Cross Country Healthcare, Inc. (CCRN): Business Model Canvas [11-2024 Updated]
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Cross Country Healthcare, Inc. (CCRN) Bundle
In the rapidly evolving healthcare sector, Cross Country Healthcare, Inc. (CCRN) stands out with its innovative and comprehensive approach to staffing solutions. By leveraging strong partnerships with healthcare facilities and educational institutions, alongside proprietary technology like Intellify®, CCRN offers tailored services that enhance operational efficiency and ensure quality care. Explore how CCRN's business model canvas intricately weaves together key activities, resources, and customer relationships to create a robust framework for success in the healthcare staffing industry.
Cross Country Healthcare, Inc. (CCRN) - Business Model: Key Partnerships
Collaborations with healthcare facilities
Cross Country Healthcare, Inc. has established strategic partnerships with various healthcare facilities to enhance its staffing services. In the nine months ended September 30, 2024, the company reported revenue from services amounting to $1.034 billion, a decrease of 35.6% compared to $1.606 billion for the same period in 2023. This decline was primarily attributed to decreased demand for travel nurse staffing and bill rate reductions in the Nurse and Allied Staffing segment.
For the same period, the Nurse and Allied Staffing segment generated $888.5 million in revenue, down from $1.474 billion year-over-year, reflecting a 39.7% decline. The average number of full-time equivalents (FTEs) on contract decreased by 25.3% compared to the previous year, indicating a shift in demand dynamics within the healthcare sector .
Partnerships with educational institutions for talent sourcing
Cross Country Healthcare collaborates with educational institutions to source talent for its staffing needs. These partnerships are crucial in ensuring a steady pipeline of qualified healthcare professionals. The company reported a significant decrease in average revenue per FTE per day in the Nurse and Allied Staffing segment, which fell to $373 in the third quarter of 2024 from $434 in the same quarter of 2023, representing a 14.1% decline .
The partnerships with educational institutions help mitigate the risk of talent shortages by providing training and internship opportunities, thereby aligning the workforce supply with market demands .
Alliances with technology providers for staffing solutions
Cross Country Healthcare has formed alliances with technology providers to enhance its staffing solutions. This includes investments in software and platforms that streamline the recruitment and management of healthcare professionals. The company's investment in technology is reflected in its operational expenses, which included $54.3 million in selling, general, and administrative expenses for the three months ended September 30, 2024, a decrease from $69.6 million in the same period in 2023 .
The overall operational strategy is aimed at leveraging technology to improve efficiency and responsiveness to client needs, particularly in a competitive staffing environment .
| Partnership Type | Description | Impact on Revenue/Performance |
|---|---|---|
| Healthcare Facilities | Collaboration with various healthcare facilities for staffing | Revenue decreased to $1.034 billion in 2024 from $1.606 billion in 2023 |
| Educational Institutions | Partnerships for sourcing talent and providing training | Average revenue per FTE per day fell to $373 in 2024 from $434 in 2023 |
| Technology Providers | Alliances to enhance staffing solutions through technology | Operational expenses decreased to $54.3 million in Q3 2024 from $69.6 million in Q3 2023 |
Cross Country Healthcare, Inc. (CCRN) - Business Model: Key Activities
Staffing and recruitment services
Cross Country Healthcare, Inc. (CCRN) primarily operates in the staffing sector, focusing on providing nurse and allied staffing services. For the three months ended September 30, 2024, the revenue from nurse and allied staffing was $264.9 million, a decrease of 33.2% compared to $396.6 million for the same period in 2023. This decline is attributed to a 22.2% decrease in the number of full-time equivalents (FTEs) on assignment, which fell to 7,660 from 9,849 year-over-year.
The average revenue per FTE per day for nurse and allied staffing was reported at $373 for the three months ended September 30, 2024, down from $434 in the previous year, reflecting a decline of 14.1%.
