Monday, November 16, 2009

Major Healthcare Staffing Companies Take Major Hit to Revenue 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...
Hospital Recovery Appears V-shaped There have been some positive articles in the last couple of weeks suggesting that the financial health of hospitals is improving. Health Leaders Media is reporting that hospitals are not only recovering but showing signs a 'V' shaped recovery (one that both declines and recovers quickly). "There has been an improvement at the hospital level that has allowed them [hospitals] to ease up on the cost containments," he says. "To the extent that they can, hospitals do not want to get caught not operating at appropriate levels in terms of staffing because that is going to hurt them in the long run. Job growth may not come back to historical levels, but over the next 12 months it will definitely be up from what we have seen through much of this year." Of course, the only thing to be leery of when predicting 'V' shaped recoveries is that the prediction is too early and in fact, what we're seeing is a 'W' (an economy that declines, recovers and declines again). There are several predictions being thrown around in regard to the healthcare staffing industry and the 2010 economic outlook. Hopefully this won't be the case. Reading about specific regions, such as Texas, also seeing signs of hospital recovery is also good news. The percentage of hospital revenue left over after regular business expenses increased from zero in the third quarter of 2008 to 4 percent in the second quarter this year. In Texas, the proportion increased from 6 percent to...

Jason Lander

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