Healthcare Staffing Industry Digest: October 9-October 16
Executive Summary
Health System Capital and the Executive Turnover Cycle: Before you dive into this week’s intelligence digest, here are the macro trends actively reshaping our industry today:
Health Systems Invest in Platforms: UPMC Enterprises’ strategic investment in VeloSource, with a board seat and a UPMC physician as Chief Medical Officer, shows a health system investing in the technology that manages contingent physician staffing.
Leadership Turnover Reaches Health Systems: Beth Israel Lahey Health and WellSpan each named a new CEO, and Joint Commission named a new COO, which gives staffing firms three new executive relationships to build by January.
Hiring Pace Eases Slightly: ADP’s NER Pulse shows private employers adding 24,750 jobs per week in the four weeks ending September 26, a small step down from 25,250 the week before.
Two States Hold 22.5% of Spend: SIA’s new US Geographic Opportunities Atlas shows California and New York accounted for 12.4% and 10.1% of 2025 US healthcare staffing spend respectively, which concentrates territory and acquisition decisions.
AI Employment Rules Keep Multiplying: California signed SB 951 and AB 1883 on September 30, and New Jersey’s S4075 cleared its Senate Labor Committee 5-0, which adds compliance layers for firms using AI in recruiting and workforce planning.
Dive into this week’s digest below to see exactly how the market’s biggest players are navigating these shifts.
Having trouble opening a link? Some enterprise email filters block Substack’s redirect links. Every issue, with direct links, is available on our website at: morgantaylorsearch.com/news-digest
M&A / Partnerships
UPMC Enterprises Makes Strategic Investment in VeloSource
UPMC Enterprises invested in VeloSource, an Interlock Equity portfolio company, and will hold a seat on its board. UPMC physician Richard Wadas, M.D., becomes VeloSource’s Chief Medical Officer while keeping his UPMC roles. The release does not disclose the amount. A health system now holds a board seat at a staffing technology vendor.
Read about the UPMC Enterprises investment
Financial Results
Kforce Sets October 26 Date for Third Quarter Results
Kforce will release third quarter results after the market closes on Monday, October 26, with a call at 5:00 p.m. ET. Its commentary on technology staffing demand is worth reading for firms placing healthcare IT leaders.
Read about the Kforce earnings dateEverforth Schedules Third Quarter Call for October 28
Everforth will hold its third quarter 2026 earnings conference call on October 28 at 4:30 p.m. ET.
Read about the Everforth earnings call
Executive Commentary / Industry Trends
ADP: Private Hiring Eases to 24,750 Jobs per Week
ADP’s NER Pulse shows US private employers added an average of 24,750 jobs per week in the four weeks ending September 26. ADP’s table puts the week ending September 19 at 25,250; the 23,750 we reported last week was a preliminary figure. The pace remains steady, with a slight step down.
Read the ADP NER Pulse release
Product / Platform News
SIA Atlas: California and New York Hold 22.5% of Healthcare Staffing Spend
SIA’s new US Geographic Opportunities Atlas puts California healthcare staffing revenue at nearly $4.78 billion in 2025, or 12.4% of US spend, and New York at $3.88 billion, or 10.1%. Texas, Florida, and Pennsylvania follow. Territory and acquisition planning starts with two markets that together hold 22.5%.
Read about the SIA spend data
Leadership Changes
AHSG Names David Durbin CEO Effective October 12
American Health Staffing Group’s board named Durbin CEO, and he keeps his post as President of Trio Workforce Solutions. He succeeds Kelly Rakowski, who is leaving for a new opportunity and remains through October 16 to support the handover. One executive now leads both the group and Trio.
Read about the AHSG CEO appointmentBeth Israel Lahey Health Names Peter Shorett CEO Effective January
BILH’s national search ended with its senior executive vice president and chief operating officer, who joined in 2019 from Chartis. An internal successor signals continuity.
