Healthcare Staffing Market Size, Share & Trends Analysis Report By Service (Per Diem Nurse, Travel Nurse, Locum Tenens, Allied Healthcare), By Region, Vendor Landscape, And Segment Forecasts, 2019 - 2025

Industry Insights

The global healthcare staffing market size was valued at USD 29.86 billion in 2018. It is poised to register a CAGR of around 6.0% over the forecast period. Rise in geriatric population has played a vital role in the growth of the market over the past few years. Geographical penetration of players through partnerships and rising awareness regarding benefits of contract staffing are likely to drive the market.

Flexible schedules, travel opportunities, short-term assignments, and clinical experience at different locations are luring healthcare staff to work as locum tenens or travel nurses. Thus, increasing preference of staff to work temporarily is expected to further boost market growth.

Dearth of experienced staff and strong demand for healthcare services are anticipated to stimulate the growth of the market. Mergers and acquisition of companies and heightened adoption of workforce solutions in developed regions are also projected to work in favor of the overall market.

According to WHO, there was a shortage of 7.2 million healthcare workers across the world in 2013. It is poised that this shortage will reach 12.9 million by 2035. Hence, increasing shortage of skilled staff coupled with surging demand for healthcare services is likely to augment the market in the coming years.

Influx of new players along with growing prominence of existing companies through mergers and acquisitions is one of the primary growth stimulants for the market. 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 service, the market has been segmented into travel nurse, per diem nurse, locum tenens, and allied healthcare. In 2018, the allied healthcare segment accounted for the leading revenue share in the market. However, locum tenens is estimated to post the fastest CAGR 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 contribute to the growth of the segment.

In January 2017, the Indian government redrafted the bill for regulating allied healthcare services. It is projected 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 poised to set standards for their education and practices. These will affect 40.0% of the overall healthcare professionals and is likely to increase their shortage in India.

Preference of physicians to work as locum tenens and cost-efficiency for employers are some of the factors responsible for the growth of the segment. According to a survey by Staff Care, an AMN Healthcare company, it was observed that the number of physicians working as locum tenens is continually increasing.

Regional Insights

North America dominated the global healthcare staffing market in 2018. This can be attributed to increasing 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 expected to propel the market in the region 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 estimated to increase Advance Medical’s foothold in hospital settings and create an opportunity to expand its travel nursing division.

Europe also held a sizeable share in the market in 2018. Germany, France, and the U.K. were the major contributing countries in the same year. Shortage of doctors, mergers and acquisitions of companies, and improving economic conditions are anticipated to boost the growth of the market in the coming years.

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

Healthcare Staffing Market Share 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 to expand geographical reach and service portfolio are the key strategies being undertaken by key players 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 poised to improve market share of both the companies.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the 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 report based on service and region:

• Service Outlook (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

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • South Africa