Cross Country Healthcare Inc. (NASDAQ; CCRN) raised its fourth-quarter guidance; it now expects to report an increase in fourth-quarter revenue of between 192% and 197% year over year. The Boca Raton, Florida-based healthcare staffing firm also announced co-founder Kevin Clark is stepping aside as president and CEO and will become chairman of the board. John Martins, group president of delivery, will step up as president and CEO.
“Leading Cross Country Healthcare has been one of the greatest honors of my life and I am confident that John will continue to drive and execute our strategic roadmap today and for years to come,” Clark said.
Clark co-founded Cross Country in 1986. He left in 1994 but rejoined in January 2019 to lead a turnaround effort.
Taking over the president and CEO role, Martins has nearly 20 years of healthcare leadership experience and has played a role in defining Cross Country’s long-term strategic direction of the last 12 months, according to the company. Martins has also held leadership roles at AMN Healthcare Services Inc. and Aya Healthcare Inc.
Martins’ experience also includes serving as president and holding other positions at Onward Healthcare from February 2008 to January 2015. While there, Martins reported to Clark, who was then Onward Healthcare’s co-founder and CEO.
“I am excited to take the helm of Cross Country Healthcare and look forward to driving the strategic direction that Kevin, a long-time mentor and champion of mine, put in place in a way that reflects the values of our company,” Martins said.
Cross Country also announced that Thomas Dircks, who has served as board chairman since 2013, will continue on the board as independent director. Larry Cash will continue as lead director.
Also today, Cross Country said it expects to report fourth-quarter revenue of between $630 million and $640 million, a year-over-year increase of between 192% and 197%. Final results will be released late next month. In its last earnings announcement, Cross Country had forecast fourth-quarter revenue growth of between 169% and 174%.
Clark said the company is entering this year on a strong trajectory.
“Though we anticipate an eventual softening of bill rates, demand for our services has remained robust and as a result rates have continued to remain elevated,” he said.
