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Business Opportunity

The current healthcare industry situation drives a market pressured by declining supply and a rising demand. Industry forecasts indicate that the $10.6 billion medical staffing industry will grow at a rate of 8 to 15% per year through 2016. As a recession-proof industry, medical staffing will continue to grow at more than 8% per year, independently of instability in other recruiting and staffing businesses. Medical Connections is perfectly positioned to take advantage of the current market situation and seize this real business opportunity.

Governmental and Private Sector Healthcare Spending

Health care spending in the United States has grown rapidly since the 1960s. At an average rate of 10 percent a year, U.S. health care spending weighed in at $2.2 trillion in 2007. By 2016, this figure is projected to increase to $4.1 trillion.

Spending on healthcare currently accounts for about 16.2% of the Gross Domestic Product (GDP). By 2015, the Center for Medicare and Medicaid Services (CMS) projects that healthcare will account for 22% of the GDP.

The drastic increase in private and governmental healthcare spending is projected to continue growing up to the year 2050. Both in private and governmental healthcare spending, pushing the record numbers are the following factors:

– The aging population creates need for more medical spending

– Increased health risks

– Increase in health insurance premiums

– Increased use of expensive diagnostic and treatment technology

– Increased costs of prescription drugs

– New legislation on prescription drugs is burdening the government with more costs

– Government policies: increased budget for new healthcare centers, increased budget for nursing training

– Growing number of people lacking private health insurance

The Increased Costs of Healthcare Drive More Flexible Staffing Solutions

Technological advancements in the healthcare industry increase life expectancy and the number of years each person needs healthcare. As healthcare expenditures in the United States have continued to increase, healthcare providers have experienced additional cost reduction pressures. The need to cut costs has caused many healthcare providers to apply more efficient workforce strategies, including the use of temporary employees to enhance flexibility and reduce costs by transforming a portion of their labor costs from fixed to variable.

International Supply Opportunity

Foreign-born professionals account for more than 15% of all persons employed in the healthcare industry, according to the latest available data. The following statistics show how the international supply opportunity can work in favor of alleviating the shortage for healthcare professionals.

According to research by the Immigration Policy Center:

– 1.4 million immigrants account for 14.5 percent of healthcare providers in the United States

– Foreign-born professionals account for 26.3 percent of all physicians; 22.3 percent of RNs, and 16.4 percent of health-care technologists and technicians

– Foreign-born professionals play a crucial role in filling severe shortages within the two largest healthcare occupations: physicians and nurses.

Opportunities for Permanent Nurse and Allied Recruiting

With many healthcare organizations seeking to expand permanent staff, hiring foreign healthcare workers is, of course, always a natural opportunity to explore, but a recent change in the law has made it more so. In particular, the HR 1268 Bill was approved, allowing 50,000 foreign nurses and physical therapists to enter the United States. Pursuing and placing foreign candidates requires long lead times and the ability to process complex legal work, but it also offers a chance for real partnerships with healthcare organizations in search of increased supply.

Outside of the United States (which is the number one country in the world in spending for healthcare), there are dozens of Universities and Colleges producing highly qualified medical specialists and scientists. By U.S. standards, those professionals are underpaid in their countries. This fact creates enormous opportunities for experienced recruiters prepared to tap the global pool of talent for the domestic market. It also represents a real possibility for high-margin profit, and creates healthy competition.