U.S. Healthcare Staffing Market Is Estimated To Witness Strong Growth Owing To Opportunity In Addressing Shortage Of Hea

The U.S. healthcare staffing market comprises recruitment and placement of physicians, nurses and other healthcare personnel. Healthcare staffing helps hospitals and clinics cope with temporary hires for core staff, coverage for extended sick leaves and project-based hiring needs. It also provides flexibility to facilities to handle fluctuations in patient volumes.

The U.S. healthcare staffing market is estimated to be valued at US$ 21.33 billion in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Addressing shortage of healthcare workforce presents a huge market opportunity for the U.S. healthcare staffing market. There is a substantial shortage of various healthcare professionals like physicians, nurses and technicians across different specialties. As per the Association of American Medical Colleges, the U.S. could face a shortage of up to 139,000 physicians by 2033. Similarly, Bureau of Labor Statistics projects a shortage of over 200,000 nurses over the next decade. Increased M&A activity among staffing agencies and tie-ups with healthcare facilities can help meet this rising demand for healthcare staff and drive significant growth for players in this market.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the U.S. healthcare staffing market is moderate. New players need heavy capital investments and complex regulatory requirements to enter the market.

Bargaining power of buyers: The bargaining power of buyers in the U.S. healthcare staffing market is high. Buyers have numerous large staffing companies to choose from giving them power to negotiate on price and staff quality.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. While there is a large talent pool, specialized skills require extensive training giving suppliers some control over pricing.

Threat of new substitutes: The threat from substitutes is low. Healthcare staffing plays a critical role in hospitals and other care facilities. There are few alternatives that can replace temporary healthcare professionals.

Competitive rivalry: The competitive rivalry is high with players competing on factors like pricing, service quality and talent availability.

SWOT Analysis

Strengths: Large network of healthcare professionals, ability to support complex staffing needs for hospitals and facilities, established brands with long experience.

Weaknesses: Rising operating costs, intense competition, shortage of specialized skills in some regions.

Opportunities: Growing need for healthcare services from aging population, increasing demand for travel nurses and allied health professionals, new areas like telehealth offering scope.

Threats: Economic downturns reducing healthcare budgets, regulatory changes, natural calamities affecting business continuity.

Key Takeaways

The U.S. Healthcare Staffing Market Share is expected to witness high growth driven by factors like increasing healthcare costs, shortage of skilled professionals and growing demand from an aging population. The market size for 2023 is estimated at US$ 21.33 Bn indicating substantial untapped potential over the forecast period.

Regional analysis indicates that Western states like California and New York will remain dominant owing to large healthcare infrastructure and more private insurance coverage. However, Southern and Midwestern regions are growing faster led by demand from rural hospitals and clinics.

Key players operating in the U.S. healthcare staffing market are Solvay SA, Nippon Chemic, Adecco Group AG, CHG Healthcare Services, and AMN Healthcare. The players face intense competition on total cost of service while requiring to offer a wide range of specialty skills across different locations to win large network contracts from hospitals. Scaling up operations through M&A remains a key strategy for players to expand their geographic footprint and service capabilities.