Read about the BILH CEO appointmentWellSpan Health Names Laureen Driscoll CEO Effective January 4, 2027
Driscoll, a registered nurse, currently serves as chief executive of Providence’s south division, which oversees 17 hospitals. She succeeds Roxanna Gapstur, Ph.D., who announced her planned retirement in April. WellSpan is a 12-hospital, $4.7 billion nonprofit in Pennsylvania.
Read about the WellSpan CEO appointmentJoint Commission Names Ken Grubbs COO, the First Nurse in the Role
Grubbs, currently chief nursing executive and executive vice president of Accreditation and Certification Operations, becomes chief operating officer on January 1. He succeeds James Merlino, M.D., who takes over as president and CEO. A nurse will run operations at the accrediting body.
Read about the Joint Commission COO appointment
Legal / Regulatory
New Jersey AI Employment Bill Clears Senate Labor Committee 5-0
Previously covered: Our October 9 issue noted S4075 as proposed in the Warden AI tracker.
Why it matters this week: The Senate Labor Committee voted 5-0 on October 1 to send the bill to the Senate Budget and Appropriations Committee.
S4075, the FAIR Act, would regulate employment and other uses of AI-based technologies. Firms placing workers in New Jersey should watch the Budget Committee calendar.
Read about the New Jersey FAIR ActCalifornia Signs AI Layoff and Workplace Surveillance Laws
Previously covered: Our October 2 issue covered SB 947, the “No Robo Bosses Act.”
Why it matters this week: A law firm analysis details two other bills signed the same day, September 30.
SB 951 adds disclosure duties to California WARN notices when AI or automation drives a mass layoff, operative January 1, 2027. AB 1883 restricts AI-enabled workplace surveillance, including emotion and neural data inference, effective January 1, 2027.
Read about the California AI workplace lawsSIA Publishes North America Legal Update for Q3 2026
Per SIA’s description, the members-only report covers AI regulation, background checks, independent contractor tests, job posting requirements, minimum wage increases, pay transparency, and privacy across North America. Compliance teams can use it as a quarterly checklist.
Read about the SIA legal updateACLU Files Civil Rights Complaint Against Criteria Corporation
The ACLU and ACLU of Northern California asked the California Civil Rights Department on October 6 to investigate Criteria, alleging its Emotify assessment closely mirrors clinical autism tests and may screen out qualified applicants. Employers using Criteria assessments should review vendor terms.
Read about the ACLU complaint
AI Regulation Watch
Warden AI Tracker Now Lists 44 Workplace AI Regulations
Warden AI’s tracker shows 44 regulations across 29 jurisdictions, with 26 in force and 2 upcoming. Our October 9 issue reported 43 regulations and 25 in force.
Read about the Warden AI regulation trackerColorado SB 26-189 Takes Effect January 1, 2027
Deployers of automated decision-making technology must give notice before use, provide a plain-language explanation within 30 days of an adverse outcome, and honor data correction and human review requests. The Warden AI page notes the law does not mandate formal bias audits.
Read about Colorado SB 26-189
On Our Radar
These are the developments we are tracking closely heading into next week and why they matter for the sector.
Health System Equity in Staffing Technology: UPMC Enterprises now has a board seat at VeloSource. We are tracking whether a second health system announces an investment or board seat in a staffing or workforce technology company by January 13, 2027, which would turn one deal into a pattern.
New Jersey FAIR Act Next Step: S4075 now sits with the Senate Budget and Appropriations Committee. We are tracking whether that committee schedules a hearing or the full Senate votes by January 13, 2027, because passage would add a second AI compliance layer for firms placing workers in New Jersey.
Radar Check-In
On August 7 we flagged VeloSource’s need for a first large health system MSP win. On October 14, VeloSource announced a strategic investment from UPMC Enterprises, which will hold a board seat. The release does not describe an MSP contract, so we are still watching for a named health system MSP or VMS contract. Source
