3 Medical Service Industry Stocks Set to Counter Workforce Issues

Why It Matters

The convergence of digital health, analytics growth, and labor constraints creates a structural tailwind for service‑focused providers, making them attractive investment opportunities in a lagging sector.

Key Takeaways

• Healthcare analytics market $30.33B, 28.2% CAGR to 2034.
• US digital health $185B, 15.9% CAGR through 2034.
• Workforce shortage 100k by 2028, 73k nursing assistants.
• BrightSpring earnings +61% 2026, revenue growth 14.8%.
• InnovAge earnings forecast +213.6% 2026, revenue +10.6%.

Pulse Analysis

Digital health’s ascent is redefining how medical services are delivered. The U.S. market, now worth $185 billion, is expected to grow at nearly 16% annually, while global healthcare analytics is set to expand at 28% CAGR. These forces generate massive data streams that enable providers to personalize care, cut costs, and improve outcomes, positioning analytics‑savvy firms as essential partners for hospitals and insurers.

At the same time, a deepening labor crunch threatens traditional, labor‑intensive models. With an estimated 100,000 healthcare workers missing by 2028—most acutely among nursing assistants—providers are turning to technology and outsourced services to fill gaps. Companies like BrightSpring, InnovAge, and PACS are leveraging telehealth, AI‑driven analytics, and strategic acquisitions to extend care beyond brick‑and‑mortar facilities, improve staffing efficiency, and capture higher-margin, value‑based contracts.

Even though the broader Medical Services industry trails the S&P 500 and carries a low Zacks Industry Rank, its valuation remains modest at a forward P/E of 14.8×. The three highlighted stocks combine strong earnings momentum—BrightSpring +61%, InnovAge +213%—with expanding revenue streams, making them compelling bets for investors seeking exposure to the sector’s long‑term secular growth drivers while the market discounts short‑term challenges.