The top two staffing agencies in the industry continue to see their revenue decline.
Yesterday, Cross Country Healthcare Inc. reported a fourth-quarter revenue decline of 39.7% to $124.1
million from fourth quarter 2008 revenue of $205.9 million. In addition, Cross Country's nurse and
allied staffing revenue fell 47.1% on a year-over-year basis to $65.4
million. However, on a slightly positive note, their revenue in this area rose 2.1% sequentially from the
third quarter. They also reported fourth-quarter net income of $398,000
compared with a net loss of $161.3 million in the same period in the
Today, AMN Healthcare announced similar numbers. AMN reported fourth-quarter revenue fell 51.1% on a
year-over-year basis to $144.7 million. However, their relative good news was that their gross margins improved, reporting improvements from 25.7% to 28.4% from the
previous years quarter. AMN's fourth-quarter nurse and allied healthcare staffing revenue also fell
64.3% to $74.0 million from $207.3 million in the year-ago quarter. Unlike Cross Country, revenue in the segment fell 9.9% sequentially from the third quarter.
"I'm certain most would agree that 2009 represented the most
challenging year in the history of the healthcare staffing industry,"
President and CEO Susan Nowakowski said. "The unprecedented rise in
unemployment and severe economic contraction wreaked havoc and resulted
in precipitous drops in demand volumes unlike any other time."
Sadly, signs of economic recovery for the healthcare staffing industry still seem distant.