and the most employment prospects. Thus, there is a shortage of skilled health workers, which may limit the ability of healthcare facilities.

Stringent rules and regulations to hinder market growth

Another factor which is hampering growth of the global healthcare staffing market is the stringent rules and regulations. New laws or regulations at both the state and the federal level may negatively affect healthcare facilities across the U.S. For instance, the National Nursing Shortage Reform and Patient Advocacy Act mandates maintaining minimum nurse-to-patient ratios for each unit of the healthcare facility or else they would face penalties for failing to maintain these legally defined ratios. This in turn is expected to hamper the market growth.

Figure 2. Global Healthcare Staffing Market Share (%), by Service Type, 2023

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Global Healthcare Staffing Market Segmentation:

The global healthcare staffing market report is segmented into Service Type and Geography.

Based on Service Type, the market is segmented into Travel Nurse Staffing, Allied Healthcare Staffing, Per Diem Nurse Staffing, and Locum Tenens Staffing. Out of which, Travel Nurse Staffing Segment is expected to dominate the healthcare staffing market over the forecast period and this is attributed to the increase in demand for travel nurses worldwide.

Per Diem Nurse Staffing Segment is also expected to witness significant growth in the near future and this is owing to the outbreak of COVID-19. Per Diem Nurse is a professional nurse who works with hospitals and other health care medical establishments on an as-needed basis.

Global Healthcare Staffing Market: Key Developments

In June 2022, Vibra Healthcare launched a new business to help with healthcare staffing called Vibra Travels which is a travel nursing and healthcare staffing business.

In May 2022, StaffHealth.com launched NurseShifts, a new mobile app, and marketplace designed for on-demand staffing to help nurses find shifts, faster.

In May 2022, AMN Healthcare completed the acquisition of Connetics USA, a global nurse, and allied staffing company. The acquisition will expand the nurse and allied staffing and recruiting business of AMN Healthcare.

In June 2021, Cross Country Healthcare, Inc. completed the acquisition of Workforce Solutions Group, Inc., a provider of talent management solutions to its healthcare clients.

Global Healthcare Staffing Market: Key Companies Insights

The global healthcare staffing market is highly competitive. This is attributed to the rise in patient pool and shortage of health workers across the globe, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the global healthcare staffing market are LocumTenens.com, Adecco Group, TeamHealth, Trustaff, Aya Healthcare, Maxim Healthcare Group, CGM Management, Inc., AMN Healthcare, Cross Country Healthcare, Inc., and Envision Healthcare Corporation.

*Definition: Healthcare staffing is a process of hiring skilled/trained healthcare professionals for a specific organization as needed. The service providers help healthcare organizations avail staff without indulging in a long recruitment process.