TEMPORARY HEALTHCARE STAFFING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global temporary healthcare staffing market was valued US$ 58.01 Bn in 2023 and is expected to reach US$ 80.1 Bn by 2031 growing at a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031.

The demand for temporary and contract healthcare staffing has been rising considerably over the past few years. As healthcare needs and costs continue to increase all over the world, hospitals and other medical facilities are facing significant staffing challenges. With growing patient volumes, an aging population requiring more medical care, and shortages of permanent physicians and nurses, temporary staffing provides much-needed flexibility for facilities.

Global Temporary Healthcare Staffing Market - Regional Insights

• North America is expected to be the largest market for temporary healthcare staffing during the forecast period, accounting for over 43.7% of the market share in 2023. North America has established itself as the dominant region in the global temporary healthcare staffing market. This can largely be attributed to the well-developed healthcare infrastructure and rising demand for quality healthcare services across major countries like the U.S. With the growing geriatric population and increasing prevalence of chronic diseases, there is heavy reliance on temporary staffing services to effectively manage the workforce demand and costs. Several large organizations in this region have also outgrown their permanent hiring capacities, favoring flexibility offered by temporary staffing agencies.
• Asia Pacific is expected to be the second-largest market for temporary healthcare staffing market, accounting for over 25.2% of the market share in 2023. Asia Pacific has emerged as the fastest growing regional market, fueled by rapid economic expansion, growing medical tourism and universal healthcare initiatives in nations such as India, China, Singapore, and South Korea. While the cost of permanent healthcare employment is significant, there is a burgeoning demand for affordably-priced quality services. This provides scope for temporary staffing agencies that can flexibly deploy cost-effective personnel according to seasonal/project-based needs.

                 Figure 1. Global Temporary Healthcare Staffing Market Share (%), By Region, 2023

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Analyst’s Views:

The temporary healthcare staffing market is poised to grow significantly over the coming years. The aging population across developed countries is driving the demand for healthcare services. This is increasing the need for flexible workforce solutions among healthcare providers. Rising chronic disease prevalence is another driver fueling the need for cost-effective staffing alternatives that can help deliver quality care. On the other hand, the workload pressure on regular nurses and other medical staff is pushing them to consider temporary project-based work as well.

Global Temporary Healthcare Staffing Market- Drivers

• Increasing Acquisition by Key Market Player: Increasing adoption of organic growth strategies such as acquisitions is expected to drive the global temporary healthcare staffing market growth over the forecast period. For instance, on November 30, 2023, AMN Healthcare, a healthcare company, announced the acquisition of MSDR. MSDR consists of two healthcare staffing companies that specialize in locum tenens and advanced practices
• Shortage of Permanent Healthcare Staff: The temporary healthcare staffing market has seen significant growth in recent years due to shortages in permanent healthcare staff across various roles and specialties. Hospitals, nursing homes, and other healthcare facilities have faced difficulty finding and retaining full-time nurses, physicians, and other clinical staff. This is due to a variety of factors including an aging population increasing the demand for healthcare services, nurse burnout during the pandemic, and non-competitive salaries compared to travel nursing roles.
• To continue providing quality patient care and meet mandatory staffing requirements, many healthcare organizations have turned to temporary staffing agencies to fill open positions on a contract basis. Registered nurses are in particularly high demand through temporary healthcare staffing arrangements. According to the American Hospital Association, over 70% of hospitals report using traveling nurses and other temporary clinical staff to supplement their workforce. Some facilities now rely on temporary clinical staff to make up over 10% of their headcount.

Global Temporary Healthcare Staffing Market- Opportunities

• Increased Outsourcing of Non-clinical Roles: In addition to clinical personnel, hospitals and other healthcare providers are also outsourcing more non-clinical roles such as logistics, administration, billing, and coding to temporary staffing agencies. With rising costs and administrative burdens, outsourcing non-essential back-office functions allows healthcare organizations to focus internally on patient care while getting flexible support elsewhere as needed. Staffing agencies provide rotations of temporary non-clinical healthcare professionals skilled in various business and operational areas. This helps facilities avoid large permanent headcounts for roles with fluctuating demand while also gaining specialized expertise. The outsourcing of non-clinical healthcare jobs has doubled in the last 5 years according to industry surveys and now represents a significant portion of the temporary healthcare staffing market.

