As healthcare reform continues to gain full steam and healthcare facilities seek to hire more workers, demand for skilled medical staff is forecast to surge
Los Angeles, CA (PRWEB) July 18, 2014
Permanent medical staffing services have a buyer power score of 3.6 out of 5. In the three years to 2014, recruitment services have rebounded on the back of improving economic conditions and favorable demographic trends that have prompted buyers to bring in new talent, bolstering demand and prices for staffing services. During the period, the labor market has exhibited positive growth, with the national unemployment rate falling each year. In the three years to 2017, the price of staffing services is forecast to rise, with healthcare reform and an increasing senior population supporting heightened demand for medical services. “The projected shortage of medical professionals will likely give suppliers stronger hand in price negotiation as healthcare providers will experience a strong need for skilled physicians, nurses and other medical personnel,” says IBISWorld business research analyst Anna Son.
Despite an unfavorable price forecast, some factors are expected to benefit buyer power. This market has a low market share concentration, presenting buyers with more options to choose from. There is also low risk in terms of vendor financial stability. Due to the low requirement of purchases and capital costs, suppliers do not face high risk pertaining to inputs from higher up the supply chain. “As demand for medical care continues to grow, buyers should ensure that their suppliers are capable of meeting the demands for specialized medical positions that are facing supply shortages,” says Son.
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. However, the cost savings will depend on 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. Major vendors include AMN Healthcare, C&A Industries Inc., CHG Healthcare Services and Cross Country Healthcare. For more information, visit IBISWorld’s Permanent Medical Staffing procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of permanent medical staffing 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, but of the company who hires them. 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
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.