AMN Healthcare Services Inc at Bank of America Global Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kevin Fischbeck - Bank of America Securities - Analyst : I would just love to start off with maybe giving the lay of the land. There's been a huge spike in demand and bill rates during COVID, and now things are starting to normalize. Where are we in that process? Where do you think demand is? Where do you think it's going to be trending? Where do you think pricing is? How much more do we have to go for normalization there?

Question: Kevin Fischbeck - Bank of America Securities - Analyst : By all means, yeah.

Question: Kevin Fischbeck - Bank of America Securities - Analyst : Yes, I guess when you think about that, you mentioned some signs on your call about Q2 is coming in lower than you thought, but you are seeing signs that demand is starting to come up. So you talk about what those trends have been more recently and why they are going to persist or how long it takes to get back to where you thought you were going to be.

Question: Kevin Fischbeck - Bank of America Securities - Analyst : Yeah, and so I guess when we think about that, that volume to price with Q3, where do we bottom on it from a price perspective and how do you get comfort that I think that some of the concerns people have is that, okay, we get to Q4 run rate, but then is there another leg to drop in 2024?

Question: Kevin Fischbeck - Bank of America Securities - Analyst : Yeah, so at this point it's still kind of that supply shortage is going to be the thing that means you can't really go much lower than there. How do you think about the Q4 number? Because I think you're still talking about 30%, 35% kind of above the 2019 levels at that point. And I guess that's whatever, a 70% CAGR off of 2019. When we think about bill rates, we kind of think about there's a spread for nurse staffing versus core wage growth. I don't know. You tell me if you've got better data, but it kind of feels to me like core wage growth has been more like [5.6] rather than [7.8], but like that argues that maybe there is a little bit more to come. I mean, how did you guys think about that number? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 10, 2023 / 5:40PM, AMN.N - AMN Healthcare Services Inc at Bank of America Global Healthcare Conference

Question: Kevin Fischbeck - Bank of America Securities - Analyst : Okay. No, that makes sense. And so I guess one of the other things that has happened because of COVID is that we're at least hearing anecdotally that systems are looking for new options. They struggled under COVID, and now they're saying, is there a better way? So how are you positioning yourself to deal with that?

Question: Kevin Fischbeck - Bank of America Securities - Analyst : I was talking to one private staffing company who said the worst position to be in during COVID was to be an MSP provider because it was almost impossible to service the demand that was going on. So, I mean, like, did the customers realize that? When they're looking to switch, are they just switching models but still using you predominantly as the backbone of that model, or are they looking to switch vendors? And how do you think about new business wins? Because anytime people are looking, it creates re-procurement risk, but it also creates opportunities. So how are you thinking about the net of those things?

Question: Kevin Fischbeck - Bank of America Securities - Analyst : Yeah, so I guess it's interesting, because a lot of companies talk about that, where you might lose a contract, but you're still a main supplier. But does that make winning new contracts less valuable, too? Because the incumbent from there, or when you win a contract, you're actually able to shift more of that business to you quicker than someone else who you might lose that contract to. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 10, 2023 / 5:40PM, AMN.N - AMN Healthcare Services Inc at Bank of America Global Healthcare Conference

Question: Kevin Fischbeck - Bank of America Securities - Analyst : So I guess one of the things from the outside looking in, from a disclosure perspective, you give us the bill rates, you give us the people on assignment, it's hard to tell from the outside how much of that is customer demand versus like new contract wins versus contract losses. So when you guys -- your $4 billion of revenue number, that's a little bit lower than what you were guiding to before. Is that entirely due to just the macro bill rate, macro demand, or is there anything going on there as far as contract wins, contract losses in there as well?

Question: Kevin Fischbeck - Bank of America Securities - Analyst : All right. And then, Cary, you mentioned five years -- five months on the job.

Question: Kevin Fischbeck - Bank of America Securities - Analyst : Yeah, already it does. This conference is just making me age really quickly. So if you could maybe talk a little bit about kind of what you've seen as the opportunity to be announced, the number of hires, so, like, what initiatives are you focused on right now?

Question: Kevin Fischbeck - Bank of America Securities - Analyst : You talked a number of times about the solution set that you have. These are 20 services, and MSP has usually nine, it sounds like. How do those work together? When you go and you cross-sell, is it I can sell you 20 different point solutions, or is there an argument that once we bring in four, it's better than having four different solutions? Are you bringing more to the table than just 20 different options?

Question: Kevin Fischbeck - Bank of America Securities - Analyst : What is that business opportunity? Is there a way to quantify that, that if you can increase cross-sell by 10% or that adds X amount of revenue? Because I would assume the biggest revenue component is going to be the nurse and allied staffing component. When you go from that as your core two or three solutions to seven, how do we quantify what that looks like?

Question: Kevin Fischbeck - Bank of America Securities - Analyst : I guess when you talk about that, is that mostly the translation business or what are the components within that that are the best growing?

Question: Kevin Fischbeck - Bank of America Securities - Analyst : That business had really strong growth in the quarter, so pretty impressive what you've been able to do there. What's driving it? Is it really just cross-sell or are you selling it to customers where you don't have a relationship outside of the --

Question: Kevin Fischbeck - Bank of America Securities - Analyst : Maybe just last question is about the recession and how you guys think about -- right now, it feels like a mass recession. Is that a headwind to these numbers that you're talking about as far as bill rates in Q4 and the ability to grow in 2024? Would it have to be a bigger recession before that was an issue and how do you think about growth during a recession?

Question: Kevin Fischbeck - Bank of America Securities - Analyst : All right, great. That's all we have time for. Thank you very much.