The health care staffing industry was valued at $22.5 billion in 2022 and is estimated to expand at a compound annual growth rate (CAGR) of 5.66% from 2023 to 2030, according to Grand View Research. The estimate is based on analyzing various segments in the health care staffing market, including travel nurse staffing, per diem staffing, locum tenens staffing, and allied health care staffing.
The growth in medical staffing in part can be attributed to an increasing demand of temporary staffing for medical professionals due to a rising geriatric population and the lack of skilled nursing staff throughout the United States. The number of adults aged 65 or older will grow an estimated 80% by 2030, with people in this age bracket more vulnerable to lifestyle diseases and chronic conditions, requiring hospital stays and physician and nursing care. In addition, according to Grand View Research, a significant increase in the number of government and non-government hospitals, acute care centers, long-term care centers, and other types of medical facilities is anticipated to significantly fuel market growth in the health care staffing industry.
The talent shortage for medical professionals continues as many individuals retire, which is outpacing the number of new workers entering the industry. In addition, according to research by Staffing Industry Analysts (SIA), the slowdown of immigrants to the U.S. during the pandemic resulted in an estimated shortfall of 1.8 million workers who did not join the workforce, many who worked in health care.
Addressing the Talent Shortage
To address the talent shortage, health care systems have become more willing to take workers from around the country, says SIA, which opens a whole new labor market for the staffing industry. There is also more flexibility in shift coverage to meet the demand of health care workers for greater control over their schedules, enabling staffing firms to better fill in scheduling gaps.
Digital transformation, accelerated during the pandemic, allows staffing firms to add more texting and email technology, engagement platforms, job boards, analytics, and benchmarking. Automation is enabling clients and candidates to better connect in areas such as job searches, résumé submissions, shift availability, billing information, and video interviewing. SIA points to one example in which temporary staffing platforms allow candidates to serve themselves and directly accept assignments without the need for a recruiter.
Staffing firms are also offering new models to clients, such as direct sourcing and daily pay. According to SIA’s 2022 “Workforce Solutions Buyer Survey,” 80% of clients are using direct sourcing or plan to do so in the coming years. During the pandemic, direct sourcing was advantageous to clients because it provided greater access to talent, reducing the effects of the labor shortage and demonstrating a higher priority than a focus on cost reduction. Another paradigm shift in business processes is occurring in the form of more frequent wage payment options. For example, same-day pay and other earned-wage access programs are becoming widely available and preferred by candidates.
About One80 Intermediaries/Manchester Specialty:
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