U.S. HEALTHCARE STAFFING MARKET ANALYSIS

The U.S. healthcare staffing market was valued at US$ 20.63 Billion in 2022 and is forecast to reach a value of US$ 26.97 Billion by 2030 at a CAGR of 3.4% between 2023 and 2030. The U.S. healthcare staffing market is experiencing strong growth owing to the shortage of healthcare staff and increasing prevalence of chronic disease in the U.S. Moreover, growing number of healthcare facilities and the outbreak of COVID-19 is expected to boost the growth of the market. However, factors such as stringent rules and regulations and rise in adoption of surgical robots are expected to hamper the growth of the U.S. healthcare staffing market.

U.S. Healthcare Staffing Market Drivers:

Shortage of healthcare staff to augment market growth

One of the key factors expected to augment the growth of the U.S. healthcare staffing market during the forecast period is the shortage of healthcare staff across the country. For instance, hospitals are currently facing shortages of registered nurses. 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 face a shortage of up to 124,000 physicians by 2034, including 48,000 primary care physicians, according to AAMC. This in turn is expected to propel the growth of the U.S. healthcare staffing market during the forecast period.

Rising prevalence of chronic disease to drive market growth

Another factor which is driving the growth of the U.S. healthcare staffing market is the increasing prevalence of chronic disease in the U.S. For instance, such a high burden of chronic diseases leads to an increase in number of surgical procedures, which in turn increase the 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 caU.S.es of death and disability in the United States. Moreover, 6 in 10 individuals in the U.S. live with at least one chronic disease, like heart disease and stroke, cancer, or diabetes.

U.S. Healthcare Staffing Market Opportunities:

Rising number of healthcare facilities in the United States is expected to provide significant growth opportunities for players in the U.S. healthcare staffing market. For instance, in April 2021, the U.S. Department of Health and Human Services (HHS) announced US$ 1 Billion support for the health centers' construction and renovation projects from the American Rescue Plan. Federal Government also provide dedicated funding for the modernization of America’s 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 drive growth of the market.

The outbreak of COVID-19 is expected to offer significant growth opportunities for players in the U.S. healthcare staffing market. For instance, 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, over 90% of the medical facilities accepted U.S.ing travel nurses for management of COVID-19 patients in 2020. Travel nurses are integral to creating adequate nurse-to-patient ratios, especially during periods of crisis like the outbreak of COVID-19 (pandemic).

U.S. Healthcare Staffing Market Trends:

Rise in demand for travel nurses is a recent trend

Travel nurses help fill gaps in areas where there is shortage of nurses. Travel nurses are skilled or trained healthcare professionals who work on short-term roles or temporary assignments at clinics, hospitals, and other healthcare organizations worldwide. According to the study conducted in April 2021 by Zippia, Inc., there were 1,696,386 traveling nurses employed in the United States in 2020. This trend is expected to continue over the forecast period.

Growing geriatric population is another trend

Growing geriatric population is leading to increasing demand for medical services and shortage of nurses and other medical staff. Geriatric population is more sU.S.ceptible to diseases and infections, leading to long-term hospitalization. People over 65 are three times more likely to have a hospital stay and twice as likely to visit physician's office, compared with the rest of the population. As per the U.S. CensU.S. Bureau, the number of adults aged 65 or older to grow an estimated 80% between 2020 and 2030. This trend is also expected to continue over the forecast period.

Figure 1. U.S. Healthcare Staffing Market Value (US$ Bn) & Y-o-Y Growth (%), 2017-2030

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U.S. Healthcare Staffing Market Restraints:

Stringent rules and regulations to hinder market growth

One of the key factors expected to hamper the growth of the U.S. 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.

Rise in adoption of surgical robots to hamper market growth

Another factor which is hampering the growth of the U.S. healthcare staffing market is the rise in adoption of surgical robots or rise in number of robotic-assisted surgeries. Surgical robots enables doctors to perform complex surgeries with greater precision, flexibility, and control as compared to traditional techniques. According to the National Center for Biotechnology Information (NCBI), the U.S. has more robotic operations than any other country across the world. The country accounts for 65% of all DaVinci robotic devices installed and 73% of all robotic cases conducted worldwide. This in turn is expected to hamper the market growth.

Figure 2. U.S. Healthcare Staffing Market Share (%), By Service Type, 2023

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U.S. Healthcare Staffing Market Segmentation:

The U.S. healthcare staffing market report is segmented into Service Type.

Based on Service Type, the market is segmented into Travel Nurse Staffing, Per Diem Nurse Staffing, Locum Tenens Staffing, and Allied Healthcare Staffing. Out of which, Travel Nurse Staffing Segment is expected to dominate the market over the forecast period and this is attributed to the rise in demand for travel nurses (owing to the outbreak of COVID-19).

Locum Tenens Staffing Segment is also expected to witness significant growth in the near future and this is owing to the rising shortage of primary care physicians and specialists. Hospitals and clinics prefer locum tenens in peak seasons and when a permanent physician is on vacation and/or a sabbatical, as it is more cost-effective.

U.S. Healthcare Staffing Market: Key Developments

In June 2022, Vibra Healthcare announced the launch of a new bU.S.iness to help with healthcare staffing called Vibra Travels which is a travel nursing and healthcare staffing bU.S.iness.

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 2021, Syntellis Performance Solutions & HFMA's Financial Analytics Leadership Council (FALCO) collaborated to survey the pandemic hospital labor trends now and into the future.

In June 2020, LHC Group entered into an agreement with Orlando Health to enhance Home and Community-Based Services (HCBS) and home health in Florida.

U.S. Healthcare Staffing Market: Key Companies Insights

The U.S. healthcare staffing market is highly competitive. This is attributed to the lack of skilled nursing staff or shortage of healthcare staff across the country, as a result, players in the market are focU.S.ing on launching novel products in the market.

Some of the key players in the U.S. healthcare staffing market are Envision Healthcare Corporation, AMN Healthcare, CHG Management, Inc., Maxim Healthcare Group, Cross Country Healthcare, Inc., Syneos Health, Inc., and Almost Family, Inc., among others.

*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.