--- title: "The Healthcare Staffing Forecast: Leveraging HWL Services in a Contracting Market" description: Explore the 2025 healthcare staffing forecast and discover how HWL’s workforce solutions help providers reduce costs, improve fill rates, and stay competitive in a tightening labor market. image: https://blog.hwlworks.com/hubfs/AdobeStock_863519736.jpeg --- [VMS Login](https://vms.hwlmsp.com/) [![HWL_2C_300DPI-Aug-29-2023-12-27-59-4566-PM](https://blog.hwlworks.com/hs-fs/hubfs/HWL_2C_300DPI-Aug-29-2023-12-27-59-4566-PM.jpg?width=201&height=75&name=HWL_2C_300DPI-Aug-29-2023-12-27-59-4566-PM.jpg "HWL_2C_300DPI-Aug-29-2023-12-27-59-4566-PM")](https://www.hwlmsp.com/) [Industry News](https://blog.hwlworks.com/the-healthcare-staffing-forecast-leveraging-hwl-services-in-a-contracting-market#) ### x**HEALTHCARE INDUSTRY NEWS** Get industry news, client announcements, product release info, and HWL Insights directly in your inbox! # The Healthcare Staffing Forecast: Leveraging HWL Services in a Contracting Market [Healthcare Workforce Solutions](https://blog.hwlworks.com/tag/healthcare-workforce-solutions), [Healthcare Staffing](https://blog.hwlworks.com/tag/healthcare-staffing), [Staffing Optimization](https://blog.hwlworks.com/tag/staffing-optimization) ![](https://blog.hwlworks.com/hubfs/AdobeStock_863519736.jpeg) Healthcare organizations face unprecedented workforce challenges as the staffing market continues to contract and evolve. This article examines the latest industry data and reveals how HWL's comprehensive suite of solutions can help healthcare providers navigate these challenges while optimizing their workforce strategy and controlling costs. ** ** **Market Overview: The Shifting Healthcare Staffing Landscape** According to the latest US Staffing Industry Forecast from Staffing Industry Analysts (March 2025), the healthcare staffing market continues to undergo significant transformation. After the extraordinary growth and subsequent contraction following the pandemic, healthcare organizations are now facing new challenges that require strategic workforce solutions. **Key Market Trends:** - **Travel Nurse **segment declined 37% in 2024, continuing its journey back to pre-pandemic levels, with projections showing a further 12% decline in 2025 before modest 3% growth in 2026 - **Per Diem Nursing **decreased by 17% in 2024, with stable bill rates but continued wage pressures impacting staffing firm margins - **Locum Tenens **emerged as the bright spot, growing 15% in 2024, driven by both bill rates and volume, with continued growth projected at 6% in 2025 and 5% in 2026 - **Allied Healthcare staffing **contracted by 15% in 2024, with mixed performance across specialties, and is projected to decline 7% in 2025 before showing modest 1% growth in 2026 ** ** **Market Challenges Identified in the SIA Report** Healthcare organizations across the country are grappling with several key challenges: - **Cost Containment Pressure: **Many healthcare clients have intentionally set goals to reduce contingent spend, sometimes pushing bill rates "below market" levels - **Unfillable Orders: **Aggressive rate reductions have resulted in positions that cannot be filled at offered compensation levels - **Margin Compression: **Travel nurse firms face extreme compression in gross margins due to intensified competition in a smaller market - **Candidate Scarcity: **Despite high hospital census, finding qualified candidates remains difficult - **Regulatory Hurdles: **Stricter regulations in states like California and New York add complexity to staffing operations **HWL Solutions for Today's Market** 1. [** Managed Services On-Demand**](https://hwlworks.com/managed-service-programs/) - - Dedicated account management and clinical screening - Real-time business intelligence dashboards 1. [** Physician & Provider Solutions**](https://hwlworks.com/physician-provider-solutions/) - - Analytics-driven rate optimization - Custom workflows and credentialing technology 1. [** Private Label Internal Agency**](https://hwlworks.com/private-label-internal-agency/) - - Cost-effective internal agency model - Market-informed compensation structures 1. ** Strategic Workforce Solutions** - - [Local InSourced Flex Teams](https://hwlworks.com/local-insourced-flex-team/) to reduce contingent labor costs - [SourceDirect](https://hwlworks.com/sourcedirect/) for permanent staffing needs 1. ** Customized Implementation** - - Phased rollouts aligned with organizational priorities - Hybrid workforce models combining multiple approaches **Success Story: Custom Program Implementation** **The Challenge** [Grady Health](https://hwlworks.com/grady-health-2/) and hospitals nationwide faced unsustainable contingent labor costs amid high nurse demand across all specialties. The hospital lacked visibility into worker compensation versus bill rates and had no control over pricing, leaving them at the mercy of agency feedback and unpredictable market forces. **The Solution** Amid pandemic-strained finances and high contingent labor costs, Grady Health System sought relief from worker shortages. Based on HWL's successful vaccination program, Grady chose their no-cost private label solution for its proven reliability. **The Results** This integrated approach delivered measurable impact: - Average cost savings of 21% on Grady's contingent labor through visibility into rates. - Market penetration into the healthcare workplace. - Quality staff and an average fill rate of 78% among contingent workers This success story demonstrates how HWL's customizable programs can be precisely tailored to address the specific challenges revealed in the latest SIA forecast data. **Why Choose HWL?