Cross Country revenue falls 30.5% in Q3 with decline in nurse and allied

Third-quarter revenue at Cross Country Healthcare Inc. (NASDAQ: CCRN) fell 30.5% year over year to $442.3 million but was within guidance. The decline was in the company’s nurse and allied segment, where revenue fell 35.2%.

“Though the market remains challenging, especially for nursing, we are pleased with the growth in other lines of business, like physician staffing, education and homecare staffing,” President and CEO John Martins said in a press release.

In Cross Country’s nurse and allied segment, the average number of field contract personnel on a full-time equivalent basis fell to 9,849 in the third quarter from 12,524 in the year-ago quarter. Revenue per full-time equivalent per day also fell to $434 in the third quarter from $526 a year ago.

However, third-quarter revenue rose 91.8% in Cross Country’s physician staffing business, though revenue was up 21% when excluding the impact of acquisitions. Total days filled rose to 23,004 in the third quarter from 13,219 in the same period a year ago.

In October 2022, Cross Country acquired Mint Medical Physician Staffing LP and Lotus Medical Staffing LLC. Cross Country also announced in December 2022 that it acquired Hireup Leadership Inc., an executive search firm based in Santa Barbara, California.

The third quarter also had restructuring costs of $348,000 compared to restructuring costs of nearly $2.5 million in the third quarter of last year. In addition, the company reported $186,000 in impairment charges in the third quarter, down from nearly $3.9 million in the year-ago quarter.