Healthcare Staffing Market Analysis By Service (Travel Nurse, Per Diem Nurse, Locum Tenens, Allied Healthcare), By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2018 - 2025

Industry Insights

The global healthcare staffing market size was valued at USD 27.3 billion in 2016 with a CAGR of 5.4%. Increasing geriatric population, geographical penetration of players through partnerships, and increase in awareness about the benefits of contract staffing are likely to drive growth. 

Mergers and acquisition of companies, high demand for healthcare services, shortage of experienced staff, and higher adoption for workforce solutions in developed regions are expected to propel the market growth.

According to WHO, there was a shortage of 7.2 million healthcare workers globally in 2013 and it is anticipated that this shortage will reach 12.9 million by 2035. Hence, increasing shortage of skilled staff coupled with the rising demand for healthcare services is likely to increase the market growth in coming years.

Increasing penetration by companies through mergers and acquisitions is one of the prominent market drivers. For instance, in August 2017, Novation Companies, Inc. acquired Healthcare Staffing, Inc. (HCS). HCS provides healthcare workers and has strong relationships with service providers in Georgia. Hence, the acquisition is expected to help in expanding Novation’s portfolio and geographical reach.

Service Insights

By services, the market has been segmented into travel nurse, per diem nurse, locum tenens, and allied healthcare. In 2016, the allied healthcare segment accounted for the maximum share of the market. However, the demand of locum tenens is growing at the fastest rate during the forecast period. 

Allied healthcare consists of occupational therapists, physical therapists, medical technologists, respiratory therapists, pharmacists, and phlebotomists. Shortage of professionals in developed economies, rising geriatric population, and growing demand due to unhealthy lifestyle are anticipated to drive the growth of the segment.

In January 2017, the Indian government redrafted the bill for regulating allied healthcare services and is likely to bring it under the ambit of a national regulator. The Union Health Ministry of India redrafted the Allied and Healthcare Council Bill aiming at regulating more than 50 types of allied and healthcare professionals. Furthermore, it is expected to set standards for their education and practices. These will affect 40% of the overall healthcare professionals and is projected to increase their shortage in India.

Preference of physicians to work as a locum tenens and cost-efficiency for employers are some of the factors responsible for this segment growth. According to a survey by Staff Care, an AMN Healthcare company, it was observed that the number of physicians working as locum tenens is continuously increasing. In 2002, it was estimated that about 26,000 physicians were working as locum tenens in the U.S., which increased to 40,000 in 2013.

Regional Insights

North America dominated the global market in 2016. This can be attributed to an increase in geriatric population, lack of skilled professionals as compared to demand, and local presence of major players. 

Strategic initiatives by market players such as mergers, acquisitions, and collaborations to increase their network and thereby penetration is anticipated to propel growth during the forecast period. For instance, in April 2016, Advance Medical acquired Rise Medical Staffing, a provider of travel nurse staffing services. The acquisition is expected to increase Advance Medical’s foothold in hospital settings and create an opportunity to expand its travel nursing division.

Europe contributed the significant share in the global healthcare staffing market. Germany, France, and the UK were the major contributing countries in 2016. Shortage of doctors, mergers and acquisition of companies, and improving economy are anticipated to drive the market growth in coming years.

Asia Pacific is expected to observe the fastest growth during the forecast period as the demand for contract staffing is on rise in emerging countries since the past few years. This can be attributed to the fact that the employment of contract staffing does not involve the liabilities normally associated with permanent staff, the recruitment process is faster, and one can choose from a larger patient pool.

Competitive Insights

The market is fragmented in nature. Some of the major players are Adecco Group; Almost Family; AMN Healthcare; CHG Management, Inc.; Cross Country Healthcare, Inc.; Envision Healthcare Corporation; inVentiv Health; Maxim Healthcare Services, Inc.; and TeamHealth. 

Mergers and acquisitions by players to expand their geographical reach and service portfolio are the key strategies to increase their market share. For instance, in June 2016, Envision Healthcare Holdings, Inc. and AmSurg Corporation signed a merger agreement and the new company thus formed was named as Envision Healthcare Corporation. This merger is expected to improve the market share of both companies.

Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis on industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global healthcare staffing market on the basis of service and region:

• Service (Revenue, USD Million, 2014 - 2025)

  • Travel Nurse

  • Per Diem Nurse

  • Locum Tenens

  • Allied Healthcare

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa