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The global healthcare staffing market is expected to grow at a CAGR of around 5.2% over the forecast period 2019 to 2026 and reach the market value of around US$ 45.2 billion by 2026.

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The North America region accounted for the maximum share of the global healthcare staffing market in 2018 due to a lack of skilled professionals as compared to demand, cost-cutting of hospitals and healthcare supplier, and preference of healthcare professionals to work independently. Presence of major service providers in the region is another key factor for the dominance in the market. Strategic initiatives such as mergers and collaborations by these players further propel the market growth. For instance, in June 2019, AMN Healthcare acquired Advanced Medical Personnel Services, Inc., an allied and nurse staffing agency that serves clinics, hospitals, skilled nursing facilities, schools, and home health settings. With this acquisition, AMN healthcare expands its allied professionals and nursing staff along with the number of clients. Asia Pacific is anticipated to grow at the fastest rate during the forecast period. This can be attributed to increasing awareness about the advantages associated with contract staffing. Contract staffing does not involve liabilities that normally associated with permanent staff, one can choose from a larger pool, and the recruitment process is faster. India, China, Singapore, Australia, and Japan are the key markets in the Asia Pacific region.

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Based on the service, the global healthcare staffing market is divided into locum tenens, per diem nurse, travel nurse, and allied healthcare. In 2018, the allied healthcare segment accounted for the largest segment of the market. However, the locum tenens segment is expected to observe the fastest growth during the forecast period. The allied healthcare segment consists of physical therapists, occupational therapists, pharmacists, and respiratory therapists. The rising demand of these professionals due to the increasing geriatric population and chronic disease patients and shortage of skilled service providers are the key factors for the dominance of the segment in the market. Furthermore, several allied professionals choose to work in the contract due to flexibility for the work and opportunity to work with various organizations. According to the JOLTS survey in the U.S., a wide gap has found between job openings and job hires in the healthcare field. For instance, in January 2016, about 1,046,000openings were there in the healthcare sector and 519,000 job hires that means about half millions of unfilled jobs. The gap has been growing since 2014.

Key operating players in the healthcare staffing market are Almost Family; Adecco Group; AMN Healthcare; Cross Country Healthcare, Inc.; CHG Management, Inc.; Envision Healthcare Corporation; General Healthcare Resources, Inc.; Jackson Healthcare, Maxim Healthcare Services, Inc.; inVentiv Health; Local Staff, LLC; and TeamHealth. Collaboration and mergers of the service providers to expand the geographical reach and service portfolio are the key strategies being adopted by the market players.

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Some of the key observations regarding the healthcare staffing industry include:

• In October 2019, CHG Healthcare acquired Modio Health, a physician credentialing company. Through this acquisition, CHG is trying to improve the credentialing for employees and the thousands of healthcare facilities it works with, to make the process safe, faster, and cost-effective.
• In March 2019, Aveanna Healthcare acquired the home healthcare unit of Maxim Healthcare Services. However, Maxim’s population health & wellness divisions and staffing services are not part of the acquisition agreement. Through this transaction, the company expanded its existing division of home healthcare.
• In December 2018, CRG acquired Allied Healthcare to provide service for 13,000 disabled and older people in the UK.
• In October 2018, Envision Healthcare Corporation acquired by KKR, a global investment firm. KKR is expecting high returns over its investment through the acquisition of Envision Healthcare Corporation.
• In July 2018, Humana, a private equity firm, acquired Kindred Healthcare. Kindred is one of the largest providers of the senior and post-acute care in the U.S. The company also operates about 75 long term care hospitals and 19 inpatient rehabilitation centers.
• In April 2018, LHC Group and Almost Family merged together and became 2^nd largest home healthcare service provider with more than 31,000 employees in 36 states of the U.S. Through this merger, companies can provide better coordinating home health and post-acute services to patients.

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