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ASA Files Comments on ACA Employer Regulations

ASA has submitted comments on proposed employer regulations under the Affordable Care Act. The proposed regulations were issued Dec. 28 by the U.S. Department of the Treasury and the U.S. Internal Revenue Service. The association’s comments, which were filed March 18, make several recommendations for how to clarify the obligations of staffing firms under the proposed “look-back measurement method” for determining employees’ full-time status. Among the recommendations is a proposed safe harbor under which certain employees who are assigned by employers with unusually high employee turnover would be presumed to be “variable hour” employees eligible for look-back treatment.

Comments on the proposed regulations also were filed by the Employers for Flexibility in Health Care (E-Flex) coalition, which ASA and other major business groups formed in 2011 to represent employers of part-time, temporary, and seasonal employees in the rule-making process.

A public hearing on the proposed regulations is scheduled for April 23 in Washington, DC. ASA and other members of the E-Flex coalition will attend the hearing. You can read the ASA and E-Flex comments at americanstaffing.net.

Health care reform is the topic of a can’t-miss session at the 2013 ASA Staffing Law Conference, May 7–8 in Washington, DC. Only a few seats remain—if you have not yet registered for this event, visit americanstaffing.net.

Cross Country Healthcare Reports Fourth Quarter and Full Year 2012 Results

Cross Country Healthcare Inc. News Release (03/18/13)

Cross Country Healthcare Inc. on March 18 reported results for the fourth quarter and full year ended Dec. 31, 2012. Consolidated revenue from continuing operations for the fourth quarter of 2012 was $111.7 million, an increase of 3% from the prior year quarter, but a slight decrease sequentially from the third quarter of 2012. Including discontinued operations, the company incurred a net loss in the fourth quarter of 2012 of $9.5 million. Loss from continuing operations before income taxes was $1.3 million, including a $0.8 million charge recognized in the fourth quarter for a professional liability indemnity claim in the nurse and allied staffing business. Loss from continuing operations after taxes was $3.0 million. In the same quarter of the prior year, Cross Country had net loss from continuing operations of $0.2 million, while net income including discontinued operations was $0.5 million.

For the full year 2012, consolidated revenue from continuing operations was $442.6 million, an increase of 1% from the prior year. Including discontinued operations, the company had a net loss of $42.2 million. Loss from continuing operations before income taxes was $26.9 million. Loss from continuing operations was $20.7 million. For the full year 2011, net income was $4.1 million.

New MainStream Capital and Starpoint Solutions to Begin Acquisitions

New Mainstream Capital News Release (03/19/13)

Private equity firm New MainStream Capital and information technology staffing firm Starpoint Solutions LLC announced March 14 a strategic agreement to acquire IT and professional sector staffing companies with revenues of $25 million to $100 million. NMS and Starpoint will work together to identify and assess acquisition opportunities, and NMS will provide equity capital to support acquisition, integration, and growth of the combined companies.

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