Global Temporary Healthcare Staffing Market – Trends

• Adoption of newer technologies like AI and analytics by staffing agencies: The staffing industry is undergoing tremendous changes with the widespread adoption of technologies like artificial intelligence and advanced data analytics. Healthcare staffing agencies are increasingly leveraging these innovations to streamline their recruitment and placement processes. Artificial Intelligence and machine learning algorithms are empowering agencies to more efficiently match candidates to jobs based on skills, experience, preferences, and other factors. This has accelerated hiring times while improving job fits. Analytics solutions are also providing agencies deep insights into demand patterns, skills gaps, geographic needs, and others. With data-driven insights, agencies can better plan their recruitment strategies, anticipate trends, manage workflows, and optimize their healthcare talent networks.

Global Temporary Healthcare Staffing Market - Restraints

• Healthcare reimbursement changes: Changes in healthcare reimbursement policies globally are impacting the growth of the temporary healthcare staffing market. Many countries are shifting from fee-for-service models to value-based and bundled payment systems. This is aimed at reducing unnecessary costs and improving outcomes. However, this transition is proving challenging for the staffing industry. Under the newer reimbursement models, hospitals and healthcare facilities are under constant pressure to improve efficiency while managing costs. They are no longer reimbursed for each individual service but based on overall quality and value of care delivered. This has made them more selective in their spending including on temporary staffing. Healthcare providers are now focusing on building long-term cost-effective workforce strategies rather than relying on temporary personnel from staffing agencies. Some are even bringing critical temporary roles like nurses in-house on fixed term contracts to gain more control over expenses.
• Rising costs of temporary healthcare staffing: The rising costs of temporary healthcare staffing is posing significant challenges to the growth of the global temporary healthcare staffing market. As the demand for temporary staff rose during the pandemic to manage the increased workload, the costs associated with temporary staff also increased considerably. Healthcare facilities struggled to maintain profitability with the higher spending on temporary staffing services. The costs include not just the wages paid to temporary staff but also additional compliance costs like training, certification, and insurance that need to be factored in by staffing agencies when placing healthcare professionals. With the 'Great Resignation' phenomenon, the demand for nurses and other medical professionals have outstripped supply in many parts of the world. This has given temporary healthcare workers more bargaining power to demand higher wages. Staffing agencies are forced to pay competitive rates and provide other benefits/perks to attract and retain qualified temporary clinical staff.
• Counterbalance: Thus, key market players should form strategic alliances with other providers or healthcare networks to increase the bargaining power with payers and to capitalize on shared resources and ensure that healthcare providers and staff are educated about the latest best practices in documentation and coding, which is essential for maximizing reimbursement.

Figure 2. Global Temporary Healthcare Staffing Market Share (%), By Type, 2023

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Global Temporary Healthcare Staffing Market- Recent Developments

Acquisition and Partnership

• On September 8, 2023, Acacium Group, a global healthcare and life science delivery partner with services and staffing operations across the U.S., the U.K., Europe, Asia Pacific, and Australia, announced that it had acquired Sumo Medical Staffing, a specialist locum tenens agency in U.S. The acquisition helped Acacium Group gain a substantially larger presence across the U.S., expanding the staffing offering to clients and strengthening the company’s position as a leading global healthcare delivery partner.
• In November 2022, SnapNurse, a healthcare staffing provider in the U.S., announced a partnership with Kevala, a contingent workforce management software and supplemental staffing provider, to streamline per diem staffing in healthcare

Top Companies in the Global Temporary Healthcare Staffing Market

• SOLIANT HEALTH
• Envision Healthcare
• Maxim Healthcare Services
• CHG Management, Inc.
• Cross Country Healthcare
• TeamHealth
• Jackson Healthcare
• LocumTenens
• Trustaff
• Aya Healthcare
• Vibra Healthcare
• Ample Healthcare
• Acacium Group
• SnapNurse
• AMN Healthcare
• BrightStar Care
• Triage Staffing

Definition: Temporary healthcare staffing provides hospitals, clinics, and other medical facilities with flexible workforce solutions to meet their changing needs. There are generally two main types of temporary staffing arrangements: temporary and contract staffing. Temporary staffing involves hiring clinical or support personnel for a defined short-term assignment, usually to fill a vacancy or handle a temporary rise in patient volume. Contract staffing places medical professionals like nurses, therapists, or technicians for longer assignments, often ranging from a few months to a couple years.