Last month, AMN Healthcare and Cross Country Healthcare released their 2Q16 financial results, summarized in Staffing Industry Analysts’ recently released Financial Results of Staffing Companies report. The report provides the financial results of 22 publicly traded staffing firms, including AMN and Cross Country, for the most recent fiscal quarter.

AMN Healthcare’s revenue grew by 35.3% year-over-year (19% adjusting for acquisitions), while Cross Country Healthcare’s grew 3.5% (1% adjusting for acquisitions) during the same time. AMN’s 19% adjusted revenue growth was the highest among the 22 public staffing firms in the report. Gross margin for both firms expanded compared to the previous year; AMN Healthcare’s gross margin increased 130 basis points to 32.7% while Cross Country’s gross margin improved 240 basis points to 27.5%.

Peeling back the onion

Pricing was a bright spot for Cross Country. The revenue decline of 20% in the physician segment was entirely due to lower volume; the firm reported modest pricing gains across most physician specialties. Bill rates in Cross Country’s nursing and allied segment rose by 7.2% year-over-year (with the travel nurse portion of this business up by 10.8%); the segment experienced a slight decline in volume on an organic basis. Cross Country’s higher gross margin in the quarter was attributed to an increase in its higher margin workforce solutions business as well as pricing improvements.

AMN Healthcare noted its revenue growth was driven by both volume and pricing, and it noted that improved gross margin was due to a higher mix of workforce solutions business as well as improved pricing in its locum tenens segment.

While revenue growth may be moderating in the healthcare market, the latest results from the two major publicly traded healthcare staffing companies suggest favorable trends in pricing.

Corporate members can read full analysis of public staffing companies’ financial results online.