16 Jul After the Boom: Why Locum Tenens Growth Is Slowing to 5%—But Only for Now
The healthcare employment field has undergone dramatic changes in recent years, particularly in the wake of the COVID-19 pandemic. The locum tenens market, once experiencing a meteoric rise, is now poised for a new phase of growth—one that’s more measured and sustainable. After a remarkable 17% growth in 2023, before easing to around 5% this year. This trend reflects the industry’s transition from the rapid expansions seen during the pandemic to a healthier, steadier trajectory of sustainable growth.
Market Trajectory
Understanding the current market dynamics requires a look back at how we arrived here. The COVID-19 pandemic prompted a surge in demand for locum tenens as healthcare systems scrambled to fill staffing shortages. This year, however, appears to be a shift towards stabilization. While the impressive gains of the past might slow down, a projected growth rate of 5% through the end of 2025 still indicates a significant demand for flexible staffing solutions in an evolving healthcare system. The numbers remind those who deliver services and manage staff in the healthcare field that locum tenens are here to stay.
Socio-Demographic Forces
The aging U.S. population is also playing a critical role in shaping locum tenens demands. With more older adults facing chronic conditions such as diabetes, cancer, and heart disease, medical systems are increasingly relying on locum tenens to bridge staffing gaps. This demographic shift requires a tremendous increase in specialized care, making locum professionals crucial to filling these needs. As our population ages, flexible staffing solutions will not just be the norm but are likely to become a foundational part of healthcare delivery.
Changing Provider Mix
Interestingly, the staffing marketplace is evolving, with Advanced Practice Providers (APPs) taking on roles traditionally filled by physicians. Nurse practitioners and physician assistants are stepping in where they are most needed, boosting locum tenens growth significantly—by 24% in 2024 compared to the previous year. This shift demonstrates that APPs are now part of a broader strategy to enhance healthcare delivery, further influencing demand for locum tenens professionals.
Burnout & Workforce Strategy
A continuing consideration in healthcare is the role of locum tenens as a strategic buffer against physician burnout. The pressures faced by many healthcare providers, particularly those under 45, are mounting—excessive administrative burdens, high-stress environments, and challenges maintaining an effective work-life balance. By integrating locum professionals into their staffing models, healthcare systems can offset these pressures, ensuring a healthier workforce and continuity of care.
Hospitals, healthcare systems, insurers, and staffing firms are making coordinated efforts to build and maintain morale and improve patient care. This means focusing on critical interventions—reducing administrative loads, providing peer support, offering wellness and therapy programs and training.
still indicates a thriving demand for flexible staffing solutions in an evolving healthcare system.
Sources: staffingindustry.com and locumpedia.com
The Future of Locum Tenens
While the growth of locum tenens may be slowing, it is by no means diminishing. As the healthcare industry shifts to a model that prioritizes strategic staffing, the flexibility and vital role of locum professionals will ensure they remain an important part of meeting the challenges that tomorrow’s healthcare demands bring.
How does the future for your healthcare organization look, regarding its staffing needs and the demands of the changing patient populations? Annashae is here to serve as your partner whether you’re planning for future needs or anxiously seeking to cover open roles or meet urgent needs. Contact us today for all your healthcare staffing needs.
