The global healthcare staffing market was valued at USD 45,221 million in 2018 and is expected to grow at a CAGR of 5.2% during the forecast period.
Healthcare staffing refers to the outsourcing of healthcare staff from third-party vendors to the healthcare units. The facility directs healthcare units to avail of staff without the involvement of a long recruitment process. In the last few years, healthcare staffing has been gaining huge popularity among the research centers, hospitals, and clinics due to the shortage of skilled staff. As per the WHO, in 2013, there were only 7.2 million healthcare workers across the globe. However, the number is expected to reach 12.72 million by 2035, which is further boosting the demand for healthcare staffing across the globe. Other factors driving the market include the increasing geriatric population, rising awareness regarding the benefits of contract staffing, rapidly expanding healthcare infrastructure, growing population, and increasing healthcare expenditure.
By service, the market is segmented into a travel nurse, per diem nurse, locum tenens, and allied healthcare.
The allied healthcare segment is grabbing the highest share in the healthcare staffing market. In 2018, the allied healthcare segment registered around USD 3.2 billion, with an annual growth rate of 6%. This can be attributed to the growing government support, shortage of healthcare professionals in developed nations, increasing geriatric population, and rising healthcare expenditure. For instance, In January 2017, the government of India passed a bill that aims to regulate allied healthcare services, which is further boosting the segment growth.
The locum tenens segment is estimated to grow with the fastest CAGR. In 2017, it registered around USD 2.7 billion and is expected to grow at a CAGR of 8% during the forecast period. This can be accredited to the shifting preference of physicians towards locum tenens due to its cost-efficiency is driving the market growth.
The travel nurse segment is grabbing a significant share in the healthcare staffing market. The segment was valued at USD 2.2 billion and is expected to grow at a CAGR of 7%. As per the National Association of Travel Healthcare Organizations, the travel nurse revenue grew 23% in 2017. Additionally, several states are passing a number of legislations to implement staffing ratios due to the shortage of skilled professionals, which is further boosting the segment growth.
Per Diem nurse was valued at USD 7.31 billion in 2017 and is expected to grow at a CAGR of 4.9% annual growth rate in 2018. This can be attributed to the increasing geriatric population and the rising demand for better healthcare facilities. For the record, the healthcare staffing agencies provide per diem nurses allied with managed services programs. The companies also manage their data efficiently to match the assignments to the right clinicians and fulfill the demand, which is further boosting the market growth.
Regionally, the healthcare staffing market is segmented into the Americas, Europe, Asia Pacific, and The Middle East and Africa (MEA)
In 2018, North America dominated the global healthcare staffing market on account of rising geriatric population, presence of major market players, surge in demand for registered nurses and other medical professionals, and rising healthcare expenditure. The geriatric population is more susceptible to diseases that require acute care, which is further boosting the demand for skilled healthcare staff. As per the Integrated Management Services (IMS) Health, nearly 90% of geriatrics have at least one chronic condition and about 70% have multiple conditions. Moreover, in the U.S., the geriatric population aged 65 and above is predicted to grow from 40 million in 2010 to 73 million by 2030 at a CAGR of 3% every year.
In the last few years, the U.S. healthcare staffing market has been witnessing significant growth. The country is backed with the presence of leading players that are engaging in umpteen mergers and collaborations to sustain in the cut-throat competition. In April 2016, Advance Medical acquired Rise Medical Staffing, a provider of travel nurse staffing services, to increase the popularity of Advance Medical’s foothold in hospital settings to expand its geographical footprint.
The North America healthcare staffing market is expected to reach USD 28 billion by 2023 at a CAGR of 9.3% annually.
Europe is second in the global healthcare staffing market. The major contributors to the market include the U.K, France, and Germany. The countries are backed with the presence of leading players who are engaging in several mergers and acquisitions for providing better healthcare staffing facilities. For instance, on 25th February 2019, Black Diamond Networks, Inc. acquired American Personnel Staffing’s BioSciences Division to combine the high-level permanent search capabilities along with mid-level contract placement. As per the WHO, in the EU, the age and gender structure of the health workforce in Europe is changing gradually. The proportion of female physicians has witnessed a significant hike, which is about 52% (4% higher than last year).
Asia Pacific is the fastest growing healthcare staffing market and will continue the same during the forecast period. This can be attributed to the rising awareness about contract staffing, increasing investments in the field, growing government support, and rising geriatric population. The key markets of the region include China, India, and Japan. The countries have the presence of leading players that are arduously working to provide better healthcare staffing services to sustain in the raging competition.
As per the Dubai Health Authority (DHA), in 2018, Dubai had one of the highest physician ratios across the globe. According to the U.A.E. Ministry of Health and Prevention, in 2017, the U.A.E. had around 5.68 nurses for every 1,000 people. To increase the number even further, the government of the U.A.E. has developed several strategies, including Vision 2021. Whereas, in Africa, the government has developed Human Resource for Health South Africa (HRH) initiative to serve as a strategic guide to undertake a range of activities, make new policies, develop new programs, make detailed staffing plans for new service strategies, and manage the healthcare workforce in a precise fashion that motivates to provide quality healthcare. The above-mentioned initiatives are likely to be undertaken by provincial departments of health, Faculties of Health Sciences, the professional associations, labor organizations, Statutory Councils, health care managers, professionals, and health care workers in the years to come, which is further boosting the market growth.
Some of the key players in the healthcare staffing market include
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The global healthcare staffing market is fragmented in nature. Several large and small-scale players are focusing on price, brand, and new product development to expand their consumer base. Some of the key players are engaging in acquisitions, collaborations, and partnerships to gain a competitive edge. For instance, TeamHealth Holdings Inc. collaborated with St. David’s HealthCare to expand its services across Texas. The company will further acquire full operations of the emergency medicine group, Capitol Emergency Associates (CEA), and hospital medicine group Central Texas Hospitalist (CTH). It is also planning to partner with Hospital Internists of Austin (HIA) to provide management and staffing for St. David’s HealthCare’s six hospital-based emergency departments, six hospital medicine locations, four free-standing emergency departments, and four urgent care facilities throughout Central Texas.
Similarly, Adecco Group is a leading player in the market for healthcare staffing. It has established a strong brand identity and diverse product portfolio and is adhering to the extensive focus on Professional Staffing & Solutions to sustain in the market competition. The global leading brands in Professional Staffing & Solutions are Spring Professional, Badenoch & Clark, and Vettery and YOSS Modis.