AMN Healthcare Investor Presentation December 2018 The Innovator in Healthcare Workforce Solutions and Staffing Services
Forward-Looking Statements This investor presentation contains “forward- The Company’s actual results could looking statements” within the meaning of differ materially from those discussed in, Section 27A of the Securities Act of 1933, or implied by, these forward-looking as amended, and Section 21E of the statements. Factors that could cause Securities Exchange Act of 1934, as actual results to differ from those amended. The Company bases these discussed in or implied by the forward- forward-looking statements on its current looking statements contained in this beliefs, expectations, estimates, forecasts presentation are set forth in the Company's and projections about future events and the Annual Report on Form 10-K for the year industry in which it operates. Forward-looking ended December 31, 2017 and its other statements are identified by words such as periodic reports, its current reports and its “believe,” “anticipate,” “expect,” “intend,” other filings with the SEC. Developments “plan,” “will,” “should,” “would,” “project,” subsequent to this presentation are likely “may,” variations of such words and other to cause these statements to become similar expressions. In addition, statements outdated with the passage of time. that refer to performance; plans, objectives and strategies for future operations; and other characterizations of future events or circumstances, are forward-looking statements. 2
Our Mission Every day, we . . . Deliver the best talent and insights to help healthcare organizations optimize their workforce Give healthcare professionals opportunities to do their best work towards quality patient care Create a values-based culture of innovation where our team members can achieve their goals 3
A Recognized Leader 2018 2018 2016 2018 2011 Peer Review Designation Exemplary Corporate Equality Index Best Proxy Statement to AMN MSP (Managed Compensation Gender Equality Index Services Program) since Discussion & Analysis 2011 (CD&A) Award Winner 2018 2018 2018 2018 2018 Re-Certified through 2020 Healthcare Leader The Top Size of Deal Largest Healthcare Provider Based on Customer First Corporate Staffing Company in Top four-year performer Satisfaction and Certification for Staffing Based on Customer the U.S. in revenue, profits, and Quality Services by the Satisfaction and Quality stock returns. Joint Commission
AMN at a Glance The Innovator in Healthcare Workforce Solutions and Staffing Services AMN continues to evolve from a traditional Staffing and Recruitment healthcare staffing provider to a full-service Workforce Solutions comprehensive workforce solutions Executive Leadership company. Advisory Services Workforce Solutions Revenue Growth 2017* 2008 Workforce Workforce Solutions Solutions Staffing Staffing Workforce Solutions: MSP, Leadership, Physician Perm, VMS, Mid-Revenue Cycle, Workforce Optimization and RPO * Pro forma to include the April 2018 acquisitions of MedPartners, Phillips DiPisa and Leaders For Today 5
Continued Evolution in Workforce Solutions Mid-Revenue Cycle, C-Suite Search and Expanded Interim Leadership 2018 MedPartners, Phillips DiPisa, Leaders For Today Interim Leadership and Executive Search, 2016 Rapid/Project Staffing, Medical Coding BE Smith, HealthSource Global, Peak Health Solutions Nurse, Physician, VMS, Leadership, Predictive 2014 - Modeling Onward Healthcare, Locum Leaders, 2015 Medefis, The First String, MillicanSolutions, Avantas 2010 - Workforce Solutions: MSP, RPO and VMS 2013 MedFinders, ShiftWise 2000- Physician, Allied, Nurse and Search Expansion 2008 Merritt Hawkins, StaffCare, MedTravelers, O’Grady Peyton 1990s Nurse and Allied Expansion American Mobile Healthcare, MedicalExpress 1980s Travel Nurse 6 American Mobile Nurses : A founding company
Recent Acquisitions Mid-Revenue Cycle Workforce Solutions Leading provider of mid-revenue cycle workforce solutions, enabling healthcare facilities to optimize revenue, improve patient care management, and support quality/outcomes reporting requirements Strengthening Executive Search and Interim Leadership Healthcare-focused executive Fast-growing provider of interim search firm and permanent leadership 7
MedPartners Acquisition Leading provider of mid-revenue cycle workforce solutions, enabling AMN to support clients with revenue and quality initiatives Workforce Solutions: Clinical Documentation Improvement • Registry Case Management • Medical Coding • 2017 annual revenue $125 million • Adjusted EBITDA margin: 16% • Purchase price: $195 million - $25 million NPV tax benefit • Immediately accretive 8
