Healthcare staffing firm Cross Country Healthcare, Boca Raton, Fla., announced fourth-quarter losses of $161.3 milliondespite doing record-breaking business for the period and the year ended Dec. 31, 2008.
For 2008, Cross Country was paid $734.2 million for its services, a 2% increase from 2007s revenue total of just under $718.3 million, but still ended the year $142.9 million in the red. For the fourth quarter, it took in $205.9 million, which was 13% higher than last years $181.7 million.
For the last quarter of 2008, physician-staffing business brought in revenue of $45.7 million and net revenue of $4.8 million. For the year, the unit brought in revenue of $56.6 million and net revenue of $5.7 million. The company acquired locum tenens firm Medical Doctors Associates in September 2008.
The company linked the loss to a goodwill impairment charge resulting from a combination of depressed equity values and lower projected growth rates for its nurse and allied staffing business. If this charge were excluded, the company reports that it would have ended the year $24 million in the black.
The companys nurse staffing segments problems were exacerbated by the weak economy, said Joseph Boshart, Cross County president and chief executive officer, in a news release, as staff nurses work longer hours to bolster their own household income and lessen the need for other nurses. To make up for the losses, Boshart said that steps will be taken, including reducing employee headcount and reducing advertising spending.