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Nursing Staffing Idea Proposal (AMN, CCRN)

Nursing Staffing Idea Proposal (AMN, CCRN)
 

Has the nursing shortage peaked? How will the leading providers of temporary nurses be affected by the current nursing staffing cycle?

 

Report Available:June 14, 2017

 

Blueshift’s initial research found that the existence of a nurse shortage and its future is a frequently discussed, debated and studied issue. U.S. government agencies have researched the situation and different agencies draw different conclusions. The Bureau of Labor Statistics says 1.2 million vacancies will emerge for registered nurses between 2014 and 2022. The U.S. Health Resources and Services Administration (HRSA) is predicting a nursing surplus by 2025. This raises the question of where we are in the staffing cycle and what the affect will be on nursing staffing companies CCRN and AMN.

 

Observations

  1. In February, The Atlantic featured an article The U.S. Is Running Out of Nurses which said, “The country has experienced nursing shortages for decades, but an aging population means the problem is about to get much worse.” The article cited travel nurses as a possible option for filling these openings, but this solution comes at a premium and puts CCRN and AMN in position to benefit handsomely.
  2. On the other hand, the 2015 HRSA report projects a surplus of 340,000 nurses by 2025. The report found that the number of new nurse graduates skyrocketed over the last decade to meet the shortage, from 68,759 in 2001 to more than 155,000 in 2013. The HRSA nursing projection model assumes graduation rates will remain fixed at their current levels, which will lead to the surplus.
  3. In a primary interview with Blueshift, an executive for a travel nurse company said there is still a shortage of nurses across the U.S. and the demand for nurses does not show signs of slowing. “We currently have more than 2,000 RN job openings in the 50 states. Many of our jobs are for nurses trained in specialties such as intensive care or telemetry, but we also have general med/surgical jobs. … From the hospital requests we are getting, the nursing shortage is still going strong, especially in the specialty areas. I have read on the American Nurses Association [website] that the need for nurses will continue to grow, especially as the population ages. From our perspective, we are not planning on a nursing glut anytime soon.”
  4. Q1 results for CCRN were mixed. CCRN suffered a $2 million loss compared to a reported profit for the same time period a year ago. CCRN missed Wall Street’s revenue expectations, beat the Street’s EPS forecast, and provided Q2 guidance below analyst predictions. The company cited a slower-than-expected revenue ramp from 30 new Managed Services Programs which are taking longer to implement than expected.
  5. AMN reported a Q1 profit of $32 million and beat the Street’s revenue and EPS expectations, but guided below what the Street expected. AMN’s Q1 revenue of $495 million was up 6% year to year, driven by strong results in its Travel Nurse division which grew 9% and the Allied division which climbed 14%.

 

At what stage is the U.S. nurse shortage? What areas of the country are most affected by the nurse shortage? How are hospitals and medical facilities dealing with the shortage? Are contracts with healthcare staffing agencies increasing, decreasing or flat? How are billing rates from healthcare staffing agencies trending now and through 2018? How is demand for nurses from healthcare staffing agencies trending? What does the competitive landscape look like? How is competitive bidding trending? What does all this mean for CCRN and AMN? What are the differentiating factors between the two companies? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Urban and rural hospitals and medical facilities, Private healthcare staffing companies, Nursing schools, Travel nurses, and Industry specialists.

 

Companies: AMN Healthcare services Inc. (AMN),Cross Country Healthcare Inc. (CCRN),MEDNAX Inc.(MD)

 

Research Begins: May 30, 2017