10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

———————

FORM 10-Q

———————

þ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended September 30, 2015

Or

o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period From _________ to _________

———————

CROSS COUNTRY HEALTHCARE, INC.

(Exact name of registrant as specified in its charter)

——————— 

Delaware	0-33169	13-4066229
(State or other jurisdiction of Incorporation or organization)	Commission file number	(I.R.S. Employer Identification Number)

6551 Park of Commerce Blvd, N.W.

Boca Raton, Florida 33487

(Address of principal executive offices)(Zip Code)

(561) 998-2232

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

———————

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ Yes o No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act:

Large accelerated filer ¨  Accelerated filer þ

Non-accelerated filer ¨ (Do not check if a smaller reporting company) Smaller Reporting Company ¨

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ

The registrant had outstanding 32,574,260 shares of Common Stock, par value $0.0001 per share, as of October 30, 2015.

INFORMATION RELATING TO FORWARD-LOOKING STATEMENTS

In addition to historical information, this Form 10-Q contains statements relating to our future results (including certain projections and business trends) that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and are subject to the “safe harbor” created by those sections. Forward-looking statements consist of statements that are predictive in nature, depend upon or refer to future events. Words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “suggests”, "appears", “seeks”, “will”, and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. These factors include, but are not limited to, the following: our ability to attract and retain qualified nurses, physicians and other healthcare personnel, costs and availability of short-term housing for our travel healthcare professionals, demand for the healthcare services we provide, both nationally and in the regions in which we operate, the functioning of our information systems, the effect of cyber security risks and cyber incidents on our business, the effect of existing or future government regulation and federal and state legislative and enforcement initiatives on our business, our clients’ ability to pay us for our services, our ability to successfully implement our acquisition and development strategies, including our ability to successfully integrate acquired businesses and realize synergies from such acquisitions, the effect of liabilities and other claims asserted against us, the effect of competition in the markets we serve, our ability to successfully defend the Company, its subsidiaries, and its officers and directors on the merits of any lawsuit or determine its potential liability, if any, and other factors set forth in Item 1.A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed and updated in our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission.

Although we believe that these statements are based upon reasonable assumptions, we cannot guarantee future resultsand readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date of this filing. There can be no assurance that (i) we have correctly measured or identified all of the factors affecting our business or the extent of these factors’ likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct or (iv) our strategy, which is based in part on this analysis, will be successful. The Company undertakes no obligation to update or revise forward-looking statements.

All references to "the Company", “we”, “us”, “our”, or “Cross Country” in this Quarterly Report on Form 10-Q mean Cross Country Healthcare, Inc., and its consolidated subsidiaries.

CROSS COUNTRY HEALTHCARE, INC.

INDEX

FORM 10-Q

SEPTEMBER 30, 2015

		PAGE
PART I. – FINANCIAL INFORMATION		1
Item 1.	Condensed Consolidated Financial Statements	1
	Condensed Consolidated Balance Sheets (Unaudited)	1
	Condensed Consolidated Statements of Operations (Unaudited)	2
	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows (Unaudited)	4
	Notes to Condensed Consolidated Financial Statements (Unaudited)	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	36
PART II. – OTHER INFORMATION		37
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 6.	Exhibits	37
Signatures		38

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PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CROSS COUNTRY HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, amounts in thousands)

