The continued drop in the national unemployment rate, an aging population and implementation of healthcare reform will drive up demand.
Los Angeles, CA (PRWEB) October 15, 2013
Permanent medical staff recruitment services have a buyer power score of 3.4 out of 5. In the three years to 2013, recruitment services have rebounded from a heavy decline in revenue that occurred due to the global recession. High unemployment rates during the recession meant that many businesses were unwilling to bring in new talent, let alone pay for another company to source candidates. Nevertheless, medical staff recruitment services are forecast to experience a boom in the three years to 2016, with federal healthcare reform and an increasing senior population being the main catalysts of higher demand for medical services. “The national unemployment rate has been decreasing over the past three years and is expected to continue its decline over the next three years, benefiting suppliers,” says IBISWorld procurement analyst Andrew Rebhan.
Despite an unfavorable price forecast, some factors within the permanent medical staff recruitment services market are expected to benefit buyer power. This market has a low market share concentration, allowing for more options for buyers to choose from. There is also low risk in terms of vendor financial stability, and due to the low requirement of purchases and capital costs, suppliers such as TeamHealth Holdings and Maxim Healthcare Services Inc. do not face high risk pertaining to inputs from higher up the supply chain. “As demand for medical care continues to grow,” adds Rebhan, “buyers should ensure that their suppliers are capable of meeting the demands for specialized medical positions that are facing supply shortages.”
Sourcing candidates for permanent medical staff positions can be costly for buyers, both in terms of the timeline of recruitment and the loss of revenue associated with any vacancies that go unfilled for some time. Recruitment services are used to save on both time and costs for buyers, and are an alternative to spending on salaries for internal recruiters. The cost savings, however, will depend upon the size of the vendor and their recruiting efficiency. Many buyers will find that they do not possess the resources to fulfill their medical staff needs without the help of external recruiters. For more information, visit IBISWorld’s Permanent Medical Staff Recruitment Services procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of permanent medical staff recruitment services. Suppliers of these recruitment services list employment vacancies and refer applicants for employment in hospitals, care centers and other medical facilities. Those who are recruited are not employees of the recruitment agency. This report does not cover contract employment, temp-to-perm, or other staffing services that are typically used for short-term hiring needs.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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