AMN Healthcare Services Inc. (NYSE: AMN) reported third-quarter revenue rose 59.1% year over year, exceeding the high end of its guidance range by 11%. The company noted severe workforce shortages and growing patient volumes have elevated healthcare labor demand to unprecedented levels.

“Our country is experiencing the most severe healthcare labor shortage in history, and it will likely persist for many years to come and forever change the workforce management paradigm for healthcare organizations,” said CEO Susan Salka. “With an expectation of this environment continuing for the foreseeable future, our team is rapidly deploying digital solutions, automation and hiring a record number of new team members to enable placement of healthcare professionals now and evolve AMN’s solutions to meet this higher demand long term.”

Revenue from all segments exceeded guidance.

In the company’s nurse and allied solutions segment, AMN reported travel nurse revenue grew 56% year over year while allied revenue rose 62%. Segment revenue included $23 million related to labor disruption activities.

Locum tenens revenue, which is included in AMN’s “physician and leadership solutions” segment, rose 31% year over year and 14% sequentially. Interim leadership revenue, also included in this segment, rose 59% year over year and was flat sequentially. Meanwhile, revenue from physician and leadership search businesses rose 33% year over year and 4% sequentially.

In AMN’s “technology and workforce solutions” segment, language services revenue was up 33% year over year while vender management system revenue was up 113% year over year to $33 million.

Revenue by segment

Guidance

Overall, fourth-quarter revenue is forecast to increase by approximately 80% year over year. Nurse and allied solutions segment revenue is expected to grow by 96% to 100% year over year while physician and leadership solutions revenue is expected to be up by approximately 35%. Technology and workforce solutions segment revenue is expected to grow by approximately 50%.

The guidance includes $14 million from labor disruption activities.

Share price and market cap

Shares in AMN were down 14.83% to $95.75 as of 11:19 a.m. Eastern time; however, they set a new 52-week high during trading so far today when they reached $124.62, according to FT.com. AMN has a market cap of $5.31 billion.