Cross Country Healthcare is one of the largest health care staffing firms in the US. Under several brands, the company places traveling nurses and other health care professionals through about 9,500 contracts with acute care hospitals, pharmaceutical companies, nursing homes, schools, and other related facilities across the nation. The firm coordinates travel and housing arrangements for its nurses, whose assignments usually last about three months at a time. Cross Country also provides health care education, training, and recruiting services for doctors and health care executives. Subsidiaries and brands include Assignment America, Allied Health Group, NovaPro, Med-Staff, TravCorps, and Cejka Search.
The company operates through three reportable segments: nurse and allied staffing (81% of net sales), physician staffing (15%), and other human capital management services (4%).
The company's nurse staffing services business segment is headquartered in Boca Raton, Florida. Its travel staffing business has operation centers in Florida, Georgia, Massachusetts, and Pennsylvania. Its Cross Country Education (CCE) subsidiary is headquartered in Brentwood, Tennessee while its Cejka Search subsidiary is headquartered in Creve Coeur, Missouri.
Sales and Marketing
Cross Country markets is services through direct mail marketing, online advertising, print media, and promotional material. It spends about $5 million each year on advertising.
Cross Country has achieved unprecedented growth the last few years, with revenues jumping 24% to peak at a record-setting $767 million in 2015. After posting three straight years of net losses, the company also posted $4 million in positive net income in 2015.
The historic growth for 2015 was driven by a 35% bump in nurse and allied staffing segment sales. This was attributed to both organic growth and additional revenue from acquisitions.
Cross Country is counting on its diverse portfolio of services and its strong relationships with hospitals all over the country to sustain itself until the conditions of the broader labor market improve.
To focus on its core markets and to streamline its operations, in 2013 Cross Country sold its former clinical trial services division to contract research firm ICON for some $52 million.
Mergers and Acquisitions
Cross Country plans to grow by focusing on making strategic acquisitions in high growth, high margin businesses and by seeking additional MSP contracts and EMR engagements with hospitals and health systems.
The company in 2015 purchased Mediscan for a purchase price of almost $30 million in cash. Mediscan provides temporary healthcare staffing and workforce services to both the health care and education markets , especially public and charter schools. While largely concentrated in California, Mediscan provides services across 11 states to more than 300 clients through more than 70 specialties. The deal gave Cross Country a new customer base in the health care staffing market for public and charter schools.
In 2014 the company acquired Medical Staffing Network, a comprehensive healthcare staffing company with 55 locations throughout the US that provides per diem, local, contract, travel, and permanent hire staffing services. Cross Country paid $48 million on the deal, which increased its branch network and market share and diversified its customer base and brings them new service lines.