AMN Healthcare Services Inc. (NYSE: AHS) reported second-quarter revenue rose 7.7 percent year over year to $253.9 million, in-line with guidance. Revenue rose across the company’s segments:
- Nurse and allied healthcare staffing: $170.1 million, up 7.3 percent year over year.
- Locum tenens staffing: $72.7 million, up 7.6 percent.
- Physician permanent placement services: $11.1 million, up 15.8 percent.
Gross margin improved to 29.3 percent in the second quarter — above guidance — from 28.4 percent in the year-ago quarter.
Second quarter net income was $8.4 million compared to a loss of $81,000 in the second quarter of last year.
Management reported in a conference call with analysts that the company continues to work at increasing the mix of its revenue coming from managed service provider contracts — citing a 50 percent to 60 percent MSP penetration rate in other industries where maturity has been reached. But the healthcare industry is about a decade behind other industries in MSP and VMS penetration.
“In the segments of healthcare nursing is by far the most penetrated; we still think that's still in the low 20 percent to 30 percent area,” Bob Livonius, president, strategic workforce solutions, said in the conference call with analysts. “But then in the allied sector, it's really even smaller. And then Locums is brand new. So there's still a lot of runway for the healthcare sector to even catch up with what's already happened in the rest of the temporary help market.”