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TWST: Please begin with a brief historical sketch of the company and a picture
of the things you are doing right now.
Mr. Boshart: Cross Country was founded in South Florida about 20 years ago. Its
origins were in what is today known as travel nursing, which involved placing
nurses on contracts, typically lasting 13 weeks in duration, at hospitals
throughout the country. The centralized recruitment model does not require
bricks and mortar facilities in all the markets that we serve; we historically
have served the majority of our clients out of one facility. As we have made
acquisitions over the years, we have maintained the core location to allow the
employees, the key assets of the acquisitions that we have made, to continue
with Cross Country and continue to grow the business going forward.
The company has extended its service offerings over the years to beyond the core
travel nursing business to per diem nurses, which is more of a traditional
bricks and mortar local service delivery model on a day-to-day basis. A little
less than 10% of our revenue today is derived from per diem nursing services. We
are also in clinical trial staffing services. The traditional travel and per
diem nursing that we provide is directed almost entirely toward the acute care
hospitals, roughly 6,000 acute care hospitals throughout the country of which at
any given time we are servicing a thousand -or one out of six hospitals in the
country. Our clinical trials business, which as of today (as we have consummated
today an acquisition in the clinical trials area) is a little less than 10% of
revenue as well, focuses primarily on pharmaceutical companies, biotech
companies, medical device companies, going through the FDA's pharmaceutical and
device approval process. It is a very different client base but we find the
opportunity in this market very exciting looking forward.
One other staffing service we offer is Allied Health Staffing, which is also, as
our nursing businesses, focused primarily on acute care hospitals, although is a
little more diverse in its client base, providing Allied Health services to
skilled nursing facilities, school districts, and other outpatient facilities
throughout the country.
In the non-staffing area, we have two primary service delivery offerings. One is
education and training, primarily one-day seminars throughout the country. We
offer more than 5,000 seminars each year. In addition, we provide retained
physician and healthcare executive search services. So the company has grown
from, at the time I joined it in 1993, roughly a $66 million revenue company to
last year, we did approximately $645 million in revenue. So it is a
substantially larger enterprise. The healthcare-staffing segment is certainly a
more attractive area than it was and a more consolidated market than it was when
I joined this industry roughly 13 years ago. We remain very excited about its
future and we think there is more opportunity for us to expand our service
offerings that we offer today as well as to grow organically in the areas that
we currently provide service.
Tickers included in this excerpt: CCRN
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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