Ladies and gentlemen, thank you for standing by, and welcome to the AMN Healthcare Quarter One 2020 Earnings Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. Instructions will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Randy Reece, Director of Investor Relations. Please go ahead.

Good afternoon, everyone. Welcome to AMN Healthcare’s first quarter 2020 earnings call. A replay of this webcast will be available at amnhealthcare.investorroom.com following the conclusion of this call. Details for the audio replay of the conference call also are in our earnings release issued this afternoon. Various remarks we make during this call about future expectations, projections, plans, events or circumstances constitute forward-looking statements. These statements reflect the company’s current beliefs based upon information currently available to it. Our actual results may differ materially from those indicated by these forward-looking statements as a result of various factors, including those identified in our most recent Form 10-K, our earnings release and subsequent filings with the SEC. The company does not intend to update the guidance or any forward-looking statements provided today prior to its next earnings release. This call contains certain non-GAAP financial information. Information regarding and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release and on our Financial Reports page at amnhealthcare.investorroom.com. On the call today are Susan Salka, Chief Executive Officer; Brian Scott, Chief Financial Officer; Kelly Rakowski, Group President and Chief Operating Officer of Strategic Talent Solutions and Landry Seedig, Group President and Chief Operating Officer, Nursing and Allied Solutions. I will now turn the call over to Susan.

Thank you, Randy, and welcome, everyone. We appreciate you making the time to join us today. The world has changed dramatically over the past two months, creating challenges and collaborations that might have been previously unimaginable. But by far, the greatest impact in sacrifice has been made by our country's health care heroes, our nurses, physicians, allied professionals, leaders and every health care worker that puts themselves on the front lines and at-risk to care for patients. The selfless perseverance of these heroes and the healthcare organizations who enable life-saving compassionate care deserve our eternal gratitude. They inspire us, they give us confidence and they push us to go beyond what we ever thought possible to make our greatest contributions. I am always proud of the AMN team and the passion and talents they pour into our responsibility to enable quality health care. But these last few weeks have given me and all of us, an even greater sense of pride, purpose and gratitude. The AMN team stepped up and collaborated in ways, I think even surprised ourselves. The spirit of the team, combined with a solid business continuity plan enabled us to quickly move our team members to work-from-home within a matter of days. We were then able to redeploy our talent to where they were needed most. We always prioritized the safety and health of our team members and clinicians and provided them with support as they and we, as a team, navigated through the crisis. COVID-19 has been highly disruptive to the health care community, and the effects on our business have been fast changing. Soon after the crisis took hold in the U.S. in late March, demand for nurses and respiratory therapists surged as hospitals prepared for anticipated COVID-19 demand. With COVID-19 patient census, elective surgeries…

Thank you, Susan, and good afternoon, everyone. I would also like to express my sincere gratitude to the frontline healthcare workers across this country who risk their lives to care for our families. And I am also so proud of the AMN team for their passion and efforts to support our healthcare professionals, clients and each other every day. Before I talk about the results and guidance, I wanted to quickly recap our updated reportable segments effective this quarter. Our Nurse and Allied Solutions segment now includes our revenue cycle solutions business. Our new Physician and Leadership Solutions segment includes our Locum Tenens, interim leadership and executive and physician permanent placement businesses. Our Technology and Workforce Solutions segment includes our Language Interpretation, VMS, Predictive Analytics, RPO and Credential Link businesses. Historical financial information for these new segments is posted in the Investor Relations section of the AMN website. First quarter revenue of $602 million was at the midpoint of our guidance range. Our Nurse and Allied Solutions segment performed in line with expectations. Physician and Leadership Solutions and Technology Workforce Solutions segments were modestly below our expectations due to the impact of COVID-19. Reported revenue grew 3% sequentially and 13% year-over-year. On an organic basis, revenue was flat sequentially and up 3% year-over-year. Gross margin for the quarter was 33.5%, up 30 basis points from the same quarter a year ago and down 10 basis points from last quarter. Gross margin rose year-over-year due to a favorable segment mix shift. Consolidated SG&A expenses were $146 million or 24.3% of revenue compared with $120 million or 22.5% of revenue in the same quarter last year. The year-over-year increase includes about $9 million of additional SG&A from the acquisitions of Stratus Video, b4health and Advanced Medical, $7 million in onetime acquisition-related expenses…

Thank you. [Operator Instructions] First, we'll go to the line of A.J. Rice with Credit Suisse. Please go ahead.

