U.S. Healthcare Staffing Market Update Q1 2023
Read more about M&A activity and trends in this sector
U.S. Healthcare Staffing Market Update
Download PDFMarket Update and Overview
Capital Markets Update
- Macro-economic issues (e.g., inflation, Ukraine conflict) have led to significant decline in the public capital markets since its January 2022 peak
- While positive indicators for inflation appeared to improve investor outlook for 2023 at the onset of the year, the failure of SVB Financial, Credit Suisse’s distressed sale to UBS, and ongoing uncertainty of regional U.S. banks has created significant market volatility
- Despite this market volatility, the healthcare staffing sector continues to outperform the broader markets with the two major publicly-traded companies (AMN Healthcare Services and Cross Country Healthcare) posting gains of 33.6% and 100.2%, respectively, as compared to a 26.1% gain in the S&P 500, since the beginning of 2020
- Healthcare staffing M&A activity remains strong as aging of the U.S. population continues to increase demand for medical services, exacerbated by shortages of nurses, physicians, and other healthcare professionals.
Market Performance (Since Pre-Pandemic)
Healthcare Staffing M&A Activity
Factors Impacting Healthcare Staffing
Aging Population
- The population of seniors (those 65 years of age or above) is expected to grow in both number and percentage of the population, reaching 73.1 million and 20.6% of the population by 2030
Increased Healthcare Spend
- Seniors are living longer with 80% of this population having more than one chronic condition, which will lead to continued increase in demand for healthcare services
- As a result, Medicare spend is expected reach $1.8 trillion by 2031, representing approximately 14% annual growth over 2021 Medicare spending
Staffing Shortage
- Despite the expected increase in demand for healthcare services, the industry is seeing an increasing shortage of nurses, physicians, and other clinical staff
- Primary causes for the shortage include a decreasing number of graduates, higher attrition due to an aging workforce, and higher levels of burnout resulting from the COVID pandemic
Large Addressable Market for Staffing Services
- As a result, the healthcare industry is seeing a significant increase in demand for staffing services that provide both permanent and temporary placement of nurse, physicians, and other healthcare professionals
- Currently estimated at $18.5 billion in 2022, the industry is expected to grow to $26.7 billion over the next five years
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U.S. Healthcare Staffing Market Update
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