American Staffing Association (03/05/15) Edward A. Lenz

The U.S. Supreme Court heard oral arguments yesterday in the case of King v. Burwell—the most serious challenge to the ACA since the court’s 2012 decision upholding the constitutionality of the “individual mandate” requiring most U.S. citizens to buy health insurance or pay a penalty.

The current challenge involves a narrower issue involving the authority of health care exchanges established under the ACA to grant subsidies, in the form of premium tax credits, to certain individuals who buy health insurance on such exchanges. ASA’s senior counsel attended yesterday’s hearing.

Some ACA opponents may relish the prospect of irreparable damage to the law if the court disallows federal exchange subsidies, but most observers believe that would be a mistake. The Supreme Court is expected to issue its decision before the court’s term ends this summer.

Cross Country Healthcare Inc. News Release (03/04/15)

Cross Country Healthcare Inc. reported revenues of $188.1 million in the fourth quarter of 2014, up 72% from $109.2 million in the fourth quarter of 2013, and $617.8 million for all of 2014, up 41% from $438.3 million in 2013. The company reported a net loss of $20.2 million for the fourth quarter, compared with a net loss of $52.6 million in the year-ago quarter, and a net loss of $31.8 million for the year, compared with a net loss of $52 million in 2013.The company recorded just over $20 million in impairment, restructuring, acquisition, and integration costs, and changes in fair value of convertible note derivative liability, in the quarter.

By segment, fourth-quarter revenue totaled $146.7 million for nurse and allied health care staffing, up 111.8% from $69.3 million in the year-ago quarter, and $31 million for physician staffing, up 0.6% from $30.8 million. For the year, revenue totaled $457 million for nurse and allied health care staffing, up 68.3% from $271.6 million in 2013, and $123.3 million for physician staffing, down 4.3% from $128.8 million.

RCM Technologies News Release (03/04/2015)

RCM Technologies Inc. reported revenues of $49.3 million for the fourth quarter of 2014, up 7.5% from $45.8 million during the fourth quarter of 2013, and $193.8 million for all of 2014, up 13.5% from $170.8 million in 2013. Net income totaled $1.7 million in the 2014 fourth quarter, compared with a net loss of $1.6 million in the year-ago quarter, and $6.8 million for the year, compared with net income of $2 million in 2013.

By segment, fourth quarter revenue totaled $24.1 million for engineering, up 2.6% from $23.5 million from the 2013 fourth quarter; $15.1 million for information technology, up 8.6% from $13.9 million; and $10.1 million for specialty health care, up 18.8% from $8.5 million. For all of 2014, revenue totaled $99.7 million for engineering, up 15% from $86.7 million in 2013; $59.2 million for information technology, up 7% from $55.3 million; and $34.8 million for specialty health care, up 20.8% from $28.8 million.

American Staffing Association (03/05/15) Cynthia Poole

Economic activity continued to expand from early January through mid-February, according to the Federal Reserve Board’s latest report on regional economies (known as the “beige book”). Employment levels remained stable or continued to grow in most districts and across a variety of sectors. Contacts in several districts noted strong labor demand and challenges filling a variety of skilled positions. Staffing firms reported mixed demand, with some noting difficulty finding workers to fill orders, in part due to inclement weather. Wage pressures were moderate across most of the country, but contacts in some districts reported increased wages to attract skilled workers for difficult-to-fill positions.

Bloomberg (03/05/15) Victoria Stilwell

The number of people applying for unemployment benefits in the week ended Feb. 28 rose by 7,000 to 320,000—the biggest increase since May—according to the U.S. Department of Labor. The 52 economists surveyed by Bloomberg had forecast claims of 295,000.

Wall Street Journal (03/04/15) Kathleen Madigan

The Institute for Supply Management’s nonmanufacturing purchasing managers index was 56.9 last month, up from 56.7 in January and 56.5 in December. Experts polled by the Wall Street Journal had forecast a reading of 56.2. The employment index went up to 56.4 from 51.6 in January, and the new orders index dropped to 56.7 from 59.5.

“The report bodes well for nonmanufacturing,” said Anthony Nieves, who oversees the ISM survey.