Key Healthcare Staffing Statistics
20-50%
Productivity increase for institutions adopting a multi-cloud approach with a 30-80% quality improvement (1)
9-in-10
Hospitals to integrate AI-driven technology by 2025 (2)
$286.22B
Forecasted 2030 telemedicine market value — 2023 market value was $115B (3)
86,000
U.S. physician shortage by 2036 (4)
34%
Physician burnout reported in 2023 and 32% for nurses — mainly due to staffing shortages (5)
51.9 Yrs.
The mean age of licensed physicians — indicating and eventual retirement wave (6)
(1)(2) Accenture – The Cloud Imperative in Healthcare; (3) TechReport – Telemedicine Statistics; (4) The Association of American Medical Colleges; (5) KLAS Research; (6) Journal of Medical Regulation
Healthcare Staffing Industry Overview
The U.S. healthcare staffing industry market, valued at $28.2B in 2024(1), is expected to expand at a compound annual growth rate (CAGR) of 6.69% to reach $34.4B in 2030. The travel nurse segment led the market with a market share of 40% and will likely continue to grow over the forecasted period with medical staff shortages and high compensation given to travel nurses as drivers.(2)
Physician shortages, growing geriatric population, the rise of telemedicine and new technology within the recruitment process all contribute to the growth of the healthcare staffing industry.
Several key trends are emerging as the industry transitions:
- Addressing burnout remains a critical aspect of the healthcare staffing industry
- Telehealth continues to grow, prompting staff to learn and be proficient in associated technologies
- Flexible staffing models are becoming key to adjust to demand, reduce costs and address nurse turnover
- The new Lower Costs, More Transparency (LCMT) Act focuses on price transparency and consistent Medicare payments, impacting staffing decisions and cost-efficiency
- DEI initiatives remain prevalent, can improve clinical outcomes, and are important to employees and candidates
- Increasing focus on value-based care calls for effective staffing models and integration of new healthcare roles
- Platform staffing plans to replace traditional applicant tracking systems (ATS), increasing placements and reducing costs
- Rising healthcare expenditure increases outsourcing to recruitment agencies and new agencies are entering the market to take advantage of growth opportunities
(1) IBIS World; (2) Grand View Research
Healthcare Staffing M&A Transactions
— Capital IQ, Cascade Partners
Average EV/EBITDA Multiple
Continued M&A Interest
The outlook for Healthcare Staffing mergers and acquisitions (M&A) volume remains positive as larger firms continue to consolidate the fragmented healthcare staffing industry market and gain access to niche markets. There were 19 transactions in 2023.
Attractive dynamics include:
- Increased need to fill specialized positions such as psychiatrists and locum tenens motivates firms to expand capabilities through strategic add-on acquisitions
- With the rise of telemedicine and AI-driven matching platforms, industry players turn to M&A to access and integrate new technologies quicker and more efficiently
- Recent regulatory changes such as changes in licensing requirements direct companies towards M&A to provide staffing firms with the necessary resources to navigate complex regulatory landscapes effectively
Select Industry Players
U.S. Major Market Segmentation
by Market Revenue, 2024 — IBIS World
Select Private Equity Platforms
Recent Healthcare Staffing Industry M&A Activity
Date | Acquirer | Target | Location |
May-2024 | Knox Lane | All Star Healthcare Solutions | FL |
Apr-2024 | ShiftMed | CareerStaff Unlimited MSP | VA |
Apr-2024 | SnapCare | Medecipher | GA |
Jan-2024 | Aya Healthcare | ID Medical | United Kingdom |
Nov-2023 | Epic Staffing Group | SBG Healthcare | FL |
Nov-2023 | Aya Healthcare | Winnow AI | TN |
Oct-2023 | AMN Healthcare | Medical Search International/DRW Healthcare Staffing | TX |
Jun-2023 | Jackson Healthcare | LRS Healthcare | GA |
Select Cascade Partners Transactions
