AMN Healthcare Acquires MSDR
February 9, 2024 – AMN Healthcare recently acquired MSDR for a purchase price of $300 million. MSDR consists of two healthcare staffing companies that specialize in locum tenens and advanced practices, Medical Search International (MSI) and DRW Healthcare Staffing (DRW). “We are very excited to welcome the MSDR team into the AMN Healthcare family and expand the workforce solutions available to our clients across the country,” said Cary Grace, president and CEO of AMN Healthcare. “Now more than ever, it is critically important that healthcare systems have streamlined access to the services, technologies, and healthcare professionals needed to support the patients and communities they serve. This acquisition is the result of our continued dedication to meet the needs of our clients, who I am confident will see the breadth and value of our services increased with this acquisition of MSDR.”
MSI, founded in 2002, serves healthcare systems across the United States by placing healthcare professionals that specialize in psychiatry, anesthesia, radiology, and surgery. DRW, founded in 2011, specializes in psychiatry, anesthesia, and surgery. Both companies are valued leaders in the locums industry. Chris Wang, chief executive officer, managing partner of DRW, will remain with the business as president of MSDR.
The acquisition positions AMN Healthcare for substantial revenue growth in locum tenens. MSDR revenue was $104 million in 2022, and year-to-date annualized 2023 revenue is approximately $155 million. AMN expects the deal will be modestly accretive to adjusted EPS in the first 12 months. This transaction is expected to be funded with a combination of cash on hand and borrowings on our revolving credit facility.
For income tax reporting purposes, the acquisition of DRW will be treated as an asset purchase, resulting in a step-up in the tax basis of the intangible assets acquired. This step-up in tax basis is expected to result in an annual cash tax savings of approximately $2 million over the next 15 years from the amortization of these assets for income tax purposes.
“With the acquisition of MSDR, AMN Healthcare’s portfolio of solutions will expand to provide clients with a larger and more diverse candidate pool that includes healthcare professionals that specialize in some of the most needed, in-demand services,” the company said. “The acquisition also allows AMN Healthcare and clients to benefit from the expertise and knowledge of the MSDR team in recruitment, placement, and operations, including candidate matching technology that is tailored for locum tenens.”
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Wells Fargo Securities served as exclusive financial advisor to AMN for this transaction, and legal counsel was provided by Sheppard Mullin. Nolan & Associates acted as exclusive financial advisor to MSDR, and Morgan Lewis provided legal counsel.
Serving Healthcare Organizations
AMN Leadership Solutions, a division of AMN Healthcare, provides a complete range of healthcare leadership search and talent solutions including: executive and physician leadership search, interim and leadership search, physician and advanced practice recruitment, recruitment process outsourcing, and leadership and talent optimization services. Underlying this initiative are also the services of three brands: Phillips DiPisa (executive and physician leadership search), B.E. Smith (executive search), and Leaders for Today and the First String (interim and leadership search). These brands are part of the AMN Leadership Solutions suite.
AMN Healthcare Leadership Recruits CHRO for Tanner Medical Center
AMN Healthcare recently placed Jill Anelli as senior vice president and CHRO for Tanner Medical Center in Carrollton, GA. Amy Simonson, an experienced senior executive recruiter with a demonstrated history of working in the hospital and healthcare industry, led the search. Ms. Anelli most recently served as regional HR director for the midlands division of MUSC Health in Columbia, SC. She is a member of the International Coaching Federation and has a passion for executive healthcare coaching. Previously, Ms. Anelli served as director of HR for Collier County Public Schools. Prior to that, she spend over seven years with Physicians Regional Healthcare System as the director of human resources, responsible for implementing and maintaining systems that support the employee base.
AMN Healthcare provides access to a comprehensive network of healthcare professionals through its recruitment strategies and breadth of career opportunities. The company helps providers optimize their workforce to reduce complexity, increase efficiency and improve patient outcomes.
AMN delivers managed services programs, healthcare executive search solutions, vendor management systems, recruitment process outsourcing, predictive labor analytics, mid-revenue cycle management, credentialing solutions, and other services. Clients include acute-care hospitals, community health centers and clinics, physician practice groups, retail and urgent care centers, home health facilities, schools, and many other healthcare settings.
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Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Executive Editor; Lily Fauver, Senior Editor – Hunt Scanlon Media
