Last Updated June 9, 2025
Fixing staffing shortages in healthcare will be easier said than done. The United States is facing a significant healthcare workforce shortage, affecting every position, from nurses to physicians to lab technicians. In fact, globally, there will be a shortage of 10.4 million healthcare workers by 2030.
From overwhelmed nurses and doctors to gaps in mental health support and rural coverage, this shortage affects every corner of the healthcare system.
But healthcare providers aren’t waiting for this situation to resolve on its own. Both hospitals and staffing agencies are adapting quickly to meet the growing demand for high-quality healthcare. New technologies, such as artificial intelligence (AI) and automation, hold a lot of promise, as well as innovative recruitment strategies tailored to the new realities of the job market.
Whether you oversee internal hiring at a hospital or are considering starting a medical staffing agency to bridge this gap, understanding the causes and potential solutions of this staffing shortage will set you up for success and can help make a real difference.
Overview of the Healthcare Workforce Shortage
The healthcare workforce shortage has escalated into a critical issue, affecting patient care and straining healthcare systems nationwide. The U.S. is projected to face a shortage of 3.2 million healthcare workers in just a year, which will have catastrophic consequences for patients seeking care.
Why is this happening? The healthcare workforce shortage is a multifaceted issue with many causes, including:
- Increasing demand for care: As the Baby Boomer generation ages, there’s an increased demand for healthcare services, particularly in geriatric care.
- Burnout: High levels of burnout among nurses and other healthcare providers have led to increased turnover rates, exacerbating staffing challenges.
- Educational bottlenecks: Limited capacity in nursing schools and a shortage of nurse educators hinder training for new healthcare professionals.
Hospitals are trying to resolve these issues and boost their staffing levels, but that’s easier said than done. Meanwhile, staffing shortages cost U.S. hospitals $24 billion, which is exacerbated by a staggering 36.9% increase in post-pandemic labor expenses.
However, the impacts of healthcare staffing shortages go far beyond hospitals: patients face delays, quality of care suffers, and communities experience gaps in essential services. With nearly one-third of all nurses considering leaving direct patient care in the next year, it’s clear that agencies and hospitals need to make changes to retain healthcare workers.
How Staffing Agencies Are Adapting
In response to the escalating healthcare workforce shortage, staffing agencies are implementing innovative strategies to bridge the gap between healthcare facilities and qualified professionals. Here are just a few ways healthcare staffing agencies are making changes to attract top talent:
- Promoting flexible staffing models: To address fluctuating demands, staffing agencies are offering per diem and locum tenens positions, which provide healthcare facilities with the flexibility to efficiently fill short-term vacancies. This approach not only alleviates the burden on existing staff but also offers healthcare professionals more control over their schedules. It’s no wonder that the locum tenens market is projected to reach $9.4 billion by the end of the year.
- Leveraging technology: By 2024, 46% of healthcare staffing firms prioritized digital transformation. Integrating AI and automation tools streamlines and personalizes the recruitment process, improving an agency’s odds of a successful placement. By utilizing predictive analytics, staffing agencies can anticipate staffing needs and match candidates to positions more effectively, reducing time-to-hire and improving placement success rates.
- Expanding talent pools: As agencies navigate the most common challenges in the staffing industry, they must rethink their approach to talent acquisition. For example, staffing agencies are increasingly recruiting internationally to mitigate the domestic shortage of healthcare professionals.
- Upskilling: To enhance the capabilities of the existing workforce, staffing agencies are also investing in upskilling and training programs. These initiatives enable healthcare professionals to acquire new certifications and competencies. While it may not yield immediate benefits, upskilling helps build a staffing agency’s talent pipeline, ensuring a steady flow of qualified talent over time.
How Hospitals and Healthcare Systems Are Adapting
A report revealed 84% of hospital executives say it’s challenging to recruit full-time or contract physicians. In response to the escalating healthcare workforce shortage, hospitals and healthcare systems are implementing innovative strategies to maintain high-quality patient care and support their staff. This includes making changes such as:
- Expanding recruitment efforts: While internal hiring certainly has its place, an increasing number of hospitals and clinics are relying on staffing agencies to fill the gaps. In fact, 69% of hospital executives report that they increased their use of staffing agencies over the last year. More hospitals are partnering with nursing schools to recruit new graduates. They’re also offering sign-on bonuses and housing assistance to attract qualified candidates, especially in competitive areas.
- Investing in technology: Hospitals are integrating more advanced technologies into their workflows to reduce errors and alleviate the burden on healthcare workers. Up to 84% of executives report adding technology, such as AI, to their workflows. While it’s essential to understand how AI will impact staffing, it has the potential to alleviate healthcare worker burnout if used responsibly.
