Per Diem Nurse Staffing Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Per Diem Nurse Staffing Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Per Diem Nurse Staffing Market is expected to witness a CAGR of 4.5% during the forecast period.

COVID-19 has impacted the per diem nurse staffing market due to the high demand for nursing staff and the high number of hospital admissions of COVID-19 and other emergency cases worldwide. However, hospitals & clinics faced shortages of nurses as many nurses resigned due to the high stress faced during COVID-19. For instance, According to a February 2022 article in the Elsevier Public Health Emergency Collection, there is a critical nurse staffing shortage in several hospitals across the United States. According to the report, there are severe nursing staffing shortages in US hospitals, particularly in the tri-state areas of New York at 1.49%, Connecticut at 2.63%, and New Jersey at 9.57%. The market is gradually recovering by recruiting per diem nurse staffing to meet the high operational needs and reduce the shortage of staff nurse-to-patient ratios worldwide.

In addition, rising demand for healthcare facilities and growing preference for per diem nursing due to flexible work atmosphere is actively affecting the growth of the studied market.

Over the recent few years, per diem nursing has started being considered exciting and challenging, especially by those nurses who like the challenge of adapting quickly to a new environment. According to the data published by Norwich University in 2021, around 194,500 registered nurses are needed each year in the United States over the next decade, along with tens of thousands of nursing practitioners. Such increasing demand for nurses is expected to drive the market's growth. As per the same source, per diem nursing has several advantages, such as flexibility, higher earnings, and working for different employers. Hence, if a nurse is new to an area and is not sure which hospital to work at, Per diem nursing lets them get to know a variety of places before committing to full-time employment.

Furthermore, travel nurses also maintain a home-based per diem or part-time job to care for a patient at home. According to a review article published in Elsevier Public Health Emergency Collection in April 2022, the demand for travel nurses has grown exponentially, increased by 35% in 2020, and was expected to increase by 40% more in 2021. The growing demand in the consecutive years is expected to propel the demand during the forecast period.

The strategic initiatives by key players, such as partnership, launches, and innovation in the services, is expected to propel the market growth. For instance, in April 2022, Cross Country Healthcare launched a study on the use and benefits of Vendor Management Systems to streamline hiring contingent and permanent staff. The study included responses from more than 150 healthcare organizations. Such studies are expected to highlight the benefits of technology and innovation in the nursing staffing market and create opportunities for more studies during the analysis period, thereby boosting market growth.

Thus, the growing preference for per diem nursing is expected to drive market growth over the forecast period. However, low job security is likely to impede the market growth.

Per Diem Nurse Staffing Market Trends

Hospital is Expected to Hold Significant Market Share in the End User Segment

Hospitals usually have a considerable workload and hence need a large number of skilled healthcare providers. Owing to cost constraints and a lack of adequately skilled professionals, hospitals often use per diem nurses to cover staffing needs, as those needs may vary from week to week.

For instance, if an area has undergone a flu epidemic, a hospital might have a larger patient load than what it normally faces, but since the epidemic would usually drop down in a few weeks, appointing per diem nurses lets the hospital cover the epidemic without having to hire staff permanently for only a temporary need. In addition, having a group of good and skilled per diem nurses allows a hospital to cut its costs down by appointing such nurses only when they are needed. Developed Countries already have many healthcare facilities and easy access to public health services.

Furthermore, the increasing number of government initiatives to strengthen the healthcare systems and improve healthcare access in rural areas have resulted in the initiation of various hospital projects. For instance, in October 2020, the Prime Minister of the United Kingdom announced funding to build 40 hospitals by 2030. Such initiatives give rise to new hospitals and are expected to increase the demand for Per Diem Nurse staffing, thereby contributing to the market's growth.

Additionally, according to NITI Aayog 2021 report, India needs to increase the number of trained health personnel across various categories to achieve a ratio of at least five nurses per 1,000 people by 2034. Initiatives under Ayushman Bharat will also encourage the education of nurses and other allied health professionals to provide skilled support services in secondary and tertiary care. The report highlighted that 2.4 million nurses are required to meet the growing demand for healthcare in India. Thus, the high demand for nurse staff is expected to propel the segment growth as hospitals treat a large number of patients, which requires a significant headcount of per diem nurse staff.

Therefore, owing to the aforesaid factors, such as rising healthcare initiatives by government bodies across the globe to increase the number of per diem nurses or full-time nurses in healthcare organizations expected to boost the segment's growth during the forecast period.

North America Hold a Significant Share in The Per Diem Nurse Staffing Market Over The Forecast Period

Per diem nursing has been observing a significant rise in demand and preference in North America owing to several factors, such as the high number of hospitals, better healthcare infrastructure, and the rising preference for per diem nursing due to the flexible work atmosphere.

The rising government support for Per Diem Nurse Staffing in the United States is also expected to drive market growth during the forecast period. For instance, in June 2022, the American Hospital Association expressed support for a new bill that would direct the government accountability office to increase surveillance of travel nursing agencies and their impact on workforce shortages. Per diem nurses can make their schedules to meet the needs of their personal lives. The benefits and government support are expected to create more opportunities for per diem nurses, which will boost the market growth during the forecast period.

Additionally, according to the Ministry of Long-Term Care, Ontario update, in April 2021, the current base Level-of-Care (LOC) per diem funding was USD 103.88 for Nursing and personal care. Per Diem nurses are never required to work a weekend or a holiday if they choose. Their pay rate is also usually much higher than what regular staff nurses take home. These factors are expected to boost the demand for the per diem nursing profession in the region and ultimately propel market growth.

Therefore, owing to the above-mentioned factors, such as overall work culture benefits and high pay of per diem nurse staffing, and rising funding for per diem nurse training, the growth of the studied market is anticipated in the North America Region.

Per Diem Nurse Staffing Industry Overview

The Per Diem Nurse Staffing market is moderately competitive and consists of a number of major players. Companies like Accountable Healthcare Staffing, AMN Healthcare, ATC Healthcare, Cross Country Healthcare, Dedicated Nursing Associates (DNA), Favorite Healthcare Staffing, HealthTrust Workforce Solutions (HCA), Interim HealthCare, Maxim Healthcare Services, Supplemental Health Care, among others, hold the substantial market share in the Per Diem Nurse Staffing Market.

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