Hello, A.J.? We are having difficulty hearing you, A.J. We might need to have you get back in the queue. Are you there?

No, I'm trying. Does that work? Is that work?

Perfect. That is great.

Okay. Sorry about that. Glad to hear everyone safe and well. Sorry about that. First of all, just maybe exploring a little bit the nature of the discussions you're having as these markets start to reopen. Obviously, for the Travel Nurse and Allied side, it takes a little bit of lead time to get people in there. But alternatively, I could see that hospitals wouldn't want to recruit to make up some of the loss procedures that now hopefully will come back. So are they -- how is that discussion going? And what do you expect to see as they reopen some of these markets, is there any way to talk about that?

Sure, A.J. So I'll start and then maybe my colleagues can chime in if they have more to add. But absolutely, we're talking daily, if not multiple times a day with clients about what their expectations are. And as I mentioned, we're starting to see orders come in, which we expected as they were discussing the reopening of whether it be ambulatory surgery or rehab centers or physician offices. And then as you would expect, our most strategic MSP clients are talking with us about their plans. In some cases, it's a matter of moving patients that had been perhaps COVID patients occupying OR suites that are now moving back into ICUs. And, therefore, they're able to open up their ORs, and they want to make sure that we have the staff to help them open. Their staff is pretty burned out, even those that have been perhaps sitting on the sidelines a bit. They're turning in some cases, not all, but in some cases, first to travelers to help them open, particularly if we had travelers there previously. And then likewise, on the physician front, we're already receiving orders from several clients as they are beginning to open. And we get a little bit of a preview through even our Stratus organization, when you think about it, the -- we mentioned the interpretation minutes were down for the first few weeks and then started to rise. And that was really a sign of some of those care settings opening up and procedures beginning. And so that was some of the pre-op work that was going on. And so we feel pretty confident that every week, we should continue to see some more orders coming in from those increased needs. As we look to our clients, just as an example, we did a bit of an informal survey with our clients, and just sort of looked at different parts of the country, and a good number of them are expecting that by June. They will be moving into more full swing, meaning sort of 50% to 70% opening. And then by July, opening at an even faster pace than maybe even at full capacity. They may be optimistic about that. I don't know. They would know best, but at least it gives an indication of how fast, they hope that they'll be moving along. So maybe with that, I'll just ask, if Kelly has anything she'd like to add to the discussion.

Yeah. Thank you. And A.J., I think it's – I know uncertain is a word that's being overused at this point. But we are seeing a lot of regional variation. We've seen some organizations that are ready to go that didn't have quite as much of an impact from COVID. But the – they're watching their state orders, as they're lifting, but also operationally to get back online. They have to bring staff back. They have financial challenges. They have testing challenges, supply challenges. But I do – another, I think, opportunity that we have as we're working with clients is as they experience a lack of flexibility in their staff. You saw the level of furloughs and things like that. So as they build back up their staffing plans, working with us to incorporate more of that flexibility into their staffing plans going forward. So as that uncertainty increases, they're able to flex a little bit easier to the demand, both up and down.

Okay. And maybe just sort of another question along these lines, I know coming into the year, one of the challenges was getting more travelers and more people willing to take the temporary assignments. You mentioned, and obviously, it's been reported that people have come out of the woodwork to help serve and help address needs. Do you have any sense that, that might result in a continuing number of people that would be willing to take these assignments on a long-term basis? Or is that a surge that just was specific to the crisis?

I'll have Landry pick up on that, A.J., because, as you well know, Landry has been building the nursing business and has been responsible for the great success that we've had in the last several years. And so a lot of investments have been made that, I'm sure he's going to want to talk about. So Landry, you want to take that?

