AMN Healthcare Services, Inc. (NYSE:AMN) Q2 2023 Earnings Call Transcript

Kevin Fischbeck: Okay. And then maybe just the last question, I guess, historically, as we thought about how this year was trending, and then we thought about 2024. You guys seem to be guiding to like, the Q4 numbers probably take that annualize it, and that’s a good base to think about for next year. If I hear what you’re saying about Nurse and Allied being up at [indiscernible] divisions being down, that Q4 revenue overall might be flattish to maybe slightly up, which would put you more like a 35 type base for annualized. Is that the right way to think about the jumping off point into next year, or is there something wrong with that?

Jeff Knudson: It’s directionally correct, Kevin, I would say you could think about the back half run rate. Certainly on the top-line would smooth out some of that seasonality, particularly within PLS and TWS, as well as on the margin side.

Kevin Fischbeck: Okay. So the back half of this year guidance annualized and then from there you think growth in bill rates and bill to hours makes sense?

Jeff Knudson: Rates will depend on inflation, but we would probably envision them being pretty flattish, next year off of those Q4 levels. I think Cary spoke about the depth of the MSP pipeline. Obviously, we have tailwinds within Locums as well as Language Services as well. And then the marketplace client churn could potentially be a headwind as well.

Kevin Fischbeck: Okay. Perfect. Thank you.

Operator: One moment for our next question. Our next question comes from Tobey Sommer of Truist Securities.

Tobey Sommer: Thanks. With another three months at the firm, Cary, maybe could you share a bit more with us about how you may shape the business in the portfolio as the business looks to be stabilizing towards year end?

Cary Grace: Yes. Thank you. And I think hopefully you have gotten this sense both in terms of what we’ve done from a leadership standpoint, as well as areas of emphasis that we have underscored over the past couple of quarters. We look at our portfolio as being very well positioned in a period of extraordinary change with our clients and in the overall healthcare workforce ecosystem. Areas of focus for us. Number one, particularly during this period of inflection, will be on our customers and by customers it will be both on the client side and on the clinician side. On the client side, we will continue to drive towards a total talent solutions solution set for them, starting with how we help them in overall workforce planning, which is of incredibly high interest, and be able to operationalize that plan through our broad set of solutions.

All of that, both in terms of how we interface with them and also what we do on our own platforms, will have increasing degrees of integration on the technology side. On the clinician side and we mentioned this in the opening comments about Passport. We continue to want to support our producers in their relationships with their clinicians in making it easy 24/7 for our clinicians to have access to a wider range of capabilities through Passport. Obviously, that has gone very well. We have over 200,000 clinicians on that app. Second big area of focus is all the efforts around one AMN, how we continue to strongly grow both organically and through M&A, but have a platform that’s going to benefit from the growth that we have both organic and inorganic.

It has brand component, how we operate our company more effectively, client centricity about how we approach the clients and truly wrap our entire set of solutions around them. Third big component is technology, which I think you’ve heard me talk about over the past two quarters. And you should expect that to continue. We are accelerating all things tech and digital, and then the last two pieces are M&A. We have grown very successfully in the past as part of our overall strategy through M&A. We expect the M&A market and opportunities to continue to accelerate as we leave the year and get into next year. And we would expect to participate in that. And then finally, all of that will be underpinned by our foundation and our culture around DEI, inclusion, attracting and retaining the best talent.