Providing managed service programs (MSPs)
Managed service programs (MSPs) are a critical component of Cross Country Healthcare's service offerings. These programs streamline the procurement of contingent labor for healthcare facilities. The Physician Staffing segment reported revenue of $50.3 million for the three months ended September 30, 2024, which is a 10.0% increase from $45.7 million for the same period in 2023. This increase is largely due to a 6.2% rise in billable days filled.
The contribution income for the Physician Staffing segment reached $4.6 million in Q3 2024, compared to $2.6 million in the same quarter of 2023, demonstrating an improvement in profitability.
Developing proprietary technology solutions like Intellify®
Cross Country Healthcare has invested in proprietary technology solutions, including its vendor management system, Intellify®. This platform enhances operational efficiency by managing staffing needs and automating various processes. As of September 30, 2024, the overall revenue from services was $315.1 million, down from $442.3 million year-over-year, primarily due to declines in travel nurse and allied staffing.
Furthermore, the company has reported a significant focus on technology integration to improve staffing solutions and client service delivery. As of Q3 2024, the contribution margins for nurse and allied staffing services decreased to 7.3%, down from 9.9% in the same period in 2023.
| Key Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue from Nurse and Allied Staffing | $264.9 million | $396.6 million | -33.2% |
| Average Revenue per FTE per Day | $373 | $434 | -14.1% |
| Revenue from Physician Staffing | $50.3 million | $45.7 million | +10.0% |
| Contribution Income (Physician Staffing) | $4.6 million | $2.6 million | +76.9% |
| Overall Revenue from Services | $315.1 million | $442.3 million | -28.8% |
Cross Country Healthcare, Inc. (CCRN) - Business Model: Key Resources
Skilled workforce, including nurses and allied professionals
The workforce at Cross Country Healthcare, Inc. includes approximately 7,660 full-time equivalents (FTEs) in the Nurse and Allied Staffing segment as of September 30, 2024, down from 9,849 FTEs in the prior year, reflecting a decrease of 22.2%. The average revenue per FTE per day for Nurse and Allied Staffing has also seen a decline, dropping to $373 from $434 year-over-year, a reduction of 14.1%.
Proprietary staffing technology and systems
Cross Country Healthcare utilizes proprietary staffing technology that aids in optimizing the placement of healthcare professionals. This technology is essential for managing the logistics of staffing in a highly competitive market. The company also reported a significant decrease in direct operating expenses to $821.8 million for the nine months ended September 30, 2024, down from $1.2 billion in the same period of the previous year, reflecting improved efficiency in operations.
Strong brand reputation in healthcare staffing
Cross Country Healthcare has established a strong brand reputation in the healthcare staffing industry. As of September 30, 2024, the company's total revenue from services was $1.034 billion, a decrease of 35.6% compared to $1.606 billion in the same period in 2023. Despite the decline in overall revenue, the Physician Staffing segment saw an increase in revenue of 10.8%, indicating resilience in certain areas of the business.
| Key Metrics | September 30, 2024 | September 30, 2023 | Change (%) |
|---|---|---|---|
| FTEs in Nurse and Allied Staffing | 7,660 | 9,849 | -22.2% |
| Average Revenue per FTE per Day (Nurse and Allied Staffing) | $373 | $434 | -14.1% |
| Total Revenue from Services | $1.034 billion | $1.606 billion | -35.6% |
| Physician Staffing Revenue | $145.6 million | $131.4 million | +10.8% |
| Direct Operating Expenses | $821.8 million | $1.245 billion | -34.0% |
Cross Country Healthcare, Inc. (CCRN) - Business Model: Value Propositions
Comprehensive staffing solutions tailored to healthcare providers
Cross Country Healthcare, Inc. (CCRN) offers extensive staffing solutions that cater specifically to the needs of healthcare providers. As of September 30, 2024, the company reported a total revenue of $315.1 million, a decline of 28.8% year-over-year from $442.3 million in the same quarter of 2023. This drop was primarily attributed to reduced demand in the Nurse and Allied Staffing segment, which generated $264.9 million in revenue for the same period, down from $396.6 million in the prior year.
