Fourth-quarter revenue at Medical Staffing Network Holdings Inc. (OTCBB: MNSW.PK) fell 20.6% to $113.7 million as demand eroded amid the recession. The Boca Raton FL-based healthcare staffing firm reported it closed 20 per diem locations in October and cut employment headcount during the quarter.

"Demand for temporary healthcare staffing services has rapidly declined over the past several months due to an economy in recession, weak hospital admissions and the worst labor market in decades," said Chairman and CEO Robert Adamson.

Per diem revenue, which includes nurses and allied health workers on a per diem basis, fell 21.7% year-over-year in the fourth quarter to $79.0 million.

Medical Staffing Network Holdings also reported that fourth-quarter travel nurse revenue fell 18.3% to $20.6 million, and fourth-quarter allied healthcare staffing revenue fell 17.5% to $14.1 million.

However, the company improved its fourth-quarter gross margin to 25.6% from 24.6%.

Medical Staffing Network Holdings posted a fourth-quarter net loss of $67.5 million compared with a net loss of $963,000 in the fourth quarter of 2007. The company said the fourth-quarter 2008 net loss includes non-cash goodwill and intangible asset impairment charges of $68.0 million.

Full-year 2008 revenue rose 11.5% to $537.8 million, and full-year gross margin improved to 24.9% from 24.1%.

Net loss for the full year was $116.9 million compared with a net loss of $1.1 million in 2007.

Medical Staffing Network Holdings Inc. (OTCBB: MNSW.PK)
For the fourth quarter ended Dec. 28, 2008, compared with the same period in the previous year.
Revenue: $113.7 million, -20.6%
Net loss: $67.5 million vs. net loss of $963,000

For the full year ended Dec. 28, 2008, compared with the previous year.
Revenue: $537.8 million, +11.5%
Net loss: $116.9 million vs. net loss of $1.1 million