** - **Technology: **Most customizable platform with seamless integration - **Expertise: **Healthcare-specific focus with former agency executives - **Results: **Documented cost savings and improved fill rates - **Approach: **Solutions tailored to your specific challenges **Ready to Transform Your Workforce Strategy?** Schedule a consultation with our experts at info@hwlworks.com to learn how HWL can help your organization thrive in today's challenging staffing environment.   [Source: https://www.staffingindustry.com/research/research-reports/americas/us-staffing-industry-forecast-march-2025-update](https://www.staffingindustry.com/research/research-reports/americas/us-staffing-industry-forecast-march-2025-update) May 02, 2025/By [Tamara Miller](https://blog.hwlworks.com/author/tamara-miller) TAGS: [Healthcare Workforce Solutions](https://blog.hwlworks.com/tag/healthcare-workforce-solutions), [Healthcare Staffing](https://blog.hwlworks.com/tag/healthcare-staffing), [Staffing Optimization](https://blog.hwlworks.com/tag/staffing-optimization) ##### Share this entry - Share on Facebook - Share on Twitter - Share on Pinterest - Share on Linkedin - Share on Tumblr ### Author: [Tamara Miller](https://blog.hwlworks.com/author/tamara-miller) With over 25 years of experience as a registered nurse, Tamara's journey encompasses a rich tapestry of healthcare expertise. Over this time, she has honed her skills in healthcare workforce development, staffing solutions, EHR solutions, career transition strategies, executive recruiting, career coaching, and nurse retention. This journey includes 11 years of hands-on experience in various healthcare settings, granting her a profound understanding of the industry's intricacies. In addition to her healthcare career, Tamara's entrepreneurial spirit shines brightly. As the founder of Aramat Consulting in Indianapolis, she provided invaluable guidance in recruitment and retention strategies. This entrepreneurial experience adds a dynamic dimension to her multifaceted healthcare journey. Find me on: [LinkedIn](https://www.linkedin.com/in/tamara-miller-29931aa/) ##### You might also like [Expanding Healthcare Recruitment Capacity Without Expanding Internal Headcount](https://blog.hwlworks.com/expanding-healthcare-recruitment-capacity-without-expanding-internal-headcount) [Vendor-Neutral vs. Agency-Run MSPs: What Actually Differentiates the Models](https://blog.hwlworks.com/vendor-neutral-vs.-agency-run-msps-what-actually-differentiates-the-models) [Spotlight: Transforming Contingent Workforce Management Through Onsite Partnership](https://blog.hwlworks.com/spotlight-transforming-contingent-workforce-management-through-onsite-partnership-1) [Why RFPs Don’t Work and What to Do Instead](https://blog.hwlworks.com/why-rfps-dont-work-and-what-to-do-instead) [The Market Hasn’t Settled. It’s Signaling.](https://blog.hwlworks.com/the-market-hasnt-settled.-its-signaling) [Vendor Neutrality in Locums: A Strategic Lever for Physician Recruitment Leaders](https://blog.hwlworks.com/vendor-neutrality-locums-physician-recruitment-strategy) [Vendor Neutrality: The Workforce Advantage CNOs Can’t Ignore](https://blog.hwlworks.com/vendor-neutrality-the-workforce-advantage-cnos-cant-ignore) [From Overwhelmed to Strategic: Giving Clinical Leaders Their Time Back](https://blog.hwlworks.com/from-overwhelmed-to-strategic-giving-clinical-leaders-their-time-back) Please feel free to keep the discussion going in the comments section below. ### Latest News - [What If We've Been Measuring the Wrong Workforce Metrics](https://blog.hwlworks.com/what-if-weve-been-measuring-the-wrong-workforce-metrics) July 09, 2026 - [Built by Educators. Designed for Education.](https://blog.hwlworks.com/built-by-educators.-designed-for-education) July 06, 2026 - [Expanding Healthcare Recruitment Capacity Without Expanding Internal Headcount](https://blog.hwlworks.com/expanding-healthcare-recruitment-capacity-without-expanding-internal-headcount) May 14, 2026 [**Follow** on Twitter ](http://twitter.com/hwlmsp/) [**Follow** in Linkedin ](https://www.linkedin.com/company/healthcare-workforce-logistics/) [**Subscribe** to RSS Feed ](https://blog.hwlworks.com/blog/rss.xml) > [HWLMSP](https://www.facebook.com/hwlmsp/) ### More HWL Insights in your Inbox! 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