Supply Factor: The Allied Health Professional Shortage
Hospitals and healthcare facilities across America are experiencing a critical shortage in allied health professionals, including occupational and physical therapists, clinical laboratory technologists, imaging technicians, pharmacy technicians and radiology technologists.
Hospitals reported vacancy rates ranging from 7 to 7.5 percent among imaging technicians, pharmacists and many other allied healthcare positions. The current shortage is expected to worsen over the next 20 years.
The Bureau of Labor Statistics projects that by 2016, the United States will need a total of 220,000 physical therapists – 27% more than are currently employed. According to the American Health Association workforce survey results, shortages are contributing to Emergency Department diversions, a reduced number of staffed beds and increased patient wait times.
Allied staffing is perhaps the most attractive field for emerging companies in the healthcare staffing industry. It is one of the least concentrated of the four sectors of healthcare staffing with large firms generating just one-sixth of total revenue. Segmentation, with small companies comprising the largest part of allied health staffing, opens opportunities to newcomers in the field. It also includes many specialties with low penetration rates (the percentage of temporary staffing versus total of positions in the company), indicating that there will be significant growth.
Based on private research from The Staffing Industry, Inc., and data from the Bureau of Labor Statistics, the allied/other temporary staffing market is estimated to be a $3.5 billion industry and it is expected to grow at an 11% annual rate. An estimated daily average of 70,000 temporary workers are employed in this skill set, making up almost half of total temporary healthcare staffing.
The Center for Health Professions lists the following as the most wanted allied health professionals:
There are several factors influencing shortages in the allied health professionals’ field, and the overall aging workforce of allied health professionals is just one of them. The median age of physical therapists is 45. Young allied health professionals cannot join the labor force with the needed speed because of the minimum requirement of a BS degree and higher certification standards.
In the meantime, the computerization of hospitals drives the increasing demand for computer-savvy allied health specialists. This requirement is especially critical for radiology technicians, sonographers and many other diagnostic specialties.
Hospitals reported vacancy rates ranging from 7 to 7.5 percent among imaging technicians, pharmacists and many other allied healthcare positions. The current shortage is expected to worsen over the next 20 years.
The Bureau of Labor Statistics projects that by 2016, the United States will need a total of 220,000 physical therapists – 27% more than are currently employed. According to the American Health Association workforce survey results, shortages are contributing to Emergency Department diversions, a reduced number of staffed beds and increased patient wait times.
Allied staffing is perhaps the most attractive field for emerging companies in the healthcare staffing industry. It is one of the least concentrated of the four sectors of healthcare staffing with large firms generating just one-sixth of total revenue. Segmentation, with small companies comprising the largest part of allied health staffing, opens opportunities to newcomers in the field. It also includes many specialties with low penetration rates (the percentage of temporary staffing versus total of positions in the company), indicating that there will be significant growth.
Based on private research from The Staffing Industry, Inc., and data from the Bureau of Labor Statistics, the allied/other temporary staffing market is estimated to be a $3.5 billion industry and it is expected to grow at an 11% annual rate. An estimated daily average of 70,000 temporary workers are employed in this skill set, making up almost half of total temporary healthcare staffing.
The Center for Health Professions lists the following as the most wanted allied health professionals:
- Physical Therapists
- Occupational Therapists
- Speech & Language Therapists
- Pharmacists
- Radiologic Technologists
- Respiratory Therapists
- Laboratory Professionals
- Health Information Managers
There are several factors influencing shortages in the allied health professionals’ field, and the overall aging workforce of allied health professionals is just one of them. The median age of physical therapists is 45. Young allied health professionals cannot join the labor force with the needed speed because of the minimum requirement of a BS degree and higher certification standards.
In the meantime, the computerization of hospitals drives the increasing demand for computer-savvy allied health specialists. This requirement is especially critical for radiology technicians, sonographers and many other diagnostic specialties.