- Focusing on retention and support: Staff well-being is a top concern for healthcare systems and hospitals. More organizations are investing in competitive compensation and benefits, flexible schedules, and professional development. Studies show that 83% of hospitals have restructured their operating models, such as adding more remote-first care options, to attract talented workers.
How to Fix the Healthcare Workforce Shortage
Both healthcare staffing agencies and hospitals are working hard to address workforce shortages. While it will take some time for the industry to rebound, several solutions have the potential to stabilize the industry and Americans’ quality of care. Here are some solutions to help mitigate the workforce shortage:
Invest in Nursing Education and Faculty
Expanding access to nursing schools and increasing the number of nurse educators is essential. Many qualified applicants are turned away each year due to limited capacity, so strategic funding and academic partnerships can grow the pipeline of future nurses. It’s also helpful for both staffing agencies and hospitals to understand nursing agency contracts so they can accelerate nurse deployment where the help is most needed.
Embrace Technology
Both staffing technologies and hospital workflow automation tools have the power to improve staffing levels. Staffing technologies ensure better worker-hospital matches through effective talent pool management, while hospital automation reduces burnout and allows providers to focus on patient care rather than administrative tasks.
Worker Float Pools
Innovative approaches to staffing can help temporarily bridge the gap in care. For example, health systems with multiple locations can create shared “float pools” of workers who can be deployed where demand is highest. This model reduces overstaffing in some departments and understaffing in others, while maximizing internal resources.
Return to Practice Pathways
Another innovative approach involves “return to practice” pathways for professionals who have left the industry but wish to re-enter. Many hospitals and staffing agencies are creating these pathways for retired and inactive clinicians.
Many experienced healthcare professionals leave the workforce due to retirement or burnout, but some may be willing to return part-time or in mentorship roles. Programs that simplify reentry and offer flexible schedules can help tap this valuable resource of work-ready providers.
Monitor Workforce Performance
Hospitals and staffing agencies should adopt robust workforce analytics tools to forecast shortages months or even years in advance. This data can inform everything from recruitment campaigns to upskilling programs, ensuring efforts align with real demand.
Focus On Development and Upskilling
Career development and upskilling are crucial to developing talent early. Hospitals can partner with high schools and community colleges to create job shadowing and internship programs that expose students to healthcare careers early on, especially in high-demand roles such as nursing, mental health, and diagnostics. This builds interest and commitment before students even enter formal training.
Some health systems also partner with ed-tech platforms or universities to offer micro-credentialing programs for targeted skill sets (e.g., wound care, triage, case management). This approach allows healthcare workers to gain specialization and mobility without committing to lengthy degree programs.
Staffing agencies are also doing their part to boost candidates’ skills. Staffing agencies can develop fast-track training or apprenticeship programs for roles such as medical assistants, certified nursing assistants (CNAs), and medical billing specialists. Agencies can typically fill these positions more quickly than traditional clinical roles, helping to ease the administrative burden on clinical staff.
Advocate for Change
Some government policies make it challenging to recruit and retain quality healthcare workers. For example, state-specific licensing requirements can delay the onboarding of qualified nurses and doctors.
Still, hospitals and agencies have influence when they speak with a unified voice. Advocacy takes time, energy, and funding, but this is one of the most effective ways to strengthen the healthcare system. Join coalitions to advocate for reforms that enhance the workforce supply, such as increased funding for nursing schools, visa reform for international clinicians, and expanded telehealth reimbursement.
In-Summary: How to Fix Staffing Shortages in Healthcare
The United States is already experiencing a healthcare staffing crisis. Left unaddressed, it has the potential to hurt both the health of our nation and the viability of the healthcare industry. The growing healthcare workforce shortage demands a proactive, multipronged response. From hospitals adopting AI and virtual nursing models to staffing agencies expanding international recruitment and upskilling programs, solutions are already in motion.
By investing in nursing education, strengthening retention efforts, and embracing flexible staffing and telehealth technologies, healthcare systems can relieve pressure on existing staff while improving patient outcomes. These strategies not only help fix staffing shortages in healthcare, but also lay the foundation for a more resilient, efficient, and adaptive healthcare workforce in the years ahead.
Michael McCareins is the Content Marketing Associate at altLINE, where he is dedicated to creating and managing optimal content for readers. Following a brief career in media relations, Michael has discovered a passion for content marketing through developing unique, informative content to help audiences better understand ideas and topics such as invoice factoring and A/R financing.
