Revenue Continues to Drop for Major Healthcare Staffing Firms

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 previous year.

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.

Comments

[Brad Garrett]

Bigger they are the harder they fall

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, H. Ford

Bradley M. Garrett
brad@tghealthcare.com

[Medical Staffing Agency]

We aren't out of the woods yet. Hopefully the economy will pick up soon!
Medical Staffing Agency

[Martymatheny]

Interesting. I keep reading that temporary employment has been risen over the past 5 months because the economy is rebounding and many full-time workers have been laid off. Aren't these staffing firms providing temp workers? I'd think they'd be benefiting from the trend.

--Marty

[Jason Lander]

Hi Marty. You are correct with what you know of the trend improving overall for temporary employees. However, there are different industry segments within staffing. Healthcare staffing in particular has yet to rebound while the other industries have seen some signs of improvement.

[Brad Garrett]

TheBG_Show American Mobile Healthcare WOW! Call them you get put to voice mail! How does this happen>>>>>>>>> Might be why they are down 20% ??????
less than 5 seconds ago via web