Yeah. A.J., this is Landry. You might remember that, if you went back prior year, we actually had a little bit of a headwind, where we had quite a bit of demand out there and needed to generate some more supply to match up with that demand. Made a lot of investments over the last 12 months to 18 months and those investments really paid off whenever – whenever we saw a surge in demand, primarily due to some of the COVID-19 orders that we're getting and there were times whenever we were working through the end of March and the beginning of April, where we would see our new application numbers be at least two times, and even some weeks it was three times greater than what we were used to. So above prior year as well as what our goals were. So generating that amount of supply, it really helped to build our database that, we'll be able to use for future placements. Of course, we were also able to place some of those clinicians out on assignment to help with the crisis. So, all in all some great investments and some really good numbers of new applicants and new nurses in our database.

Okay. And maybe just a last question around Stratus. There's been discussion intra-quarter, and you mentioned it again today of some retooling and all to do more telehealth. Can you expand a little bit on what you're doing there? And has that then become a potential revenue source independent of the translation services? Or is it all sort of intertwined together?

Yeah. A.J., it's Kelly. Thanks for that question. It's a combination of both. We really saw the versatility of the platform we are able to expand its ability to do secured messaging and communication. On behalf of our clients, we were able to shift some of their own interpreters onto our platform to support that. And then, we were able to use the platform itself to do some other things. For example, we're launching AMN Cares, which is a closed-loop capability that allows us to do communications, testing, support telehealth visits, track and document progress of an individual's progress through the disease and communicate that back, and we're applying that in settings outside of health care as well. So we do see a lot of versatility, A.J., on both growing and deploying the interpretation services, but also some other uses for how we leverage those devices and that secure communication to apply to other settings.

Okay. Thanks a lot.

Thank you, A.J.

Thank you. And next, we'll go to the line of Tobey Sommer with SunTrust. Please go ahead.

Hi, Tobey.

Thanks. Hi. Could you comment about to the extent you have been able to discern in a short period of time, how the company's performance has been in and among MSP clients, particularly as demand has started to soften and see whether the theory of being able to sustained higher fill rates is being played out in – today?

Great question. I'm so glad you asked it, because we have a good news story to share there. We certainly were able to get closer to our MSP clients during this difficult time and certainly, serves them well through the crisis itself. But because of that, we were able to, I think, forge stronger relationships with them and add in other capabilities, other services I mentioned like literally within days and weeks rather than maybe normally taking months to add in other services. And I think that will enable us to do more for those clients over time. But in addition, as their COVID orders decline, which is a good thing, we are working with them to plan what that rebound is going to look like and making sure that we have the clinicians ready to staff into those. And I'll let Landry talk first about the success that we've had in Nurse and Allied. But maybe I'll first mention that Locums, in particular, has done an outstanding job of this. In just the last month, as an example, they have had their highest direct fill rates that we have ever seen across their MSP clients. I'm so proud of them with that. And some of them are COVID-related, but some of them aren't necessarily. And so we think that's a good example of how we can, not only serve those clients well, but mitigate our downturn, which is what you're referring to, during times of demand softness. But Landry, why don't you talk a bit about Nurse and Allied.

Yes, Tobey. Thanks Susan. So, yes, the MSP strategy really does help a lot. Whenever that demand goes down a little bit, which we certainly have seen for certain specialties. Whenever that happens, we're -- it allows us the opportunity to fill the demand that's there with our own nurses. So, more directional, but just to kind of give you a sense, with the Nurse and Allied segment, our Q1 revenue mix in our MSP business was 70%. And right now, we're projecting Q2 to be around 75%. So, it really does kind of show that overall strategy within our MSP accounts. And it really kind of helps us whenever the demand's a little bit softer.

Could you give us a little bit of color for your nursing business in proportion of business or travelers that's associated with COVID assignments, just so we can get a sense for what the decline looks like as you work your way through 2Q and sort of time vanilla regular way business?

