While the travel nurse market is settling into a new normal after experiencing robust growth in 2021 and 2022, the locum tenens segment of the healthcare staffing industry is booming. After experiencing 27% market growth in 2022, SIA projects 12% expansion in the locum tenens segment of the healthcare staffing sector in 2023 followed by further growth of 7% this year, according to the US Staffing Industry Forecast. In this article, we briefly highlight three recent trends in locum tenens from SIA’s Locum Tenens Market Growth Assessment report.
Growth drivers
The primary driver of growth in the locum tenens segment of the healthcare staffing sector is the aging population. The older population (aged 65 and over) increased from 40.3 million in 2010 to 55.8 million in 2020, a growth rate of more than 38%, according to Census.gov. This was the fastest growth rate of any decade since 1880 to 1890. As the population ages, the number of older individuals with health problems increases, resulting in increased demand for complex care plans that are typically provided by physicians. According to the Association of American Medical Colleges, the current projected physician shortage in the US is 124,000 physicians by 2034. This imbalance of demand over supply has created staffing challenges for health systems that have increased their utilization of locum tenens to fill gaps in their schedules and meet rising patient demand.
Telehealth
US telehealth utilization skyrocketed during the pandemic, up from 910,940 users in 2020 (pre-pandemic) to more than 8.5 million in 2022, according to the Centers for Medicare and Medicaid Services. Telehealth allowed individuals to receive online healthcare from a provider. For patients that have a mix of medical needs — including chronic conditions and behavioral health needs — home healthcare (or care at home) proved to be a successful solution. The older population benefited from the additional delivery options, as did individuals who experienced barriers to care, such as those living in rural areas.
Burnout and artificial intelligence
The most-recent study by the American Medical Association found that in 2022, the overall burnout rate among physicians declined to 53%, down from 63% in 2021. Although the percentage of burnout among physicians and advanced practice providers has declined, rates are still elevated compared to pre-pandemic at 38%. While many factors contribute to burnout, the burnout epidemic is often associated with system inefficiencies, administrative burdens and increased regulation. Some hospitals are leveraging artificial intelligence to reduce administrative tasks that contribute to burnout using AI-powered apps. These apps can be used for transcription and documentation following patient visits, saving clinicians time on burdensome administrative tasks, allowing them to work at the top of their license, thereby reducing burnout.
In addition to administrative tasks, staffing firms have increased their utilization of AI in locum tenens recruitment. Although recruitment of physicians and advanced practice providers still necessitates a human component, AI can reduce reliance on humans by automating routine tasks, simplifying processes and improving operational efficiencies.
This may provide staffing firms with a competitive advantage in attracting and hiring quality talent as well as the potential for higher company profits as a result of quicker time-to-fill for healthcare clients.
For more insight into the locum tenens staffing market, corporate members can read the Locum Tenens Market Growth Assessment report.