	September 30, 2015			December 31, 2014
Assets
Current assets:
Cash and cash equivalents	$	24,584		$	4,995
Accounts receivable, net of allowances of $3,817 in 2015 and $1,425 in 2014	125,470			113,129
Income taxes receivable	158			307
Prepaid expenses	4,817			6,073
Insurance recovery receivable	3,156			5,624
Other current assets	1,539			1,055
Total current assets	159,724			131,183
Property and equipment, net of accumulated depreciation of $38,554 in 2015 and $47,590 in 2014	10,833			12,133
Trade names, net	38,201			38,201
Goodwill	80,758			90,647
Other identifiable intangible assets, net of accumulated amortization of $37,156 in 2015 and $34,209 in 2014	30,876			33,823
Debt issuance costs, net	973			1,257
Other non-current assets	18,361			17,889
Total assets	$	339,726		$	325,133
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses	$	32,109		$	27,314
Accrued compensation and benefits	32,613			28,731
Current portion of long-term debt and capital lease obligations	88			3,607
Sales tax payable	2,545			2,573
Deferred purchase price	2,210			—
Deferred tax liabilities	2,039			1,981
Other current liabilities	2,511			2,790
Total current liabilities	74,115			66,996
Long-term debt and capital lease obligations, less current portion	71,918			70,467
Non-current deferred tax liabilities	16,598			18,038
Long-term accrued claims	30,594			32,068
Long-term deferred purchase price	—			2,333
Other long-term liabilities	4,482			4,899
Total liabilities	197,707			194,801
Commitments and contingencies
Stockholders' equity:
Common stock	3			3
Additional paid-in capital	248,698			247,467
Accumulated other comprehensive loss	(1,190		)	(1,118		)
Accumulated deficit	(105,958		)	(116,474		)
Total Cross Country Healthcare stockholders' equity	141,553			129,878
Noncontrolling interest	466			454
Total stockholders' equity	142,019			130,332
Total liabilities and stockholders' equity	$	339,726		$	325,133

See accompanying notes to the condensed consolidated financial statements

1

CROSS COUNTRY HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, amounts in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Revenue from services	$	195,692		$	188,944		$	574,273		$	429,691
Operating expenses:
Direct operating expenses	144,206			141,667			427,387			319,528
Selling, general and administrative expenses	39,227			40,858			121,284			99,480
Bad debt expense	549			257			771			721
Depreciation	953			1,005			2,902			2,796
Amortization	982			1,011			2,947			2,580
Loss on sale of business	2,184			—			2,184			—
Acquisition and integration costs	584			2,383			742			5,425
Restructuring costs	140			—			1,147			755
Total operating expenses	188,825			187,181			559,364			431,285
Income (loss) from operations	6,867			1,763			14,909			(1,594		)
Other expenses (income):
Interest expense	1,654			1,832			5,163			2,376
Loss on derivative liability	2,894			7,308			385			7,308
Other (income) expense, net	(100		)	(62		)	(30		)	66
Income (loss) before income taxes	2,419			(7,315		)	9,391			(11,344		)
Income tax (benefit) expense	(2,732		)	169			(1,490		)	104
Consolidated net income (loss)	5,151			(7,484		)	10,881			(11,448		)
Less: Net income attributable to noncontrolling interest in subsidiary	142			118			365			118
Net income (loss) attributable to common shareholders	$	5,009		$	(7,602	)	$	10,516		$	(11,566	)
Net income (loss) per share attributable to common shareholders - Basic	$	0.16		$	(0.24	)	$	0.33		$	(0.37	)
Net income (loss) per share attributable to common shareholders - Diluted	$	0.16		$	(0.24	)	$	0.33		$	(0.37	)
Weighted average common shares outstanding:
Basic	31,541			31,245			31,412			31,165
Diluted	32,168			31,245			32,048			31,165

See accompanying notes to the condensed consolidated financial statements

2

CROSS COUNTRY HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, amounts in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Consolidated net income (loss)	$	5,151		$	(7,484	)	$	10,881		$	(11,448	)
Other comprehensive income, before income tax:
Unrealized foreign currency translation (loss) gain	(54		)	(34		)	(72		)	58
Other comprehensive (loss) income, before income taxes	(54		)	(34		)	(72		)	58
Income tax expense related to items of other comprehensive income	—			—			—			162
Other comprehensive loss, net of tax	(54		)	(34		)	(72		)	(104		)
Comprehensive income (loss)	5,097			(7,518		)	10,809			(11,552		)
Less: Net income attributable to noncontrolling interest in subsidiary	142			118			365			118
Comprehensive income (loss) attributable to common shareholders	$	4,955		$	(7,636	)	$	10,444		$	(11,670	)

See accompanying notes to the condensed consolidated financial statements

3

CROSS COUNTRY HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, amounts in thousands)