Yes, I don't know if I have that number in front of me on the kind of, I guess, COVID-19 placements versus the non. As you would expect, whenever we were exiting Q1, we did see quite a few cancellations of areas such as like OR as elective procedures went away also in our Allied business, within our skilled nursing facilities. So we did see quite a few cancellations with businesses where, quite honestly, the facility might have been closed or there was just no sense for those types of specialties. Whenever we went towards the end of Q1 and beginning of Q2, a lot of our demand was around ICU, ER, respiratory therapy and the teams really did come to the table, and we're able to help our clients significantly in many areas across the U.S., primarily in some of the hotspots that you've seen. As you exit Q2, we are seeing a lot of those COVID-19 placements come off, and our volumes are coming down. So, right now, our volume in our Travel Nurse business in June is expected to be below prior year.

Yes. And just in order of magnitude. Tobey, this is Brian. I'd say we're looking at somewhere probably in the mid-teens range from what we're seeing right now. And we just are at this interesting inflection point where you have the demand going down from COVID assignments again, hospitals are starting to plan for reopening and increasing their utilizations. But it's a bit early to know the amount, timing, and magnitude of that recovery. So, again, we're starting to get some demand coming in related to it. And it's just -- but it'll take a few more weeks then to see how quickly that will rebound. So, right now as we look to June, based on the data we have, we're down mid-teens and the nursing volume. So, this should help at least you a sense of the magnitude we're exiting the quarter.

Absolutely. Last question for me. Could you give us your best guess in perspective about how the demand for temporary clinicians, principally nurses, but you can comment on the other categories as well, amid high unemployment, which historically has been sort of this gravitational force, but I understand your customers talking about building more flexibility into their workforces and needing to start-up.

Yes. So, it's really -- it's difficult. I know you're asking us to make our best educated guess, and we certainly have those, Tobey. More typically during just a pure economic downturn, we -- if you see a spike in unemployment -- general unemployment, you would see nurse attrition go down and vacancies go down. In this environment, there are some differences that I think are important, the reason for the downturn being the pandemic and the stress that that's put on the clinical workforce already, particularly nurses. One of the things that we're hearing from the nurses themselves, through surveys we've done, but also from our clients is that the nurses are very burned out. And you see this, I suppose, even in the news in the media, where nurses are frustrated about what they've gone through and, certainly, very proud of their work, but perhaps needing a break from that environment. And this was just reinforced in a survey we did over the last week, which indicated that those clinicians that were most involved in the crisis feel that they need to take a break from nursing. So we think that will be a factor. The other is that the nursing workforce today is older than it was 10 years ago, on average, and that could play into their willingness and ability to go back to the patient's bedside, particularly on the heels of the pandemic, where they may be fearful of what they might need to face and the demands. Fear might be the wrong word, because I think every nurse wants to step up and take care of those patients. But if they have choices to take other types of nursing-related jobs, they might prefer that. The other thing to keep in mind is we were already in a very severe nursing shortage before we came into this environment. So, you just sort of have to factor all of those things into how might this play out. And, also, quite honestly, how fast things are going to rebound. Right now, I think, that most of our clients are cautiously optimistic about how quickly they'll be able to bring patients back in and rebound their procedures. In fact, several clients are talking about expanding the utilization of their ORs and the ambulatory surgery centers, so that they can deal with the pent-up demand. It's very big in oncology, in particular. And so they're extending hours on a daily basis, talking about opening on the weekends and their existing or previous staff might not be willing to do those things. So we can help augment that expansion. So, hopefully, that's helpful. We don't have a crystal ball. We don't have all those answers, but I do think it will be different than the prior economic contractions.

Thank you.

Thank you, Tobey.

Thank you. And next, we'll go to the line of Jeff Silber with BMO Capital Markets. Please go ahead.

Thanks so much. I wanted to focus on billing rates for a second. Is it safe to assume that the folks you were putting on assignment that were more COVID-related, were billing out at a higher rate and if it's possible to give us some sort of order of magnitude there?

Jeff, yes. So that was primarily a factor in our nursing business and a little bit within Allied where we had respiratory therapy. We didn't experience that in locums as much. Now, granted the need wasn't as great. It was primarily hospitalists and ER, nurse practitioners, a bit of CRNA. And there was sufficient supply of clinicians that were willing to come into those settings. So we didn't really have a rate uplift in locums, but I'll let Landry speak to the Nurse and Allied business.