The Nurse and Allied Staffing segment saw a 22.2% decrease in full-time equivalents (FTEs), with 7,660 FTEs reported compared to 9,849 the previous year. The average revenue per FTE per day also fell to $373, down from $434, reflecting a 14.1% decrease. In contrast, the Physician Staffing segment experienced growth, with revenue increasing 10.8% to $145.6 million.
Enhanced operational efficiency through technology integration
Cross Country Healthcare focuses on integrating advanced technology into its operations to enhance efficiency. This integration aims to streamline processes and improve service delivery. The company reported a decrease in direct operating expenses to $250.9 million for the three months ended September 30, 2024, down from $344.9 million in the same period of 2023. This reduction represents a 27.2% decrease, indicating improved operational efficiency despite the decline in overall revenue.
The average days filled for Physician Staffing increased to 24,424, up 6.2% from 23,004 in the previous year. Revenue per day filled in this segment also improved to $2,058, compared to $1,986 in the prior year, indicating effective utilization of resources and enhanced operational capabilities.
Commitment to quality and continuity of care
Cross Country Healthcare emphasizes a strong commitment to quality and continuity of care, which is crucial in the healthcare staffing industry. The company’s focus on maintaining high standards has been reflected in its contribution income, which, despite overall revenue declines, remained positive in the Physician Staffing segment, with contribution income of $11.8 million for the nine months ended September 30, 2024, compared to $7.8 million for the same period in 2023.
As of September 30, 2024, the company had cash and cash equivalents totaling $64.0 million, providing a solid liquidity position to support its commitment to quality care. The company also reported a decrease in corporate overhead to $51.3 million for the nine months ended September 30, 2024, down from $54.0 million in the prior year, reflecting effective cost management while maintaining service quality.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $315.1 million | $442.3 million | -28.8% |
| Nurse and Allied Staffing Revenue | $264.9 million | $396.6 million | -33.2% |
| Physician Staffing Revenue | $50.3 million | $45.7 million | +10.8% |
| Average Revenue per FTE per Day (Nurse) | $373 | $434 | -14.1% |
| Days Filled (Physician Staffing) | 24,424 | 23,004 | +6.2% |
| Revenue per Day Filled (Physician Staffing) | $2,058 | $1,986 | +3.6% |
| Contribution Income (Physician Staffing) | $11.8 million | $7.8 million | +51.3% |
| Cash and Cash Equivalents | $64.0 million | N/A | N/A |
| Corporate Overhead | $51.3 million | $54.0 million | -5.0% |
Cross Country Healthcare, Inc. (CCRN) - Business Model: Customer Relationships
Dedicated account management for personalized service
Cross Country Healthcare, Inc. (CCRN) employs dedicated account managers to provide personalized service to its clients, ensuring tailored solutions that meet specific staffing needs. This approach allows CCRN to build strong relationships with healthcare facilities, enhancing customer loyalty and satisfaction.
Continuous support and communication with clients
CCRN emphasizes continuous support and communication with its clients. The company maintains regular contact through scheduled check-ins and feedback sessions. For the nine months ended September 30, 2024, CCRN reported total revenue from services of $1.0 billion, reflecting its commitment to client engagement and service quality.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue from Nurse and Allied Staffing | $264.9 million | $396.6 million | -33.2% |
| Revenue from Physician Staffing | $50.3 million | $45.7 million | +10.0% |
| Total Revenue | $315.1 million | $442.3 million | -28.8% |
| Contribution Income from Nurse and Allied Staffing | $19.3 million | $39.2 million | -50.9% |
| Contribution Income from Physician Staffing | $4.6 million | $2.6 million | +76.9% |
Feedback mechanisms to improve service delivery
Feedback mechanisms are integral to CCRN's strategy for enhancing service delivery. The company actively solicits feedback from clients, using it to refine and improve its staffing solutions. In the nine months ended September 30, 2024, CCRN reported a credit loss expense of $21.7 million, primarily due to a bankruptcy filing by a large customer, which highlighted the importance of client assessments and proactive risk management.
