Revenue at Cross Country Healthcare Inc. (NASD: CCRN), the third-largest US healthcare staffing firm, rose 2.7% in the fourth quarter, and gross margin improved. Revenue of $193.1 million was at the low end of guidance of $193 million to $198 million.

The Boca Raton, Fla.-based firm reported nurse and allied staffing revenue rose 10.0%, attributable to organic growth, improved margins and the impact of its $33 million acquisition of Mediscan in October. Meanwhile, physician staffing revenue fell 10.3%, primarily due to a decrease in volume.

Cross Country sold its education seminars business Aug. 31, resulting in a 63.6% decrease in revenue in its “other human capital management services” segment.

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“After only the second full year executing our turnaround plan, I am extremely pleased with the progress we are making,” President and CEO William Grubbs said. “We continue to execute on our strategy as a leader in healthcare staffing and as a provider of value-added workforce solutions. … The market remains robust and we expect 2016 to be another year of providing our shareholders with superior returns.”

Revenue by segment

Guidance

Cross Country expects first-quarter revenue to range between $195 million and $198 million, up 5% to 6% on a year-over-year basis, and first-quarter gross margin of 25.0% to 25.5% range.

Share price and market cap

Shares in Cross Country Healthcare fell 16.25% in early afternoon trading to $11.75. The company had a market cap of $382.75 million, according to Yahoo!