Yes. Thanks. So I would just remind us that we had some pretty strong year-over-year bill rate increases before all this started. So across Nurse and Allied, most of those businesses in Q1, their bill rates were up year-over-year, anywhere kind of in the 2% to 5% range. Of course, whenever the COVID-19 crisis hit, those placements moved more toward what we would consider our, kind of, crisis rates or our labor disruption rates. So now we are seeing those placements. So, of course, the rates will be coming down, as we exit the quarter. And not to give too much around Q3, but the best way to probably think about Q3 is that we would get back to bill rates similar to what we were seeing in Q1.

Okay. That's helpful. And again, order of magnitude, your crisis rates versus normalized rates, what's the delta?

This is Brian. Hi, Jeff. It really varies based on the geography and the urgency of the position, but it can be anywhere from 25% premium all the way up to of doubling, if it's for a really hard to fill position or really quick need. And that's where we’d get -- we'd see more of a labor disruption type of rate environment.

Okay, great. That's helpful.

Yes. Q2 has a mix of both, obviously, standard assignments and then a variety of different levels of those crisis assignments.

Okay, great. Just shifting gears operationally. You talked about intra-quarter, how demand shifted away from COVID-related resignments to other assignments. Can you ship your recruiters accordingly among the different specialties?

Yes. That's -- it's a great question, because it goes back to what we even did during the early stages of the crisis where we needed to shift a few hundred of our team members to help our nurse placement team. And it wasn't just in recruitment and account management, although, those were certainly important areas. It was also within credentialing and customer service and support in all kinds of areas. So I just want to give a big shout-out to our team, where we were able to move over 200 team members internally within a matter of two weeks and get them trained up and productive to help ensure we were getting those clinicians placed, credentialed, paid and certainly have the support behind them. So big thanks for them. And it showed that we could do it, too. You're asking specifically about recruiters, yes. We've actually been changing our training programs, our recruiting programs and profiles over the last year, so that we could be better at pivoting both within our existing different business lines like Allied and Locums and Nursing, but also with the eye that we could move recruiters from different businesses like from Locums and into Nursing or from Allied and into Nursing. And we were absolutely able to do that.

Okay, great. That’s helpful. Thanks so much.

Thanks Jeff.

Thank you. And next, we'll go to the line of Jason Plagman with Jefferies. Please go ahead.

Hey good afternoon. I wanted to ask about question on gross margin outlook. Is any change in your expectation for Q2 compared to the recent trends? I noticed it wasn't mentioned in the guidance certainly any color there?

Jason, this is Brian. I'll take that one. Yes, Q1 gross margin at 33.5%, pretty much in line what we expected. There's no significant changes at the business unit level. So within our – we talked about nursing and pricing, a lot of that is being used to -- obviously, it will pass along to the clinician. So I think if you look within nursing and Allied, Locum's a different divisions the margins are going to be pretty consistent from Q1 to Q2, and we expect that to continue going forward. The gross margin at a consolidated level, you'd expect to be down a little bit in the second quarter just because of the mix change. With a higher mix of Nurse and Allied in Q2, it is a below-average gross margin that will bring it down probably somewhere more in the 33% range.

Got it. That's helpful. And then other one for me was, any update on MSP contract next activity going on, assuming that was the pace of discussions slowed during the COVID outbreak. But just any commentary you could provide on MSP new contracts and if you're having increased discussions given what we just – the healthcare system just went through.

Hey Jason, it's Kelly. I'll share a few insights around that. So first of all, we did get off to a very strong start prior to the crisis. So we had a good Q1 of both new contracts as well as some expansions. We're very pleased with that and had a very strong pipeline. And you're right. It did slow down during that time, although we were able to bring on new VMS customers who had very high needs. Clients that have had high needs for staffing, and we were able to offer them our open marketplace solution that allowed for very rapid sort of contracting and access to staffing, and we expect those to sustain following the crisis. But our MSP -- our large MSP clients did slow down. But the good news is we're starting to see a level of reengagement. About 70% of our pipeline has reengaged with us, starting to talk about their future needs and moving them back to decisions. We also had several verbals on our existing MSP clients around renewals and expansions. And in fact, some of those were based on the kinds of support and relationship deepening that Susan mentioned earlier. So very pleased with that as well. So it will be slower in Q2, but expecting that to pick back up.

