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Per diem staffing: The AI of the staffing industry

Staffing Stream

Per diem staffing: The AI of the staffing industry

Aaron Littles
| September 24, 2024
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Throughout my career, I have primarily worked in per diem staffing within the healthcare sector. Having entered the staffing industry at the forefront of platform technology, I admit a certain bias toward this model. I have witnessed per diem nurse staffing evolve from pre-app systems to post-app innovations, and now to the integration of AI and machine learning.

What stands out to me is that 25 years ago, the technology involved an intricate pager and callback system that could schedule a per diem clinician faster than a home phone line. Today, it’s a push notification or text linked back to a platform. My observation is this: Per diem staffing isn’t going away (nor is travel), and technology is only improving the efficiency of staffing within this segment of the healthcare ecosystem.

I believe there is a lot of buzz about AI, but my argument is that in the people business, well… we still need people. Subsequently, if we can deploy those people in micro units, there can be a tremendous benefit to all parties involved. This is why I see platform-based per diem as still the next greatest technology within our industry.

Looking ahead to the next three to five years, platform technology will be as essential for staffing agencies as having a website is today. Once you have the right tools, managing per diem staffing becomes more feasible. However, the next challenge is the business model. Should you invest in onboarding clinicians who may not work immediately (or ever)? This is the proverbial $64,000 question (a reference to our drug tests and background checks one month at Gale… but I digress).

Now enter actual AI. I envision a future where an “AI stack” (may I coin that term?) can handle vetting, onboarding, deploying and paying clinicians while also addressing issues that arise during the scheduling process. This would make per diem staffing more accessible, even for mid-sized firms. The unsettling reality is that this future might not be far off.

So, what should a staffing company do? Seek opportunities to expand your business model. In business we must be flexible, and new verticals may just be one client away. I also believe enough great technology already exists to execute a per diem model with limited investment. Additionally, as the vendors within your tech stack evolve, AI will likely integrate itself into your systems, eliminating the need for you to build it from scratch.

If per diem staffing doesn’t align with your goals, that’s perfectly fine. Per diem can be a 24/7/365 commitment and is not for the faint of heart. However, as the industry seeks ways to add value and recover from lost travel revenue, evaluating this segment of healthcare is not just a good idea but a necessity for both scrappy entrepreneurs and billion-dollar firms facing significant sales losses.

I remain optimistic about the future for staffing firms, particularly those focused on healthcare, and I encourage everyone to explore creative solutions to client problems, including the potential for a per diem division. Although per diem is not a new concept, the ability to effectively manage this program has been made more efficient with the new and evolving technologies out there. Don’t overlook the “AI” that might be right in front of you.