Talent is in the driver’s seat when it comes to healthcare staffing as the talent shortage has become the talent crisis, but the industry’s future looks bright despite some projected moderation of growth in the near term.

Those were some data points discussed by Barry Asin, president of Staffing Industry Analysts, during his keynote speech today at SIA's Healthcare Staffing Summit in Houston.

Job openings far exceed hires and travel nurse openings remain elevated, Asin noted. Meanwhile, the number of hospital workers is back to early-2020 levels, which doesn’t account for growth over the last two years. On top of this, McKinsey and Co. data indicate the supply of nurses is not likely to grow, and American Medical Colleges data point to the physician shortage accelerating.

“It’s a terrific situation for people in the staffing industry, particularly for people in the healthcare staffing industry who can find the talent, can keep them happy, can give them a package of services and help them feel valued — those are the things they are looking for — and make sure they are paid properly,” Asin said. “All of that is going to lead to success, and it’s going to help you become a partner with your clients. You can get the talent for them.”

On the flip side, Asin warned talent will go somewhere else if a firm is not able to give them the benefits and experience they want.

There were signs of moderating growth, with data from the SIA Pulse survey indicating that revenue growth for healthcare staffing is easing a bit and data from Vivian Health indicating pay for registered nurses is moderating. There’s also a 96% probability of a recession, Asin said, citing data from The Conference Board.

Meanwhile, hospitals are under pressure, with 53% expecting to report negative margins this year; they are looking at a $29 billion increase this year in contract labor costs, according to American Hospital Association data.

Travel nurse revenue had surged by 185% in 2021 and is expected to grow 20% this year. Looking ahead, it is expected to contract by 20% in 2023.

Total US healthcare staffing revenue is expected to fall next year as well to $50.0 billion in 2023 from $55.1 billion this year.

Asin also discussed platform models and the quick growth in this area with traditional staffing firms now adding tech to provide for more online service and platforms taking on some of the aspects of traditional staffing firms.

“We believe that over time, traditional models of healthcare staffing are going to look more like platforms,” Asin said.

Long term, the future is bright for healthcare staffing. Asin cited three factors driving growth: the ongoing talent crisis, new openness to flexible work and digital transformation.

The Healthcare Staffing Summit continues through Friday with more than 1,300 attendees.