Healthcare Staffing in U.S. to Grow Nearly 14% Annually
NEW YORK, Nov. 7, 2016 /PRNewswire/ -- Reportlinker Review is a series of posts featuring Innovations, Social and Economic Megatrends to understand the World of Tomorrow. Each post is illustrated with statistics for one industry.
Reportlinker Review in a nutshell
- BelHealth purchases AHS Staffing for undisclosed amount
- BelHealth plans to diversify services
- AHS Staffing appoints new chairman
How is the market ?
The healthcare staffing market in the United States is expected to grow at a compound annual growth rate (CAGR) of 13.7% by 2021, according to Beige Marketing Intelligence.
Healthcare staffing agencies work like traditional employment agencies. They place temporary and permanent employees in various healthcare roles including hospitals, clinics and private practices.
Equity firm BelHealth Investment Partners recently purchased healthcare staffing agency AHS Staffing for an undisclosed amount with the goal of forming a nationwide staffing firm.
The majority stake was purchased from five individuals: three next-level managers, President Jerick Henley and CEO Mark Smith. All five will remain on staff.
In addition, AHS Staffing will maintain its name.
"We are excited to partner with BelHealth, an experienced healthcare private equity firm," Smith told Staffing Industry Analysts. "We have built a strong platform that is well positioned to capture the significant opportunities in the healthcare staffing market. BelHealth has an extensive healthcare network and we look forward to working together to build AHS into a diversified, national staffing business."
The deal closed Oct. 14.
BelHealth operates two divisions: one for travel nurses and one for pharmacy staff. It has assets totaling $500 million.
BelHealth invests strictly in the healthcare sector. This is its first staffing agency acquisition.
The company's goal is to diversify in terms of geography and services provided.
Meanwhile, AHS Staffing announced it has a new executive chairman, Steven Francis.
Francis is the co-founder and former CEO and chairman of AMN Healthcare Services. He also was chairman of Medical Solutions, which places traveling nurses.
American Mobile Nurses was founded in 1985. It merged with American Mobile Therapists in 1994. That year the company's name was officially changed to AMN Healthcare Services. It is the largest healthcare staffing agency in the U.S.
Revenue has been increasing in recent years. In 2013, revenue totaled $1 billion. By 2015, it had grown 44.6% to $1.5 billion.
Profit increased during the same time frame from $33 million to $82 million. Assets also grew from $604.3 million to $880.4 million.
ReportLinker Review – Global Employment Services Market (source: MarketLine)
- The employment services market is comprised of two services: temporary staffing and search and placement.
- In 2014, the global employment services market had revenue totaling $434 billion Between 2010 and 2014, this represented a CAGR of 6%.
- Between 2010 and 2014, market volume increased at a CAGR of 5.6%. In 2014, it reached 19.6 million full-time equivalent employees.
- The market's performance is forecasted to slow. For the five-year period 2014-2019, a CAGR of 4.1% is anticipated. By 2020 the market is expected to be valued of $530.2 billion.
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