TICKER CCRN
ISIN US2274831047
Market cap. USD
277,804,393
Shs outstanding 32,759,952
Cross Country Healthcare, Inc. provides talent management and other consultative services for healthcare clients in the United States. The company operates in two segments, Nurse and Allied Staffing and Physician Staffing. The Nurse and Allied Staffing segment offers traditional staffing, including temporary and permanent placement of travel nurses and allied professionals, local nurses, and allied staffing; staffing solutions for registered nurses, licensed practical nurses, certified nurse assistants, practitioners, pharmacists, and other allied professionals on per diem and short-term assignments; and clinical and non-clinical professionals on long-term contract assignments, as well as workforce solutions, including MSP, RPO, and consulting services. It also provides retained search services for healthcare professionals, as well as contingent search and recruitment process outsourcing services. This segment serves public and private acute care and non-acute care hospitals, government facilities, local and national healthcare plans, managed care providers, public and charter schools, outpatient clinics, ambulatory care facilities, physician practice groups, and other healthcare providers under the Cross Country brand. The Physician Staffing segment provides physicians in various specialties, certified registered nurse anesthetists, nurse practitioners, and physician assistants under the Cross Country Locums brand as independent contractors on temporary assignments at various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The company was founded in 1986 and is headquartered in Boca Raton, Florida.
Return at exit: -20.8%
Market decline amid healthcare staffing headwinds
• Cross Country Healthcare was rotated out of our strategy due to relative underperformance amid healthcare staffing market challenges. • Market performance has significantly lagged, with the stock down 55.4% over the past year and posting declines across all timeframes (-41.18% over 3 months). • Revenue continues to contract (-22.14% year-over-year) with operating margin compressed to just 0.38%, reflecting post-pandemic normalization in healthcare staffing. • Recent developments have increased volatility, including December’s terminated Aya Healthcare merger and subsequent leadership change with co-founder Kevin Clark returning as CEO. • The company maintains some strengths, including a debt-free balance sheet with ~$70 million cash and planned share repurchases under its $40 million authorization. This change reflects portfolio rotation, not a sell signal.