Thursday, March 25, 2010

Bankruptcy Possible for Medical Staffing Network The economy continues to take its toll on the healthcare staffing industry. Even the largest healthcare staffing agencies can't seem to find any shelter. Yesterday, one of the largest healthcare staffing firms in the nation, Medical Staffing Network Holdings Inc., warned investors that it could file for Chapter 11 in bankruptcy court to fend off its lenders from enforcing a default. MSN also stated that they are continuing discussions with lenders over a default. MSN's filing with the Securities and Exchange Commission on Wednesday, said it has been out of compliance with the terms of its first lien credit agreement with General Electric Capital Corp. since Dec. 27. MSN's situation was exacerbated by a significant drop in their 2009 revenue. As of today, Medical Staffing Network has yet to report its full 2009 results. However, in 2009 MSN lost $20 million of revenue in the first three quarters, on revenue of $265.2 million. This was a 37% decline in sales from the same period in 2008. “The company believes that based on currently projected cash inflows generated from operations, it is possible that the company may be unable to pay future scheduled interest and principal payments due to its senior lenders as such obligations become due,” Medical Staffing Network stated in the SEC filing. Boca Raton FL-based Medical Staffing Network Holdings ranked No. 4 on Staffing Industry Analysts' list of largest healthcare staffing firms. Medical Staffing Network also runs a Managed Services Program (MSP) called One Source. Hopefully the staffing...
Healthcare Reform, Healthcare Staffing & Civility Last week Healthcare Reform legislation was finally made into law. It's no secret that I've been a big proponent of this idea and written several blog posts on how healthcare reform will affect healthcare staffing agencies. Although I'm happy this legislation exists and will hopefully continue to improve I am disappointed it didn't go far enough. My hope was that we would have a universal healthcare system with coverage for all. Not yet it seems. I've already blogged about how I believe healthcare reform will benefit the healthcare staffing industry and mentioned articles where some of the nation's largest medical staffing agency CEOs also state that healthcare reform will benefit the industry. Therefore, there's no reason to repeat myself. Now that the legislation is on the books and more details are known, I'm sticking with my prediction that this legislation will be positive for the healthcare staffing industry. Of course, how this legislation is carried out will determine the exact changes we all see and feel. There are several sources around the web that have posted summaries on some of the most immediate changes the healthcare reform legislation will make. To me, the biggest question here is about the cost and potential tax increases we will all face as individuals and businesses. According to this interactive tool from the Washington Post, neither my premiums nor my personal taxes will increase due to healthcare reform. The really good news is that my premiums were expected to rise between 10-15% before "Obamacare,"...

Jason Lander

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

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