Cross Country Healthcare, Inc. (CCRN) - Business Model: Channels
Direct sales teams targeting healthcare organizations
Cross Country Healthcare, Inc. employs specialized direct sales teams that focus on healthcare organizations, including hospitals and clinics. These teams are essential for establishing relationships and understanding the specific staffing needs of clients. In the third quarter of 2024, the company reported revenue from services amounting to $315.1 million, down from $442.3 million in the same quarter of 2023, reflecting a shift in demand across their service offerings.
Online platforms for job postings and talent acquisition
The company utilizes online platforms for job postings and talent acquisition, enhancing its reach to potential candidates. The Nurse and Allied Staffing revenue decreased to $264.9 million for the three months ended September 30, 2024, from $396.6 million in the same period of 2023, indicating challenges in filling positions amidst changing market dynamics. The average revenue per full-time equivalent (FTE) per day in this segment was reported at $373, down from $434 year-over-year.
Networking events and industry conferences
Networking events and industry conferences play a crucial role in Cross Country Healthcare's strategy to connect with potential clients and candidates. In the nine months ended September 30, 2024, the company filled a total of 72,461 days, compared to 68,927 in the prior year, which shows an increase in engagement through these channels. The Physician Staffing segment reported a revenue increase to $145.6 million for the same period, up from $131.4 million, driven by a higher number of billable days.
| Channel Type | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) | Days Filled (9 Months 2024) | Days Filled (9 Months 2023) |
|---|---|---|---|---|---|
| Direct Sales Teams | $315.1 million | $442.3 million | -28.8% | 72,461 | 68,927 |
| Online Platforms | $264.9 million | $396.6 million | -33.2% | N/A | N/A |
| Networking Events | $145.6 million | $131.4 million | +10.0% | N/A | N/A |
Cross Country Healthcare, Inc. (CCRN) - Business Model: Customer Segments
Hospitals and healthcare systems
Cross Country Healthcare, Inc. (CCRN) provides staffing solutions primarily to hospitals and healthcare systems across the United States. As of September 30, 2024, the Nurse and Allied Staffing segment generated revenue of $264.9 million, a decrease of 33.2% compared to $396.6 million for the same period in 2023. The average number of full-time equivalents (FTEs) on contract during this period was 7,660, down 22.2% from 9,849 in the prior year. The average revenue per FTE per day was $373, reflecting a 14.1% decline from $434.
Government facilities and managed care organizations
Cross Country Healthcare also serves government facilities and managed care organizations. The Physician Staffing segment, which represents approximately 16% of total revenue, provided services amounting to $50.3 million for the three months ended September 30, 2024, an increase of 10.0% from $45.7 million in the same period in 2023. The number of days filled in Physician Staffing reached 24,424, compared to 23,004 in the previous year, indicating a 6.2% increase. Revenue per day filled was $2,058, up from $1,986.
Educational institutions and non-acute care providers
CCRN also caters to educational institutions and non-acute care providers. The revenue from educational staffing solutions has been growing, with the Homecare Staffing segment showing a year-over-year revenue growth of 13.1%. The company continues to expand its reach into non-acute care facilities, further diversifying its customer segments. Overall, the total revenue from all services for the nine months ended September 30, 2024, was $1.0 billion, a decrease of 35.6% compared to $1.6 billion for the same period in 2023.
| Customer Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | FTEs (Q3 2024) | FTEs (Q3 2023) | Days Filled (Physician Staffing Q3 2024) | Days Filled (Physician Staffing Q3 2023) |
|---|---|---|---|---|---|---|
| Hospitals and Healthcare Systems | $264.9 million | $396.6 million | 7,660 | 9,849 | N/A | N/A |
| Government Facilities and Managed Care Organizations | $50.3 million | $45.7 million | N/A | N/A | 24,424 | 23,004 |
| Educational Institutions and Non-Acute Care Providers | N/A | N/A | N/A | N/A | N/A | N/A |
Cross Country Healthcare, Inc. (CCRN) - Business Model: Cost Structure
Operational expenses associated with staffing services
For the nine months ended September 30, 2024, Cross Country Healthcare reported direct operating expenses of $821.8 million, a decrease of 34.0% from $1.245 billion in the same period of 2023. This decline was primarily attributed to a reduction in revenue from services, which fell to $1.034 billion from $1.606 billion.