Okay. Thank you.

And next, we'll go to the line of Mark Marcon with Baird. Please go ahead.

Good afternoon. Hope everybody's well. Just wondering with regards to physician and leadership solutions, can you talk a little bit about the trends, particularly within some of the Locum specialties in terms of what you're seeing?

Absolutely, Mark, and thank you. We are well, and I hope your family is too. We -- I'll talk about Locums and then have Kelly pick up on some of the other leadership parts of the business. So as I mentioned, we saw certainly a strong start to the year. It's so unfortunate that they felt that disruption for many reasons, but they were really hitting on all cylinders at the beginning of the year, and we felt pretty confident we were going to be above year-over-year and really most specialties were strong. Still saw a bit of weakness in ER and hospitalists as we began the year, but really a lot of other areas where we're doing quite well. And we had very strong demand across the business overall, and we were starting to see the productivity improvements of our team. So through the crisis, we saw in a pretty immediate slowdown or almost halting of dentistry, which is small for us, but still, it pretty much went away in a matter of a few weeks and then we had surgery, primary care, oncology and many of the subspecialties that came to a pretty quick halt, not altogether, but we saw pretty significant declines there. That was offset somewhat by increased needs in ER and hospitalist. These were COVID-related nurse practitioners and PAs, CRMAs and we are kind of regional in particular hotspot and some of them were shorter finance because they weren’t sure how long they would be going on. We also were able to force them really nice relationships with states as they were standing up temporary facilities and capabilities expecting more patient flow that -- not all COVID, it was somewhat to take care of normal patient senses since they thought the hospitals would be full…

Yeah. I'll piggyback off of that on interim leadership, again, coming in with a strong quarter, we were able to mitigate a lot of the roll-offs and cancellations. Our first need was really to keep our interims in place. A lot of them were traveling with some of the travel restrictions, really working with them and clients to make sure they were capable of continuing to support and stay on their assignments. Similar to locums, we had several of our interims deployed in these rapid facilities, in some cases, whole leadership teams were mobilized to support those in conjunction with our clients or the states. So that was just a tremendous way we saw leaders come forward. And even with some of our MSP clients, where we were seeing a lot of deployment of nurses into maybe areas where they weren't as familiar with or newer grads. We've leveraged our interim leaders in some places to serve as mentors or support onboarding from a remote location. We actually used our Stratus platform to create a safe and secure communication, so some really creative use of that kind of leadership talent to support the market. So they're down probably on the lower end of our range of around 10% coming out of Q2, and not as many new orders coming through as organizations are getting back online. The perm businesses, physician perm, executive search. Again, a lot of things put on hold. We're seeing our new search volumes down pretty significantly. The good news is we've been able to maintain our search volumes that were existing. So, only about 20% to 25% of our searches – active searches were put on hold. We're starting to see some of those come back online. And we were – we deployed unique and innovative ways to maintain the pace of those, and we were able to place a lot of physicians and leaders during this time doing that all remotely. But those businesses will stay constrained and a little bit longer to bounce back, probably sometime in Q3 and Q4.

Thanks for the color, Kelly. On the Nurse and Allied side, where would you say orders are right now relative to a year ago in terms of active orders that have just recently come in? Just trying to get a sense for the contraction.

This is Landry. Yeah. So I mean, I guess, I would caution us a little bit to think about the number of orders. If you went back to sometimes last year, demand was up at some point, 30%. And the business just didn't follow it that way. So I have to think of it the same way whenever demand is down. The best thing to point to would be watching hospital synthesis and as those – right now those are of course, are down quite a bit, anywhere from the 40% to 50% range right now. And so as we see those censuses come back up, I would expect our order demand to follow.

Great. And then, Susan, you've been through multiple cycles. There's obviously multiple reports about how some of the hospital systems are stressed financially right now. How are you thinking about like as we go through the second quarter, going to the third and fourth quarters, how are they going to manage differently? How can you help them? And what are going to be some of the factors that are going to guide your decision-making in terms of managing the business, both from an expense and productivity perspective, production capacity when we get on the other side of this?

