Healthcare staffing market growth rates have continued to moderate, with Staffing Industry Analysts' latest US Staffing Industry Forecast projecting 2018 and 2019 growth of 3% and 4%, respectively. After double-digit growth in 2015 and 2016, due largely to millions of newly insured individuals under the Affordable Care Act, market growth tapered down to high single digits in 2017. By Q1 2018, the uninsured proportion of the population of 9% was holding steady with the prior year, according to the National Center for Health Statistics. Several healthcare staffing firms were able to benefit from the previous robust growth trends as SIA’s 2018 List of Fastest-Growing US Staffing Firms reported that 10 of the top 15 fastest growing firms ranked by compounded annual organic revenue growth from 2013 to 2017 had healthcare listed as a top staffing segment served.

Going forward, the 2018 and 2019 growth projections of 3% and 4%, respectively, are supported by the continued macro trends of the growing US economy, aging population, and skill shortages, offset by short-term healthcare system cost reductions and higher utilization of permanent clinicians and overtime hours.

MSP and VMS penetration continues to grow in healthcare staffing. The 2018 National Association of Travel Healthcare Organizations' Travel Nurse Benchmarking Survey reported that 54% of travel nurse revenue was billed through an MSP program in 2017, up from 50% in 2016. An additional 15% of travel nurse revenue in 2017 was billed through a standalone VMS (not associated with an MSP), down slightly from 17% in 2016. In total, 69% of travel nurse revenue was billed either to an MSP and/or VMS in 2017, up from 67% in 2016.

NATHO also reported that aggregate and median travel nurse bill rates remained steady in 2017 compared with 2016. The median travel nurse bill rate in 2017 was $68.57, up only slightly from the $68.02 median rate in 2016. Aggregate gross margin remained steady in 2017 at 26% compared with 2016. 2017 median gross margin was 24.7%, down 60 basis points from the previous year.

Overall, the US healthcare staffing market continues to be supported by growing healthcare employment, which rose by 26,000 in September 2018 according to the Bureau of Labor Statistics. Hospitals added 12,000 jobs and ambulatory healthcare services employment grew by more than 10,000. Over the year, healthcare employment grew by 302,000. In September 2018, the healthcare and social assistance unemployment rate was 2.6%, lower than the overall US unemployment rate of 3.7%.

To download SIA’s latest US Staffing Industry Forecast, click here. And to download SIA’s 2018 List of Fastest-Growing US Staffing Firms, click here.