Locum Tenens Market Growth Assessment: 2024 Update
Locum Tenens Market Growth Assessment: 2024 Update
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Locum Tenens Market Growth Assessment: 2024 Update
- The US is experiencing a surge in national health expenditure, hitting a record $4.8 trillion in 2023, according to new projections from the Office of the Actuary. Over the next decade, these expenditures are expected to grow at an average rate of 5.6%, to reach $7.7 trillion. These estimates suggest that health spending has surpassed nominal economic growth, with implications for physicians such as increased revenue for medical practices and investments in medical technology.
- US physician compensation grew 3% last year, but with the continued cuts to the Medicare Physician Fee Schedule, many physicians feel they are making less than in years past. However, specialists earned about 44% more than a primary care physician.
- In 2023, total active physicians grew 2% to reach 1,010,892, which is below the Bureau of Labor Statistics (BLS) projected average annual growth rate of 4%. If growth falls short of BLS projections, there could be widespread challenges in healthcare including longer wait times for patients, increased workload for current physicians, compensation competition, and negative impacts on access to care, specifically in underserved communities.
- Physicians under the age of 45 have rates of burnout and have lower wellbeing compared to physicians over the age of 45, according to a 2024 survey by The Physicians Foundation. This may be related to primary care physicians having sustained stressful interactions with patients and having less control over their work environment.
- A primary driver of growth in the locum tenens segment of the healthcare sector is the aging population. In addition, the prevalence of chronic conditions such as diabetes, cancer, and heart disease are also rising, necessitating physician-supervised care. However, one factor that is helping to ease the load on physicians is that advanced practice providers are increasingly managing cases that were historically managed by physicians.
- According to updated projections published by the Association of American Medical Colleges (AAMC) in 2024, the US will face a physician shortage of up to 86,000 physicians by 2036. In addition to the aging population driving increased physician demand, a large portion of the physician workforce is nearing retirement age. A notable portion of physicians will reach retirement age within the next ten years.
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