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Obama Win Assures Survival of Health Care Reform

President Obama’s decisive victory in the 2012 presidential election means that few, if any, major policy shifts are likely to occur in the next four years. A key question is whether the federal government can produce any significant accomplishments during that time. This will largely depend on whether the president can forge a consensus with Republicans in Congress following one of the most contentious political campaigns in recent memory.

An immediate test for all parties will be to address the daunting economic and political challenges presented by the “fiscal cliff,” which calls for automatic steep tax increases and across-the-board spending cuts beginning Jan. 1, 2013, unless a compromise is reached. If the issues can’t be resolved in the upcoming lame duck session of Congress, they surely will dominate the legislative agenda in the early months of the president’s second term.

It’s clear that implementation of the Affordable Care Act will move forward. For employers, this means that, effective Jan. 1, 2014, they will have to either offer qualified health insurance to their full-time employees or pay penalties if even one employee receives government assistance to buy health coverage through a state health exchange. Fortunately, ASA and its coalition allies were successful in persuading the Obama administration to allow employers with “variable hour” employees to use a “look-back” period of up to 12 months to determine whether those employees have worked full-time for purposes of offering health coverage or paying penalties. The look-back is expected to substantially reduce staffing firms’ exposure to penalties for their temporary employees.

Attend an ASAPro Webinar Tuesday, Nov. 27, to learn about the latest developments on the Affordable Care Act—see below for more details.

Kelly Services Reports Third Quarter 2012 Results

Kelly Services News Release (11/07/12)

Kelly Services Inc. today announced results for the third quarter of 2012. Carl T. Camden, president and chief executive officer, announced revenue for the third quarter of 2012 totaled $1.4 billion, a 4% decrease compared with the corresponding quarter of 2011. Earnings from operations for the third quarter of 2012 totaled $24.0 million, compared with $22.1 million reported for the third quarter of 2011.

Commenting on the third quarter results in a challenging global economy, Camden stated, “We are very pleased that we were able to improve gross profit, keep expenses in line, and create leverage to improve our operating earnings by nearly 9% year-over-year, despite a deceleration in revenue.”

Cross Country Healthcare Reports Third Quarter Results

Cross Country Healthcare Inc. News Release (11/06/12)

Cross Country Healthcare Inc. on Nov. 6 reported revenue of $129.1 million in the third quarter ended Sept. 30, 2012, a decrease of 2% from the prior year quarter, but a 2% increase sequentially from the second quarter of 2012. The company incurred a net loss in the third quarter of 2012 of $17.6 million. Cash flow from operations for the third quarter of 2012 was $1.9 million.

The nurse and allied staffing business segment generated revenue of $69.8 million for the third quarter of 2012, reflecting a 5% decrease from the prior year quarter, but a 3% increase sequentially from the second quarter. The year-over-year decrease was due to lower staffing volume. The sequential increase was due to a combination of higher staffing volume and bill rates. Segment staffing volume decreased 5% from the prior year quarter, but increased 1% sequentially. Travel staffing volume decreased 3% year-over-year, but increased 1% sequentially while per diem staffing volume decreased 12% year-over-year, but increased 2% sequentially.

For the third quarter of 2012, the physician staffing business segment generated revenue of $32.7 million, an increase of 6% from both the prior year quarter and sequentially from the second quarter of 2012. Physician staffing days filled for the third quarter of 2012 was 22,647 days, a 1% decrease from the prior year quarter, but a 6% increase sequentially. Revenue per day filled for the third quarter of 2012 was $1,443, up 7% year-over-year and unchanged sequentially.

Source2 Earnings

Source2 News Release (11/06/12)

Source2 has reported results for its third quarter and for the nine months ended Sept. 30, 2012. For the third quarter, the company recorded gross revenue of $4,188,359, an 11% increase over the same quarter in 2011. Net income was $94,860, up 189% compared to $32,801 in the year-ago quarter. Source2 saw third quarter increases in net income and income per share. Gross profit, however, was unchanged from last year.

Drop in U.S. Job Openings Shows Uneven Labor Market

Bloomberg BusinessWeek (11/06/12) Alex Kowalski

Job openings declined to a five-month low in September, suggesting uneven forward momentum in the labor market may continue through the rest of the year. There were 3.56 million job openings, 100,000 fewer than in August, according to the U.S. Department of Labor. The slowing global economy and the possibility of federal tax increases next year have resulted in a reluctance to hire on the part of U.S. employers.

Much of the decrease in job openings was seen in professional and business services, government, and manufacturing. Job openings rose in education, health services, and in the trade, transportation, and utilities industries. Total firings, meanwhile, fell to 1.7 million from 1.85 million a month before.

Free ASAPro Webinar—Health Care Reform After the Election

How will the 2012 election results affect compliance with the Affordable Care Act? Find out during the ASAPro Webinar “Post-Election Health Care Reform Update” Tuesday, Nov. 27, 3–4:30 p.m. Eastern time. A panel of legal and staffing industry experts will discuss the status of the Affordable Care Act and the steps staffing firms can take to ensure their compliance with the law.

ASAPro Webinars are free for ASA members and qualify for continuing education hours toward ASA certification renewal. Register online at