Health Care Staffing on Track to Continue to Grow

November 15, 2023

The health care staffing industry continues to grow, according to Coherent Market Insights, and is estimated to be valued at $20.63 billion in 2022. The industry is expected to exhibit a CAGR of 3.4% over the forecast period of 2023 to 2030.

This staffing health care market serves hospitals, clinics, nursing homes, and home health care settings, among other health care sectors. Staffing companies are important in linking health care organizations with trained personnel to ensure treatment continuity.

What’s Driving the Growth?

Several factors are driving the growth behind medical staffing firms. As the baby boomer generation reaches retirement age, a large population segment requires additional medical services, leading to a greater need for health care professionals, including doctors, nurses, home health care aides, and other staff. This leaves a gap for a new generation of health care workers to fill. 

However, a limited number of appropriately trained workers are available to match the demand, resulting in staff shortages. Furthermore, the deficit in trained health care personnel has been exacerbated by a lack of training programs. Many health care careers require specific training and licensing, which can be time-consuming and expensive. Turning to a staffing company enables organizations to get individuals up and running more quickly.

Chronic disease prevalence is on the rise due in part to lifestyle factors such as obesity and sedentary behavior. As a result, there is a larger demand for health care personnel capable of managing and treating these illnesses. Furthermore, advances in medical technology and treatment alternatives have raised the demand for trained health care staff who are informed in these areas.

High turnover rates also plague the health care industry. Health care professionals may leave their professions due to burnout, long hours, and a challenging work environment. High turnover creates a persistent need for health care professionals, which staffing companies fill to maintain continuous care delivery.

Technology Is Helping Health Care Staffing Firms Fill Positions

Staffing firms are leveraging technology to streamline the recruitment process. Applicant tracking systems (ATS), online job boards, and social media platforms can be used to identify potential candidates, automate application processes, and reach a wider audience. Video interviewing tools like Zoom and Microsoft Teams enable virtual interviews, making it easier to assess candidates remotely. 

Online skill assessment platforms help staffing firms evaluate health care candidates’ technical and soft skills. This ensures that candidates possess the specific qualifications needed for the position.

Additionally, AI-powered algorithms can analyze large data sets of candidate information, helping staffing firms identify patterns and predict candidate success. These technologies can enhance candidate-matching efficiency and improve placement quality.

Analytics tools help staffing firms track and analyze recruitment metrics, such as time to fill, candidate satisfaction, and placement success rates. This data-driven approach allows staffing firms to optimize strategies and improve overall performance.

About One80 Intermediaries/Manchester Specialty

Manchester Specialty, a division of One80 Intermediaries, is a national specialty underwriting and insurance program management firm, licensed to do business as a program administrator in all 50 states and D.C. Our agent/broker partners and their Allied Health clients look to us for our expertise, broad product capability, commitment to the market, and the quality and stability of our insurance programs for Home Care, Medical Staffing, Allied Health and Human Services organizations. For more information, call us toll-free 1-855-972-9399, or visit Allied Health Firms – One80 Intermediaries.