- Providers of temporary workforce solutions to hospitals, AMN Healthcare Services ( NYSE: AMN ), and Cross-Country Healthcare ( NASDAQ: CCRN ) fell on Wednesday as Jefferies cited a decline in demand for temporary staffing.
- Based on data from private healthcare staffers, the analyst Brian Tanquilut noted that both job availability and travel nurse demand dropped from Jan. 10 – Jan. 17 while median bill rates also fell as expected.
- The analyst argues that HCA Healthcare ( HCA ), Tenet Healthcare ( THC ), and Community Health Systems ( CYH ) can benefit from “the notable drop in demand,” which indicates a reduced need for temp labor in healthcare systems.
- Tanquilut reaffirms Buy ratings on all three healthcare providers as well as staffing firms AMN ( AMN ) and Cross-Country ( CCRN ), noting that the latter group can sustain earnings power thanks to slower-than-expected bill normalization.
- “Our bullish sentiment towards staffers is based on the belief that demand will settle notably higher than pre-COVID levels resulting in sustained earnings power in out-years,” the analyst added.
- In December, Hedgeye added AMN Healthcare ( AMN ) as a new short idea expecting pressure on rates, volumes, and margins.
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AMN, Cross Country fall as Jefferies cites lower temp staffing demand