It's not news to talk about how much the economy has negatively impacted the healthcare staffing industry this year. No company in the space has been immune. However, reading the Q3 financial reports of some of the major, public healthcare staffing companies is just downright depressing.
After be delisted from the New York stock exchange late last year, Medical Staffing Network has continued to take a pounding. Medical Staffing Network Holdings Inc. (OTCBB: MNSW.PK), a Boca Raton FL-based healthcare staffing firm, reported third-quarter revenue fell 41.9% to $78.9 million from $135.8 million in the same period last year.
"The healthcare staffing industry is still experiencing a difficult economic environment, although we are beginning to see some very early-stage positive trends," said Chairman and CEO Robert Adamson. "We have experienced an increase in demand in October, up from September levels, seemingly due to the flu pandemic."
Medical Staffing Network posted a net loss of $15.2 million compared with net income of $2.5 million in the third quarter of 2008. The company reported a $14.0 million charge for goodwill impairment in the most-recent quarter as well as a $700,000 charge for impairment of intangible assets.
Medical Staffing Network Holdings Inc. (OTCBB: MSNW.PK)
For the third quarter ended Sept. 27, 2009, compared with the same period in 2008.
Revenue: $78.9 million, -41.9%
Net loss: $15.2 million vs. net income of $2.5 million
The largest company in the industry - AMN Healthcare Services Inc. (NYSE: AHS), reported third-quarter revenue fell 47.2% to $166.4 million from $315.0 million in the year-ago quarter.
Nurse and allied healthcare staffing revenue fell 62.2% on a year-over-year basis in the third quarter to $82.1 million. Physician permanent placement revenue fell 30.6% in the third-quarter to $8.7 million. And third-quarter locum tenens revenue fell 11.5% to $75.5 million.
"The unprecedented market contraction experienced by the healthcare staffing industry over the past year is a direct reflection of the rapid rise to historically high levels of general unemployment," President and CEO Susan Nowakowski said. "The decline in volumes we experienced during the first nine months of 2009 have certainly highlighted the importance of our ability to remain agile and disciplined in our execution."
AMN posted a third-quarter net loss of $2.0 million compared to net income of $9.5 million in the same period last year. The most-recent quarter included a restructuring charge of $6.2 million. Fourth-quarter revenue is estimated to decline 10% to 15% compared with the third quarter, according to the company.
AMN Healthcare Services Inc. (NYSE: AHS)
For the third quarter ended Sept. 30, 2009, compared with the same period in 2008.
Revenue: $166.4 million, -47.2%
Net loss: $2.0 million vs. net income of $9.5 million
Cross Country, who only a few short years ago held the #1 spot in the industry, also took a dramatic loss. Third-quarter revenue for Cross Country Healthcare Inc. (NASD: CCRN) fell 27.2% to $129.6 million from $178.1 million in the third quarter of 2008.
Third-quarter nurse and allied staffing revenue at the Boca Raton FL-based healthcare staffing firm fell 50.3% to $64.1 million from $128.9 million in the year-ago quarter. Clinical trials third-quarter revenue fell 35.4% to $16.4 million.
Travel nurse staffing volume rose 6% since mid-September, President and CEO Joseph Boshart said. "This improvement in staffing volume has resulted from a significant increase in demand since the spring, with current open order levels for travel nurses six times the levels seen prior to the summer."
Third-quarter net income fell 84.3% to $968,000 from $6.2 million in the year-ago quarter.
Cross Country estimated fourth-quarter revenue of $120 million to $123 million, a year-over-year decline of approximately 40% to 42%.
Cross Country Healthcare Inc. (NASD: CCRN)
For the third quarter ended Sept. 30, 2009, compared with the same period in 2008.
Revenue: $129.6 million, -27.2%
Net income: $968,000, -84.3%
Although I want to be optimistic and there are several signs out there suggesting stabilization, it's discouraging to still be seeing such dismal numbers from the top players.
This past year will give the small company's a advantage as the large companies continue to trim the fat both with nurse salaries & with internal staff. Hospitals & nurses will suffer over the next 24 months to make up for lost revenue.
“The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time” Henry Ford
Brad Garrett, COO & Founder
TGhealthcare.com
Posted by: Brad Garrett | Monday, November 16, 2009 at 07:18
That's a great quote - thanks for posting.
Posted by: Jason Lander | Monday, November 16, 2009 at 07:34