Los Angeles, CA (PRWEB) March 25, 2014 -- The temporary medical staffing needs market has a buyer power score of 3.9 out of 5. In the three years to 2013, temporary medical staffing suppliers have rebounded from the heavy decline in revenue that occurred due to the global recession. Starting in 2009, high unemployment and declining corporate profit levels discouraged businesses from hiring new employees, and many companies relied on internal resources to source candidates. “Nevertheless, temporary medical staffing suppliers eventually started to recover lost ground in 2011, with increased federal healthcare reform efforts and a growing senior population creating higher demand for medical services,” says IBISWorld procurement analyst Andrew Rebhan. Suppliers have also benefited from the fundamental shift in hiring practices within the medical sector, with more downstream buyers relying on short-term staff to help maintain patient care capacity and revenue levels.
Despite the forecast rise in service prices through 2016, some factors will positively affect buyer power. “The temporary medical staffing needs market is highly fragmented, which allows buyers to compare a greater number of suppliers while keeping prices competitive among vendors,” says Rebhan. Due to the low capital requirements and relatively stable input costs, buyers do not face substantial risks associated with the supply chain or the average vendor’s financial cost structure. In addition, price volatility has been low over the past three years and is forecast to remain low through 2016.
Buyers will need to effectively balance market conditions with their own staffing needs to bolster their buying power. The opportunity costs of any staff vacancies can be substantial, and the effects of rising healthcare demand and medical staff shortages can shift negotiation power toward suppliers. Buyers will be able to counter these unfavorable trends by establishing contracts with suppliers in order to protect against forecast price increases, or reduce the cost per employee with higher volume staffing agreements. Favorable pricing terms may be more difficult to obtain when sourcing highly technical or in-demand medical specialists. Major suppliers include AMN Healthcare, CHG Healthcare, Jackson Healthcare LLC and Cross Country Healthcare.
For more information, visit IBISWorld’s Temporary Medical Staffing Needs procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of temporary medical staffing services. Suppliers in this market include companies that fill staff vacancies by referring applicants for short-term employment in hospitals, nursing facilities and other healthcare centers. Temporary medical workers are not considered employees of the buyer; rather, they are employees of the staffing agency, which handles all related human resources tasks, including payroll, insurance and benefits. Temporary staffing agencies do not provide any direct supervision of their employees while at the buyer’s work sites.
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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