Edit Metric
|
||||||||||||||||||||
Details
|
||||||||||||||
AMN Healthcare Services (AHS)Stock (Temporary and Permanent Staffing Industry)
 Economic downturns threaten temporary staffing companies, as clients prefer permanent staff to temporary professionals.[5] Despite this, long-term growth in healthcare staffing is driven by the rising shortage of healthcare professionals, notably registered nurses,[6] and growing demand fueled by the rapidly aging baby boomers. In 2005, the demand shortfall for registered nurses in the U.S. (or the percentage of total demand that went unmet) was 10%, up from 6% in 2000.[7]
[edit] Business Segments [edit] Nurse & Allied Healthcare Staffing (69% of revenue)This segment provides hospitals and healthcare facilities with temporary professionals, typically for periods of four to 26 weeks.[9] In 2007, nurses accounted for 90% of this segment's placements; since nurses account for around 25% of hospitals' operating expenses, they readily enlist staffing agencies to find temporary nurses.[10] Therapists, medical assistants, and technical staff comprised the other 10% of the Nurse & Allied Healthcare Staffing segment's business in 2007.[11] [edit] Locum tenens staffing segment (27% of revenue)Locum tenens staffing includes the temporary placement of physicians as independent contractors in healthcare settings. Assignment lengths range from a few days to one year, with the average assignment being a multi-week contract.[12] [edit] Physician permanent placement services segment (4% of revenue)In this segment, AMN charges hospitals a fee to find permanent physicians, as well as variable fees tied to the physicians' work after their placement.[13] The strong demand for physicians, coupled with the overlap of clients seeking physicians for temporary and permanent assignments, lets AMN cross-sell its locum tenens and permanent placement services.[14] Though this segment only brought in 4% of 2007 revenue, it accounted for 14% of operating income. [edit] Business Financials Revenue grew 7.6% in 2007 to $1.16 billion. The increase in revenue and net income between 2005 and 2006 is due to the acquisition of MHT in November 2005.[16] The following four operating metrics are indicative of AMN’s performance in the healthcare staffing industry:
[edit] Key Trends and Forces [edit] Shortage of nurses in the U.S. growingBetween 2000 and 2005, the shortage of qualified nurses in the U.S. increased from 110,800 to 218,800; in 2005, 10% of all demand went unmet as a result of this shortage.[23] As nurses become more and more scarce relative to demand, hospitals and healthcare facilities turn to staffing agencies like AMN to meet their staffing needs. On the other hand, as competition increases for qualified nurses, companies have to offer higher compensation and more attractive benefits to stay competitive. In 2007, $23.9 million of the $35.4-million increase in operating costs for the nurse and allied healthcare staffing segment was due to increases in wages, housing costs, and health insurance costs.[24] [edit] The aging U.S. population needs more medical care According to estimates from the U.S. Census Bureau, the number of Americans age 65 or over is growing faster than the general population. As a wave of baby boomers hits 65, this growth is expected to outpace growth of people age 64 and younger by as much as four times by the year 2020.[26] Older people require much more healthcare per capita than younger age groups, meaning that the U.S. healthcare industry is having to grow to accommodate the additional demand.[27] As hospitals and healthcare facilities find themselves short of nurses, physicians, and other medical professionals, staffing firms like AMN benefit from the increased demand for trained medical staff. [edit] Competition & Market ShareAMN Healthcare is the largest firm by revenue in the three fastest-growing segments of the healthcare staffing market: travel nurse and allied healthcare, locum tenens and physician permanent placement.[28] In addition to competing with recruiting departments and interim staffing pools of healthcare facilities, some of the company’s main competitors in the sector include: [29]
[edit] References
|
The Shelf
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Edit
History
Bookmark