Phillips DiPisa and Leaders For Today Phillips DiPisa: Highly regarded healthcare executive search firm with strong C-suite expertise Leaders For Today: Growing interim and permanent leadership staffing firm • 2017 annual revenue: $23 million • Adjusted EBITDA margin: 20% • Purchase price: $30 million - $4 million NPV tax benefit • Immediately accretive 9
Financial Growth with Leverage Revenue Adjusted EBITDA $268 $256 $2,117 $1,988 $237 $1,902 $1,463 $165 $1,036 $1,012 $91 $85 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 LTM FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 LTM ($ in Millions) 10
Business Overview
AMN Portfolio of Solutions Staffing and Executive Workforce Solutions Advisory Services Recruitment Leadership • Travel nursing • Managed services • Workforce analysis • Interim leadership programs (MSP) and optimization • Allied staffing • Executive search • Vendor management • Predictive modeling • Locum tenens • Physician systems (VMS) and analytics leadership search • Local staffing • Recruitment process • Consulting • Nurse leadership search • Physician placement outsourcing (RPO) • Leadership training and • Rapid response • Mid-revenue cycle development workforce solutions • EMR implementation • Scheduling and labor • Labor disruption management • Education services • Float pool management Value through leadership, innovation and strategic insight 12
Nurse and Allied Solutions Short- and long-term travel and local staffing • Travel nurse assignments are typically 13 weeks • Over 60% of segment revenue comes through exclusive MSP relationships 60% • AMN is the largest travel nurse and allied staffing company of AMN Pro Forma Revenue* Includes: All nursing specialties Physical and occupational therapists Respiratory, imaging, lab Pharmacists, technicians Robust Demand: Key Drivers AMN Recruiting Brands Shortage of nurses Shift to MSP relationships Shift to flexible staffing models Aging U.S. and clinical population Favorable economy and low unemployment * Pro forma to include the April 2018 acquisitions of MedPartners, Phillips DiPisa and Leaders For Today 13
Locum Tenens Solutions All physician and advanced practice specialties, including: Primary Care & Internal Medicine Psychiatry Hospitalists Surgery Emergency Medicine 19% Radiology Dentistry Emergency Medicine Typical assignments range from days to multiple months Robust Demand: Key Drivers AMN Brands Shortage of physicians Growing demand for healthcare services Specialty specific demand Aging physician population 14
Other Workforce Solutions • Interim and permanent executive leadership and permanent physician 21% placement across all healthcare settings • Vendor Management Systems are proprietary SaaS-based technology solutions for managing contingent labor • Mid-Revenue Cycle Solutions provide hard-to-find specialized talent for case management, clinical documentation, registry and medical coding Informed Decision Making • Workforce Optimization Solutions include consulting, data analytics, Reduce Complexity predictive modeling and SaaS-based Flexible Access to Skilled Talent scheduling technology Drive Optimal Workforce Mix Key Drivers Brands Workforce and leadership shortages Rising healthcare costs Increased administrative complexity Revenue integrity/capture, quality reporting Increased need for data-driven insights 15
Leader in Managed Services Programs (MSP) • Outsourced partner to manage all supplemental workforce needs under one contract • Recruitment, credentialing, clinical support, reporting, consolidated invoicing AMN Perspective Client Perspective Higher fill rates Cross-selling opportunities Improved fulfillment time Recruitment advantages Staffing optimization Less cyclicality Controlled spend Improved demand visibility Accountability Strong client relationships Regulatory compliance High client retention 500+ affiliates 16
MSP Growth Adoption of MSP has gained substantial momentum in recent years $1,165 MSP Gross Billings Under Management ($M) $1,018 MSP Direct Fill Revenue Filled by Affiliate Network $762 $504 $406 $380 $786 $291 $649 $219 $454 $41 $350 $296 $265 $25 $185 $134 2009 2010 2011 2012 2013 2014 2015 2016 2017 MSP direct fill revenue as a % of AMN staffing revenue has grown from 1% in 2008 to ~50% today (1) (1) Staffing revenue consists of Nurse, Allied, and Locum Tenens revenue; on a consolidated basis, MSP was 43% of revenue 17
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