Friday, March 12, 2010

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.
Broadlane WFX Rebrands to Prolucent & Some Rebranding Tips A couple of months ago I wrote about AMN's re-branding campaign. Now, another major player in the healthcare staffing industry has gone through a similar effort. Broadlane's Workforce Management Services has rebranded itself from Broandlane WFX to Prolucent. If you're considering a rebranding campaign for your staffing agency now is the perfect time to do it. The trends in the healthcare staffing industry have been bleak over the last 1.5 years. However, as things start to pick up again hospitals will be re-evaluating their staffing agency partners. Approaching them with an improved identity, renewed focus and new service offerings can go along way toward keeping the attention of your clients or getting new ones to notice you. If you do decide to rebrand I offer the following tips: Make sure you understand what all is involved with this effort. A brand is more than a logo. You don't want to simply update your logo or website and overlook the rest of your promotional material. Promoting an inconsistent brand sends a bad message to the market. If you rename your company or product chose something that's easy to pronounce. Although 'Broadlane WFX' wasn't a great name, I'm not sure the name 'Prolucent' is any better. Many people are going to spend time trying to figure out how to pronounce it or just skip the exercise all together and continue to call them Broadlane. Further, if you change your company name to something in another language (say for example 'Concerro') be sure...

Jason Lander

Partner | Parent | Entrepreneur | Website & Software Designer | Healthcare staffing blogger | Photographer | Musician

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