AMN Healthcare Acquires Advanced | Nomadicare
When AMN Healthcare acquisitions occur with other travel therapy companies, it becomes spotlight news. Especially when the purchase price is $195 million!
The most recent AMN acquisition is Advanced Medical. And in Facebook groups, the energy in the air seems to be confusion. As far as healthcare companies go, Advanced is a well liked brand in the travel therapy circles. The initial reaction to an acquisition can feel scary, "Is this industry going to be just a big monopoly!?"
Let's take a look.
As AMN Healthcare Acquires Advanced - is that bad for travel therapy? What does this mean for us in the travel therapy industry?
AMN Acquisitions impact on Travel Therapy
Acquisitions are a fancy term for “buying.” When you hear that AMN has acquired a company, it means AMN has bought that company. Other terms you might hear when talking about acquisitions are merging or partnering.
It is not necessarily a bad thing, or a good thing. It is business and acquisitions are common in the travel therapy business. The reason AMN gets more attention is because it is the largest travel healthcare staffing agency. With every acquisition, AMN becomes larger.
Often, a company of this size makes strategic acquisitions. Maybe for more hospital relationships in a certain area. Or maybe a unique opportunity that the company has presented (more on this and Advanced Medical later).
This is similar to when I was in school as a therapy student. I worked at a St. Louis outpatient clinic, ProRehab. My role at ProRehab was a therapy aide, chatting up the sassy old ladies in my classic polo and khakis.
About two years into my role as a glorified laundry folder, a Chicago company named Athletico acquired ProRehab. This was my first experience with an acquisition.
My biggest take-away was seeing the impact that the acquisition had on the employees. The benefits changed, documentation system changed, and the feel went from locally owned & operated to large corporate chain.
Overall, the acquisition was not bad. However, it was different. Some therapists ended up leaving after the acquisition because of the change. Many stayed and changed with the company.
AMN Acquisitions: Who Does This Impact?
When AMN acquisitions occur, more are involved in the travel therapy industry than just AMN and Advanced Medical.
When AMN acquires a new company, they acquire all contracts that company has. This includes travel therapy contracts and the hospital contracts. So any Advanced Medical employees are now employees of AMN. This may look like a change in medical benefits or the name on the paycheck. Employees include travel therapists, recruiters, account managers, the leadership team, etc.
Any direct or exclusive hospital contracts owned by Advanced Medical, are now under new ownership of AMN with this acquisition.
AMN by any other name is...
Med Travelers or Club Staffing or NursesRx or Onward healthcare.
And now: Advanced!
During AMN acquisitions the travel company does not publicly change names. For this acquisition, Advanced will now be a brand of AMN. Travel therapists will still refer to the company as Advanced. This allows the reputation held by Advanced to be carried forward.
Guess how many brands AMN has now?
AMN Brands in Travel Nursing:
American Mobile Healthcare • Travel Nursing
NursesRx • Travel Nursing
Onward Healthcare • Travel Nursing
NurseChoice • Short-term, EMR Staffing
Nursefinders • Per Diem, Local Staffing
AMN Brands in Travel Therapy:
This is where the terms parent companies or sister companies come in. In this case, AMN is the parent company. Advanced Medical would now be a sister company of the other AMN brands, like Club Staffing and Med Travelers.
The more brands that AMN can acquire, the more hospital contracts they have. Many times as travelers we forget there are two sides to a staffing company and just like they want to attract us travelers, they also are working really hard to attract contracts from facilities. And trying to get the direct or exclusive contracts is the name of the game in 2019.
This is one reason a travel company takes it so seriously when a traveler cancels on a contract. On top of the cost of penalties, it's broken trust. A cancellation from enough travelers could cause a whole hospital system to no longer work with that company.
Advanced and Teletherapy
Advanced was one of the first in the travel therapy industry to begin staffing for teletherapy.
Innovations and new ideas can be incredibly valuable in a competitive business like travel therapy. A new and emerging market of teletherapy may have been part of the influence for the AMN acquisition. It's a great potential to get in with a pretty untouched market by others in the staffing healthcare industry.
AMN Acquisitions and MSPs
When larger staffing agencies, like AMN, acquire contracts with so many hospitals, they may not be able to fill all the hospitals needs with their own pool of travelers. But it's very important for them to keep those contracts and make those partners and facilities happy.
Many companies find themselves in this situation, whether from acquisitions, or from the hard work of building relationships, having sales team and finding exclusive contracts themselves. These companies will typically then form what is called a Managed Service Provider (MSP) and allow other staffing companies to submit their own travelers straight to their MSP in order to get access to those contracts.
The MSP will take a percentage of the bill rate before passing the remainder on to the other staffing agency. The average percentage of this in the travel therapy industry is 4-5%.
AMN Acquisitions | Tips for a Travel Therapist
Meet travel therapist, Chelsea.
Chelsea is a new grad traveler from the midwest. She is excited for hikes, crushing her student debt, and the soon-to-be pictures on her instagram. #nofilter
Chelsea did her research. She read the blogs about working with multiple companies and even asked all the right questions to get her Dream Team recruiters!
Good job, Chelsea!
However, if Chelsea unknowingly works with multiple brands of AMN, those brands will have access to the same jobs. So even though it may look like she is casting a wide net for those dream locations, each AMN brand has almost the exact same net. The big difference then comes to which recruiter can submit this traveler first.
Regardless of who gets Chelsea the job, AMN is still the employer.
What Do I Need to Know About AMN Acquisitions in the Travel Therapy Industry?
The most important thing to know as a travel therapist is not to work with multiple brands of the same company.
If you are a travel therapist for Advanced Medical, and working for another AMN brand, they will likely be sharing the same jobs very soon!
Needing an additional recruiter on your #dreamteam?
We custom match so you don’t have to worry about working with the same brands!