Recruitment Process Outsourcing (RPO): Good Medicine for Healthcare Recruiting

31 Mar 2015

Executive Summary

The global healthcare industry is undergoing a rapid and evolutionary transformation. On one hand, governments across the globe are attempting to bring more of their citizens within the fold of formal healthcare, on the other hand, increasing prosperity is making healthcare more affordable along with, simultaneously, introducing and increasing lifestyle diseases. The Affordable Care Act (ACA) in the United States has led to a rapid expansion of coverage of the population under healthcare. Healthcare spending in the United States now represents 17% of Gross Domestic Product (GDP) and is expanding at twice the national economic growth rate. Ageing population, especially in many developed economies, is increasing the demand for healthcare. The demand for healthcare is also increasing in emerging economies, as the rising incomes enable the citizens to spend more on better healthcare. The net result is that an increasing number of people are entering the formal healthcare system and this trend will continue, if not grow rapidly, in the years to come.

The rapid rise in the demand for healthcare is outpacing the growth on the supply side, leading to impending shortages. Healthcare providers need to be well prepared to meet this challenge as well as take advantage of the swelling wave of demand. As the global quest for healthcare increases, talent will become a key consideration for healthcare providers. A gap in the demand and supply in the healthcare talent space is inevitable and the ones who navigate this maze successfully will emerge victorious. Healthcare added about a million jobs in the United States in the four years since the ACA was signed into law in March 2010 – more than a tenth of total jobs added. Most of these jobs were high-skilled in nature, putting a significant strain on the talent supply chain as demand outpaces growth.

This research paper describes in detail the changes that are affecting the healthcare industry, the challenges and opportunities that providers face, and how the emerging, but proven, Recruitment Process Outsourcing (RPO) model can act as a problem solver and strategic differentiator in this arena.

 

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