Direct operating expenses consist mainly of:
- Field employee compensation
- Independent contractor expenses
- Housing expenses
- Travel expenses
- Related insurance expenses
As a percentage of total revenue, direct operating expenses increased to 79.5% for the nine months ended September 30, 2024, compared to 77.6% for the prior year.
Technology development and maintenance costs
Cross Country Healthcare's technology costs are primarily reflected in their corporate overhead, which was $51.3 million for the nine months ended September 30, 2024, compared to $54.0 million for the same period in 2023. This decrease was driven by lower compensation and benefit expenses, as well as reduced software and hardware costs. The technology-related expenses are part of the broader corporate overhead that includes finance, IT, legal, human resources, and marketing costs.
For the three months ended September 30, 2024, corporate overhead was $15.5 million, down from $16.4 million in the prior year, reflecting ongoing cost management efforts.
Marketing and sales expenses to acquire clients
Marketing and sales expenses are included in selling, general, and administrative expenses, which totaled $177.8 million for the nine months ended September 30, 2024, a decrease of 23.6% from $232.8 million for the same period in 2023. This reduction was largely due to proactive cost management and decreased compensation and benefit expenses.
For the three months ended September 30, 2024, selling, general, and administrative expenses were $54.3 million, down from $69.6 million in the prior year. As a percentage of total revenue, these expenses increased to 17.2% for the three months ended September 30, 2024, compared to 15.7% in the prior year.
| Cost Category | Amount (9M 2024) | Amount (9M 2023) | Change (%) |
|---|---|---|---|
| Direct Operating Expenses | $821.8 million | $1.245 billion | -34.0% |
| Corporate Overhead | $51.3 million | $54.0 million | -5.0% |
| Selling, General and Administrative Expenses | $177.8 million | $232.8 million | -23.6% |
Credit loss expense for the nine months ended September 30, 2024, was $21.7 million, up from $10.4 million in the prior year. This increase was primarily driven by a bankruptcy filing from a single large customer.
Cross Country Healthcare, Inc. (CCRN) - Business Model: Revenue Streams
Fees from staffing services (temporary and permanent placements)
For the nine months ended September 30, 2024, Cross Country Healthcare, Inc. reported revenue from staffing services amounting to:
| Segment | Revenue (in thousands) |
|---|---|
| Nurse and Allied Staffing | $888,490 |
| Physician Staffing | $145,574 |
| Total Revenue from Staffing Services | $1,034,064 |
This represents a decrease of 35.6% compared to $1,605,693 in the nine months ended September 30, 2023. The decline is attributed to lower demand for temporary staffing and a reduction in the average bill rates.
Subscription fees for technology solutions
Cross Country Healthcare offers a SaaS-based proprietary technology solution, Intellify®, which provides vendor management services. As of September 30, 2024, the revenue generated from technology solutions is included within the broader segment revenue but has not been explicitly broken out in the financial reports. However, it is an integral part of their service offerings, aimed at increasing efficiency in staffing management.
Consulting and advisory services related to staffing needs
Cross Country Healthcare also provides consulting and advisory services to healthcare facilities, focusing on optimizing staffing solutions. The revenue from consulting services is included in the 'Other Services' category, which reported:
| Segment | Revenue (in thousands) |
|---|---|
| Other Services (Nurse and Allied Staffing) | $23,980 |
| Other Services (Physician Staffing) | $7,401 |
| Total Revenue from Other Services | $31,381 |
This figure reflects the overall contribution of consulting services to the total revenue, with the overall revenue from other services decreasing from $43,470 in the previous year.
Updated on 16 Nov 2024
Resources:
- Cross Country Healthcare, Inc. (CCRN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cross Country Healthcare, Inc. (CCRN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cross Country Healthcare, Inc. (CCRN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.