Sure. Sure. So maybe, I'll start first with how we are interfacing with our clients and where we see the opportunities. And you will know, we've been through these downturns for different reasons before, and we have a history of using them as a catalyst for further differentiation. Good or bad, we know very well how to work through the cost structure and the cost side of this equation and make sure that we maintain the financial health of the organization. But what I've also learned is we must continue to invest in the future, and we must continue to invest in and support our team because that team and the talent we have is going to be absolutely essential for us to rebound and grow back out of whatever decline that we feel. And fortunately, for us, that team is much bigger today from a differentiation standpoint and an offering. We have, by far, a more comprehensive set of solutions than we had a decade ago. That's made us more resilient. It helped us, I think, to mitigate the downturns that we may face going ahead and with our clients. It means we can bring a different value proposition to them than what we could bring to them a decade ago. So we can help them, yes, with their staffing needs and recruitment needs, but we can also help them to optimize their cost structure as it relates to workforce. Through our technology offerings, we can help them better understand where, when and how they need to have the right person, how they can optimize their own internal flex pool and internal pool, which is very important right now so that they can deploy people only when and if they need them, whether it be their people or contingent…

It is. Thank you.

Thank you. And next, we'll go to the line of Tim Mulrooney with William Blair. Please go ahead.

Good afternoon. Can you hear me okay, Susan?

Yes, we can. Tim, than, you.

Yes. We’re running up against the hour here. So I am going to make this quick. On the nursing business, can you talk about your mix in the travel nursing business, what percent of your travel nurses are typically OR assignments versus ER and ICU-type assignments? And was it possible for you to reassign a certain percentage of your OR nurses to an ER setting during this pandemic?

Yes. Great question. So we don't give the percentages necessarily. I think we usually share that our top five specialty areas in nursing are in the critical care areas, OR, Med Surg, Tele, those are typically the top five, in this environment, we absolutely were working with clients and our clinicians to determine who could flex their skill set and work in different settings. And sometimes it was a nurse that was working and floating to another area. It could have even been in allied, quite honestly. We had a nurse who used to be a respiratory therapist. And so they move back down into the ER to help with respiratory therapy. And then even physicians in advanced practice professionals were able to flex. You can usually flex to an area that is lower then your license and skill set. It doesn't always translate, but in many cases, they can. And so we were certainly trying to work with our clients to make sure that, that enabled us to pivot people more quickly.

Okay. That's helpful. Thank you. And one more for me on telehealth. So do you think this pandemic will hasten the adoption of telehealth visits? And if so, how do you think faster adoption of telehealth ultimately impacts your business? I've been getting this question more often from investors these days. And would love to hear how you guys are thinking about this?

Absolutely. Well, we think it's – yes, it will grow at a faster rate of adoption. And I think regulations have and will continue to help that. And we're excited about it because we have certainly made investments ourselves into telehealth capabilities. So far, it's been in the schools area with elevate. And Landry mentioned that, I think, or maybe I did about how we've been able to pivot our clinicians quickly to have more of them working, more of our speech therapists working over our telehealth platform. We expect that adoption to continue, which means that whether schools are open or working online, we'll be able to deliver those critical services to the students. And then within Stratus, we've been able to add additional capabilities. And as we look forward, we're going to add more. And then as we mentioned, we launched AMN Care. So we see it as an opportunity and then building relationships with other telehealth providers. We have this incredible network of clinicians all across the country and we know who they are, where they're licensed and in particular, who would like to do telehealth work. And so I think it puts us in a great position to be a partner for other telehealth companies as well.

Understood. Thank you.

Thank you, Tim.

Thank you. [Operator Instructions] I have no further questions in queue at this time.

Okay. Thank you very much. Well, we appreciate everybody joining us today, and we will certainly be updating you on our progress as we move forward. Be safe and be well. Thank you.

Ladies and gentlemen, that does conclude your conference for today. Thank you for your participation and for using AT&T Executive Teleconference service. You may now disconnect.