Banker Insights: Healthcare Staffing

Healthcare staffing

Healthcare transactions

  • Historically, outsourced staffing services have been used to fill a temporary or small gap in a healthcare provider organization’s clinical needs. With the onset of the pandemic and associated provider burn-out, along with aging clinicians retiring, these healthcare delivery groups are seeing staffing agencies as a more sustained solution as clinical staffing shortages persist. 
  • In our conversations with providers and investors, healthcare staffing represents a strong and growing market, which is driving increased interest and valuations, and is leading to more consolidation within the highly fragmented sector. Further contributing to the activity, many owners are seeking an exit at this time as they see a ripe opportunity to monetize the asset they built or seek an investor to help them achieve the next level of success.
  • This is illustrated by the active M&A market within healthcare staffing. From 2021 through YTD 2023, nearly 100 transactions completed with strategics and private equity being equally active in seeking targets and completing transactions.
  • Additionally, with pricing (increased billing rates) and volume figures increasing for staffing agencies, it is providing exceptional market dynamics for owners to receive premium valuations, should they choose to pursue a strategic or financial partner.
  • With staffing shortages appearing to be the new normal for all healthcare delivery organizations, we expect strategic and financial investor demand for healthcare staffing organizations to remain high through 2023 and beyond.

For more information or questions, please contact our Healthcare Services team:

Paul Kacik, Managing Director:

Brad Erhart, Director:

Daren Oddenino, Director: