Healthcare Staffing Report: May 11, 2023

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AMN Healthcare Q1 revenue down 27.5%, names two new execs

First-quarter revenue at AMN Healthcare Services Inc. (NYSE: AMN) fell 27.5% to $1.13 billion, with the nurse and allied segment seeing the biggest year-over-year decrease. The healthcare staffing provider also named two new executive hires.

Revenue was down across segments.

First-quarter revenue in the nurse and allied segment — the company’s largest — was down 32.9% from the record-high quarter a year ago, the company said. Travel nurse revenue fell by 39%, while allied division revenue declined 8%.

Meanwhile, physician and leadership solutions revenue fell 7.7%. Locum tenens revenue, included in the segment, fell 5% year over year to $107 million. Interim leadership revenue fell 9%. Physician and leadership search revenue declined by 16%.

Technology and workforce solutions revenue slipped by 6.2%. Vendor management system revenue fell 28% year over year to $54 million. However, language services revenue rose 25% to $62 million.

Gross margin improved.

“The AMN team delivered a strong first quarter, and we achieved this while accelerating our pace of change to meet the dynamic needs of our markets,” President and CEO Cary Grace said.

AMN also named two new executives. Meredith Lapointe was appointed chief business officer. Lapointe comes to AMN from McKinsey & Co., where she was a partner. Also, AMN named Patrick McCall as chief growth officer. McCall formerly served as global chief revenue officer at People2.0; his other experience includes 10 years as global chief sales officer at Randstad. McCall appeared on the Staffing 100 list in 2020.

Guidance

AMN forecast second-quarter revenue of between $970 million and $1.00 billion, a year-over-year decrease of between 30% and 32%. Nurse and allied revenue is expected to be down between 36% and 38% year over year; physician and leadership solutions segment revenue is expected to be down by approximately 5% and technology and workforce solutions segment revenue is expected to be 15% lower.