Investing in Healthcare Recruiting - Risks and Opportunities

Hospitals and healthcare are definitely on the reliableimmigration offset (or even new young immigrants
growth pace. Current industry trend is really reverse toinflow reversed the aging process) was not as active
what you would expect, being new to this sector - thisas in United States. Senior population requires more
is shortage of nurses and medical professionals,medicine attention and potentially will increase the
meaning that it is rather challenge to find certifiedworkload for healthcare staffing organizations, who
applicants, and not really to get new contracts fromsupply hospitals, nursing homes and retirement
healthcare organizations. This trends requires thecommunities with nurses and medical doctors.
investors to look at healthcare staffing agency from3. Baby Boomers "contribution". It is believed to be a
the perspective of its popularity among nursesfactor and it should begin its population aging
community - getting nurses opinions on whichcontribution, in the sense that baby boomers will
company is "better" - in the senses of being moreapproach retirement age in five-ten years from now.
friendly, offering better conditions, including fasterMaybe it is over estimated, however as new
paychecks issuance. As medical staffing companiespopulation is growing due to current high rate of
actually sells services in the form of recruiting fees,immigration into US.
plus W2 services to their medical temps - you should4. Healthcare placement competition is rising. Still, we
feel the nature of the risks and the opportunities: theysee large number of privately owned recruiting firms,
are at the management experience, passion andwho are strong on the local and sub-regional markets,
competence side, not in real material assets, such asso the best way to grow is merges and acquisitions, it
plants, production tools or even buildings. Let's try tois not a good time for new operations launching in the
see the pro and contra arguments:regions. Obviously it is too optimistic to predict that all
1. Economy Cycles: Booms and Recessions -of these healthcare staffing firms will be absorbed by
healthcare is always in demand, so it should bepublic healthcare placement providers, however the
considered stable and not really exposed to economytrends are out there.
cycling. This statement might be considered as a trend,5. Sun belt states syndrome. Retiring population has a
however some companies will suffer from badtrend to sell their mortgage paid single family houses in
economy, but in our opinion mostly due to theNew England, New York, Illinois, California and other
recession "atmosphere".mid-west or northern states and move down to
2. US population "aging" - this is similar to what wasFlorida, Texas, Georgia, Arizona, and others sun belts
long times seen in Europe and Japan, wherestates, where they surge new medical nurse inflow.