AMN Healthcare Services Inc. (NYSE: AMN) reported first-quarter revenue rose 13.2% but was up 3% on an organic basis. The healthcare staffing firm reported travel nurse demand was strong in the second half of March and much of April; however, demand has since fallen significantly reflecting a decline in crisis assignments.
AMN also noted that all divisions — except travel nurse and VMS — were negatively impacted in the first quarter as the Covid-19 crisis prompted a nationwide reduction in elective procedures and overall healthcare utilization. The reductions started in the second half of March.
| (US$ thousands) | Q1 2020 | Q1 2019 | % change |
| Revenue | $602,461 | $532,441 | 13.2% |
| Gross profit | $202,066 | $176,759 | 14.3% |
| Gross margin percentage | 33.5% | 33.2% | |
| Net income | $12,965 | $34,122 | -62.0% |
AMN realigned its reporting segments. Its new “nurse and allied solutions” segment also includes the company’s revenue cycle solutions business that provides “skilled labor solutions for remote medical coding, clinical documentation improvement, case management, and clinical data registry, and also provides auditing and advisory service.”
The company’s “technology and workforce solutions” segment includes remote video interpreting, vendor management solutions, predictive analytics, RPO and credentialing services. The third segment is “physician and leadership solutions.”
Revenue by segment
| (US$ thousands) | Q1 2020 | Q1 2019 | % change |
| Nurse and allied solutions | $424,346 | $373,472 | 13.6% |
| Physician and leadership solutions | $137,842 | $137,077 | 0.6% |
| Technology and workforce solutions | $40,273 | $21,892 | 84.0% |
The company noted that nurse and allied solutions revenue was up 3% on an organic basis. Nurse division revenue was up 6% organically and allied division revenue was up 5% organically.
Technology and workforce solutions revenue was driven by AMN’s acquisitions of b4health and Stratus Video. On an organic basis, revenue in this division was up 13%.
Guidance
AMN forecast second-quarter revenue of between $550 million and $570 million, a year-over-year increase of between 2.8% and 6.5%.
Share price and market cap
Shares in AMN were down 9.71% to $41.08 as of 11:49 a.m. Eastern time today; market cap was $2.13 billion, according to FT.com.