According to a recent report from AMN Healthcare, allied health professionals like therapists and radiology technologists have the potential to bring in millions of dollars annually for their facilities. The “2024 Allied Healthcare Professional Revenue and ROI Report” of the company tracks the net revenue, less the cost of staffing them on a contingent basis, generated by various kinds of radiology technologists and therapists.
A new report from AMN Healthcare, a provider of healthcare workforce solutions across the United States, claims that allied health professionals like radiology technologists and therapists can generate millions of dollars annually for their facilities.
The “2024 Allied Healthcare Professional Revenue and ROI Report” of the company tracks the net revenue, less the cost of staffing them on a contingent basis, generated by various kinds of radiology technologists and therapists. Here, the company’s key findings are made public in a written statement.
The Dallas, Texas-based company’s report this week says that of the 16 types of allied healthcare professionals in the data, cath lab technologists have the highest net annual revenue. The average annual revenue of catheter lab technologists is more than $2.8 million. They operate defibrillators and other equipment and provide crucial assistance during cardiac procedures. After deducting contingent labor costs, this amounts to $54,778 per week and $237,375 per month.
Michael Dennis, president of AMN Healthcare’s Allied Staffing Solutions division, stated, “Far from being a cost, they are an important, revenue driving asset.” He added, “Far from being a cost, they are an important, revenue driving asset.” “It is well known in the healthcare industry that physicians generate revenue through the services they provide, but allied healthcare professionals also can be significant contributors to the bottom line.”
According to the report, vascular sonographers generate the second most revenue among allied radiology professionals, with an annual average net revenue of $1,371,750. With an average annual net revenue of $1,275,090, nuclear medicine technologists come in third, followed by radiation therapists with an average annual net revenue of $1,000,275. With an average annual net revenue of $626,825, general radiology technologists, who typically take x-rays, come in at number five.
Dennis claims that allied radiology professionals also generate a significant amount of indirect revenue in addition to the direct revenue they generate.
Dennis stated, “Radiologists would not be able to do their jobs without allied radiology professionals to take diagnostic images such as X-rays, MRIs, CAT scans, and others.” When allied radiologists are either unavailable or in short supply, the revenue that radiologists generate can be lost or reduced.
By interpreting the diagnostic images taken by allied radiologists, radiologists alone bill commercial payors an average of more than $2 million annually, as stated in AMN Healthcare’s 2023 Physician Billing Report.
Additionally, the report tracks the revenue that is generated by speech language pathologists (SLPs), occupational therapists (PTs), and physical therapists (PTs), less the expenses associated with contingent staffing. For each of the three types of therapists, the average direct net annual revenue is $225,000. Dennis says that it is hard to figure out the indirect revenue that PTs, OTs, and SLPs make. This revenue could come from surgeries that require post-operative therapy.
Dennis stated, “Therapists, allied radiologists, and other types of allied healthcare professionals provide baseline services that can generate revenue on their own but are also necessary to generate revenue from other sources.”
The data used in the report come from a national database of annual billings for a variety of allied healthcare professionals, minus the daily cost of staffing contingent allied healthcare professionals based on the rates that are common. AMN Healthcare’s Revenue Cycle Solutions Division accessed and compiled the data cited in the report.
AMN Healthcare offers a comprehensive network of high-quality healthcare professionals as well as a suite of workforce technologies that are fully integrated and adaptable.
It says that nurses, doctors, allied health professionals, interpreters, and leaders are part of its extensive network of top-tier healthcare professionals. Additionally, the company offers a variety of employment options, facilitating organizations’ increased flexibility and assisting healthcare professionals throughout their careers.
AMN Healthcare Services Inc.’s outlook has been adjusted by BMO Capital Markets (NYSE: NYSE: AMN), a leading healthcare staffing company, by maintaining an Outperform rating on the stock and raising the price target from $60 to $71.
AMN Healthcare reported outcomes that were in line with analyst expectations, primarily due to efficient margin management. The market consensus was slightly lower than the company’s revenue guidance for the third quarter of 2024.
However, the benefits of the company’s cost management strategies were reflected in the forecast for adjusted EBITDA, a measure of profitability, which was higher than anticipated.
AMN Healthcare’s management team has stated that the net win/loss ratio has stabilized despite ongoing obstacles like the uncertain impact of winter orders. Since the ratio was negative the year before, this indicates that the company’s business pipeline has improved.
BMO Capital has raised its estimates for AMN Healthcare in response to these developments. The company’s confidence in its ability to overcome the market’s remaining weaknesses and capitalize on its cost management and operational improvements is reflected in the new price target of $71.
Despite a significant 37% decrease in revenue from the Nurse and Allied Solutions segment year over year, AMN’s first-quarter revenues of $821 million met market expectations.
Language Services and Physician and Leadership Solutions, on the other hand, experienced growth of 14% and 16%, respectively. With James H. Hinton’s appointment, AMN Healthcare also increased the size of its board.
InvestingPro Insights
NASDAQ: AMN Healthcare Services Analysts have a favorable outlook for HCSG) Inc. because of its recent performance, and InvestingPro data provides additional context for potential investors. The company has a market capitalization of $2.21 billion and a price-to-earnings (P/E) ratio of 22.33, which is very close to the adjusted P/E ratio of 22.27 for the previous year as of Q2 2024. The business continues to enjoy a healthy gross profit margin of 32.1% despite a significant decline in revenue of 26.21 percent during the same time period. BMO Capital Markets may have increased its price target as a result of this margin performance.
Two InvestingPro Tips provide additional information:
AMN is valued because of its high free cash flow yield, which is a good sign for investors looking for investments that make money. In addition, despite the fact that analysts anticipate a decline in sales for the upcoming year, they predict that the business will continue to be profitable. This is in line with the most recent earnings report from the company, which showed that strong profit margins were achieved despite lower revenue guidance.
InvestingPro provides additional advice and metrics for investors who want a deeper comprehension of AMN Healthcare’s financial health and prospects for the future. For a comprehensive investment analysis, there are currently five additional InvestingPro Tips available.
