Medical Staffing Industry: A Service Lines Overview
According to a Healthcare Staffing Industry Overview Survey conducted by Harris Williams and Company, the healthcare staffing industry is an 11.1 billion-dollar industry with an annual expected growth rate of seven percent. Within the industry, there are four main market types: Allied Health, Per-Diem Nursing, Travel Nursing, and Locum Tenens. The Allied Health market is a 3.2 billion-industry with an annual expected growth rate of six percent. The Per-Diem Nursing market is a three-billion-dollar industry with an annual expected growth rate of five percent. The Travel Nursing market is a 2.2 billion-dollar industry with an annual expected growth rate of five percent. The Locum Tenens market is a 2.7 billion-dollar industry with an annual expected growth rate of eight percent.
Each of the industries serve a specific customer need. The Allied Health and Locum Tenens markets serve a client need specific to temporary hiring. The Per-Diem market serves a client need specific to backfilling positions when permanent staff members are out on sick leave or vacation. The Travel market serves a client need specific to seasonal staffing needs. As a result, Temporary/Contract Nurse Staffing needs have significantly increased, making this area of the healthcare industry quite lucrative, with gross margins ranging from 18-26 percent. Specifically, the growing trend includes clinical staff such as nurses and Allied Health professionals. The Bureau of Labor Statistics projects by the year 2025 the United States will be down 90,000 physicians and 500,000 nurses. There is also a growing trend in the need for non-clinical administrative staff such as medical receptionists, medical billers, and medical coding professionals.
Regardless of whether you choose to open a medical staffing agency within the Allied Health, Locum Tenens, Per-Diem Nursing, or Travel Nursing markets, you are bridging the clinician-patient gap within the healthcare industry.