The past two years have brought unprecedented growth in the US healthcare staffing industry, as healthcare providers have turned to staffing suppliers for help with crisis needs related to the pandemic and also as a vital source for workers in an environment where job openings far exceed the supply of readily available candidates. But in addition to recent conditions, there are a number of structural factors that are supporting the continued expansion of the healthcare staffing industry. These longer-term trends are the subject of SIA’s recently published “US Healthcare Staffing Market Assessment” report. This article takes a high-level look at some of the longer-term trends that are driving demand for healthcare professionals over the longer term. Specifically, it touches on trends impacting physicians, nurse practitioners and registered nurses.
Physicians. As demand for healthcare services continues to grow, demand for physicians is expected to remain robust. For staffing firms, this means robust demand for permanent placement services as well as demand for temporary assignments, also known as locum tenens. A recent study by the Association of American Medical Colleges projected that by 2034, the country could see a physician shortage of between 38,000 and 124,000 medical doctors. The pandemic has called attention to the variances in access to healthcare services and accentuated the essential role physicians play in the basic framework of the healthcare system. As the demand for physicians increases, staffing firms have the opportunity to step up to the challenge of providing the full range of physician specialties that are needed, particularly as the US population ages and more care is needed.
Nurse practitioners. In addition to physicians, the increasing demand for nurse practitioners shows no signs of diminishing as the need to accommodate suspended surgeries and other medical care resumes. According to the Bureau of Labor Statistics, employment of nurse practitioners is projected to grow 45% from 2020 to 2030, much faster than the 7.7% growth rate for all US occupations. Nurse practitioners are trained to deliver many of the same services that physicians provide, typically at a lower cost and with easier access to care based on a varied work setting. According to the American Association of Nurse Practitioners, approximately 90% of NPs serve patients 66 years of age and older, are certified in primary care and have prescriptive privileges in all 50 states. By 2030, the entire baby boomer generation will be aged 65 or greater, and NPs are primed to meet the care needed. As the provider shortage forges ahead, staffing firms have an opportunity to address patient demand by supplying NPs, specifically those in primary care.
Registered nurses. Meanwhile, the pandemic has placed a heavy strain on RNs and the healthcare system where a nursing shortage already existed and resources were limited. With more advanced and easily accessible healthcare, the aging population requires more age-related health services, consequently adding more pressure to an already fatigued healthcare system. The increase in patient demand and an aging nursing workforce has exacerbated the nursing shortage. There are over 194,000 openings for registered nurses each year according to the Bureau of Labor Statistics, with nursing schools and graduate programs working to accommodate increased demand. Employment of registered nurses is projected to grow 9% from 2020 to 2030 according to the Bureau of Labor Statistics. The opportunities for healthcare staffing firms are sizeable as the demand for incoming nurses continues long-term.
The complexities involved in meeting healthcare demand in times of a critical shortage of nurses and providers are considerable, and there is no quick fix. However, staffing firms are positioned well to slow down the shortage and meet demand with contingent staff who can perform at the same levels as permanent staff. Indeed, as the healthcare delivery system continues to evolve, staffing firms are increasing their value add by not only offering contingent staff, but also by acting as partners to hospitals and advising on talent acquisition strategy and by offering a range of workforce solutions.
For more discussion of long-term trends in healthcare staffing, we invite our corporate members to view the full report.
