Explore the health care staffing industry

	Why Healthcare? Why Now?
	"If you've ever wondered if there was any such thing as a "recession-proof" business, you will want to read on. In this issue, we will explore the healthcare staffing industry and see how it stacks up against other sectors in this struggling economy. Our goal is to help people understand the industry and make an informed decision about a start-up or expansion into healthcare staffing."
	People are nervous. There's no doubt about it. Corporate presidents and employees alike are afraid to say it. It's the "R" word. We may not say it aloud, but if we're not in a recession, then why is everyone so fearful? It seems to be happening everywhere and no one seems immune. The Fed Chairman, Ben Bernanke, described the cause for the down-turn as "the mortgage liquidity crisis". Is it possible that the "mortgage liquidity crisis" is rippling through the entire economy? We've all seen the latest BLS stats that show that over the past 12 months, the employment services has lost 158,000 jobs; three-fourths of which were in temporary help. Then, as if to confirm our worst fears, even Warren Buffet has agreed that the signs are all there, "I would say, by any commonsense definition, we are in a recession." But is it really that bad? Are we really in a recession or just taking a very dim view of the recent seemingly negative signs that our economy is slowing? The generally accepted definition of a recession describes a period of two or more consecutive quarters of decline in a country's gross domestic product. While some sectors are definitely experiencing monumental losses, it may or may not come as a surprise that the trend is not all-encompassing. In fact, some sectors are actually experiencing record-breaking growth. Revenue for one of the Nation's largest temporary healthcare staffing firms, AMN, reported that the full year 2007 was an industry record $1.16 billion, an increase of 7.6% from the $1.08 billion reported for 2006. A recent article on Forbes.com describes the meteoric rise of another young and rapidly growing healthcare staffing firm, "Revenue from contract appointments increased 211% from $1,183,839 (2006) to $3,676,432 in 2007. This increase is attributed to the continued expansion of the attractive options offered to temporary hires (typically, 13-week contracts) by healthcare facilities looking to cover during periods of short staffing due to high seasonal activity, vacations, leaves of absence, etc." And yet despite the market's best efforts, hospitals, clinics, and nursing homes across the nation are STILL experiencing desperate shortages of clinical staff! While other employment sectors are declining, healthcare is continuing to boom. According to a recent BLS report, the healthcare sector has added over 363,000 jobs last year while other sectors lost 158,000 during the same 12 month period. The report goes on to say that, "The "graying of America" will drive hospice growth and jobs. By 2030, 20 percent of Americans will be over 65. And by 2050, the number of the "oldest-old," those over age 85, will increase to 19 million." In short, the BLS estimates that between 2004 and 2014, about 19 percent of all new wage and salary jobs - about 3.6 million - will be in healthcare - more than in any other industry. The graying of America is happening now and experts estimate that it will reach its zenith in 2020, and until then, will be placing a huge demand on the healthcare system. A University of Delaware study reported that "Increased life expectancy is creating record numbers of people aged 65 and older. In less than a century, we have added 25 years to our life span. Those aged 65 and older will represent 13% of the population in 2000, and about 21% of the population in 2030. The group expected to grow most rapidly in the next 30 years is the one aged 85 years and older. Advances in medicine allow people today to die in 'small increments' of debility." Put quite simply, America's need for healthcare services will be steadily increasing along with the chronic, on-going nature of many illnesses that come as a matter of course as our population continues to age in ever-increasing numbers. The demand is clear and many companies are seeing the opportunity, but the key to success is timeliness. Those that will become major players in the industry must be established now, while the demand and potential for growth are still skyrocketing. Although healthcare staffing is a highly regulated field, there are distinct advantages for a company who is already established in the staffing industry to expanding into healthcare staffing and many firms are doing just that, in record numbers. Even Business Week acknowledged the tremendous opportunity for growth back in 2006 when it carried the cover story, What's Really Propping up the Economy? "Almost invisibly, health care has become the main American job program for the 21st century, replacing, at least for the moment, all the other industries that are vanishing from the landscape. With more than $2 trillion in spending -- half public, half private -- health care is propping up local job markets in the Northeast, Midwest, and South, the regions hit hardest by globalization and the collapse of manufacturing" Yes, people are nervous, but many pro-active, entrepreneurs are looking at diversifying their range of services to include healthcare as a way to balance out the possibility of decreased profits. So ultimately, whether or not you believe we're in a recession may just depend on how you look at it. The good news is, that it's not all bad news-- at least not for those willing to look for positive ways to navigate around the dreaded "R" word.