Cary Grace: Yes. Let me start and talk a little bit about MSDR. And so I think this is officially their first full quarter part of the AMN team, and we are both excited about what they can do for our clients and excited about working with them. We talked about the rationale behind MSDR and what it can do for our locums portfolio, particularly in their strengths around site surgery, radiology and behavioral health. What we focused on in the first quarter is the integration. So when we talked about the MSDR acquisition, it really was the acquisition to some degree of two companies, MSI and DRW. And so while those two companies shared back end systems and a number of functions, they still hadn’t integrated some of their front office capabilities, including their candidate pool.
So the first quarter, we focused and completed the integration of those two firms so that we could then integrate and start doing order sharing with AMN. So that integration went very well, and we are in the process of starting to do the order sharing now with that combined company with AMN. We did not have some of the revenue growth during that integration that we would have expected. And so as we now have the integration completed on an accelerated timeline and we’re starting to do order sharing with AMN, we are excited about what that can do to help us with the locums demand that we have as we go through this quarter and beyond.
Jeff Knudson: Trevor, this is Jeff. On the core side, the locums business was up 1% year-over-year. We would expect sequential growth on the core side as we move into Q2, and then improving year-over-year comparisons in the back half for organic locums.
Trevor Romeo: Okay, understood. Thanks, Jeff. Appreciate the time.
Operator: Thank you. One moment for our next question. And our next question comes from A.J. Rice of UBS. Your line is open.
A.J. Rice: Thanks. Hi, everyone. First of all, maybe just to go back to contracting and customer activity, about last year, there was a lot of chatter about an unusually high number of people going out for contracting, people wanting post-pandemic to try something different. If they had been MSP, maybe they were going to look at vendor neutral solutions or maybe they were going to look at insourcing. Have we sort of worked through that? And now it’s back to normal course of business that you have contracts come up, but maybe some of that accelerated churn and a desire to try something different has been satisfied at this point? Or how would you characterize customers approach to RFPs?
Cary Grace: I’d almost kind of take it as if I look at approach to RFPs, you did have what I’d say, this kind of hiatus during the pandemic that probably created a little bit of a higher watermark last year. The thing that we’re seeing from clients is really looking at new models that are going to help them build a workforce in a labor environment that they expect to continue to be supply constrained. And so the conversations and what we get very excited about, especially given our solutions portfolio is there’s a lot of focus on the tech enablement of those capabilities. And so as we talked to clients, we rolled out automated technology that enables internal float pools, and went live with our clients last year on that.
And so those types of solutions, A.J., I think there’s as much interest and maybe on the margin, even more interest around how do I really think about the next-generation of solutions that we can work with you on to build a sustainable workforce that’s both high quality, cost effective and more automated.
A.J. Rice: Okay. I know a lot of focus on demand and rightly so. But any updated thoughts on how supply is trending? Are you seeing new recruits coming to travel nursing? Have you seen most of the people that maybe just did it on a temporary basis and the pandemic wash out at this point? His expectations around pay rates on the people that are doing travel nursing, is that sort of gotten in line with where the market is?
Cary Grace: Yes. If you look overall, new applications remain above pre-pandemic levels. So you can look at that as I’d say, a general commentary on supply, you’re going to find pockets. We have this in certain specialties of allied. We have it, I’d say, across the physician market, where you’re going to have more demand than supply. If you look at the psychology, and I’ll specifically talk to travel nurse, we do a survey, and if you look at the survey, there’s high single digit percentage of almost 20,000 nurses that said they wanted to travel. And for that core group, it wasn’t necessarily just around pay, it was around lifestyle, ability to manage well-being. And so that core group, I think we continue to see strong interest in doing travel roles. There were some nurses who may have come in at the pandemic, both as the service and need arise and also the pay. But I think you’ve largely seen that normalize back.
Jeff Knudson: A.J. on your bill pay spread question. I would just say when we look at the second quarter for nurse and allied gross margin, the pay rates relative to the bill rates quarter-over-quarter compared to the first quarter are very stable. It’s really the other elements of the pay package, housing and travel, that are putting some pressure on the nurse and allied gross margins along with the mix shift away from international nurse due to the impacts of visa retrogression. And to a lesser extent, we’re seeing a reduction in hours, particularly within allied is what’s causing the sequential pressure in Q2 on nurse and allied gross margins.
A.J. Rice: Okay. All right, thanks a lot.
Operator: Thank you. One moment for our next question. And our next question comes from Brian Tanquilut of Jefferies. Your line is open.
Brian Tanquilut: Hey, good afternoon. I just want to reconcile some of the comments so far. So what I’m hearing is June is probably the bottom, but I also hear, Cary, your comments about how your smaller clients are saying that they’re probably a couple of quarters away from seeing the bottom of them reducing their reliance on temp. So just curious, I mean, without thinking guidance, right? But is it right to think that there should be carry or could be carry over impact or further declines in revenue as we think about Q3 versus Q2?
Jeff Knudson: That’s right, Brian. I mean, I don’t think we were saying that Q2 or that June was the bottom. We were saying it’s the low point within the second quarter. And so that’ll be about 10% below the average travelers on assignment that we have for the entire quarter. We would also expect some modest bill rate decreases in the low single digits Q3 over Q2.