	Nine Months Ended
	September 30,
	2015			2014
Cash flows from operating activities
Consolidated net income (loss)	$	10,881		$	(11,448	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	5,849			5,376
Amortization of debt discount and debt issuance costs	1,411			590
Provision for allowances	1,550			721
Deferred income tax (benefit) expense	(1,387		)	2,637
Loss on derivative liability	385			7,308
Equity compensation	1,773			958
Loss on sale of business	2,184			—
Other non-cash costs	20			99
Changes in operating assets and liabilities:
Accounts receivable	(13,927		)	(11,201		)
Prepaid expenses and other assets	1,779			267
Income taxes	(407		)	(3,755		)
Accounts payable and accrued expenses	7,825			3,242
Other liabilities	930			2,150
Net cash provided by (used in) operating activities	18,866			(3,056		)
Cash flows from investing activities
Proceeds from sale of businesses	7,500			3,750
Acquisition, net of cash acquired	(123		)	(44,911		)
Transaction costs related to sale of business	(338		)	—
Purchases of property and equipment	(1,790		)	(3,778		)
Net cash provided by (used in) investing activities	5,249			(44,939		)
Cash flows from financing activities
Proceeds from borrowing on Second Lien Term Loan	—			28,875
Proceeds from borrowing on Convertible Note	—			24,063
Repayments on Senior Secured Asset-Based revolving credit facility	(42,300		)	(57,004		)
Borrowings under Senior Secured Asset-Based revolving credit facility	38,800			53,105
Repayments of capital lease obligations	(80		)	(96		)
Repurchase of stock for tax withholdings	(543		)	(245		)
Cash payment to noncontrolling shareholder	(353		)	—
Debt issuance costs	—			(1,053		)
Net cash (used in) provided by financing activities	(4,476		)	47,645
Effect of exchange rate changes on cash	(50		)	27
Change in cash and cash equivalents	19,589			(323		)
Cash and cash equivalents at beginning of period	4,995			8,055
Cash and cash equivalents at end of period	$	24,584		$	7,732

See accompanying notes to the condensed consolidated financial statements

4

CROSS COUNTRY HEALTHCARE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1. ORGANIZATION AND BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements include the accounts of Cross Country Healthcare, Inc. and its direct and indirect wholly-owned subsidiaries (collectively, the Company). The condensed consolidated financial statements include all assets, liabilities, revenue, and expenses of InteliStaf of Oklahoma, LLC, which is controlled by the Company but not wholly owned. The Company records the ownership interest of the noncontrolling shareholder as noncontrolling interest in subsidiary. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all entries necessary for a fair presentation of such unaudited condensed consolidated financial statements have been included. These entries consisted of all normal recurring items.

Subsidiary Changes

• During the third quarter of 2015, the Company completed the sale of its education seminars business, Cross Country Education, LLC. See Note 4 - Disposal.

• During the third quarter, Jamestown Indemnity, Ltd., a wholly-owned Cayman Island captive company, was voluntarily liquidated and, as a result, MDA now self-insures $0.5 million for each of its professional liability claims.

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. These operating results are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. The December 31, 2014 condensed consolidated balance sheet included herein was derived from the December 31, 2014 audited consolidated balance sheet included in the Company’s Annual Report on Form 10-K.

Certain prior year amounts have been reclassified to conform to the current period presentation. See Note 12 – Segment Data.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the valuation of accounts receivable, goodwill and intangible assets, other long-lived assets, share-based compensation, accruals for health, workers’ compensation and professional liability claims, valuation of deferred tax assets, derivative liability, legal contingencies, future contingent considerations, income taxes and sales and other non-income tax liabilities. Accrued insurance claims and reserves include estimated settlements from known claims and actuarial estimates for claims incurred but not reported. Actual results could differ from those estimates.

Property and Equipment

During the nine months endedSeptember 30, 2015, the Company wrote off approximately $9.1 million of fully depreciated property and equipment.

Restructuring Costs

During the nine months endedSeptember 30, 2015, the Company incurred restructuring charges related to its cost optimization project. Restructuring costs totaled $1.1 million, including $0.6 million for exit costs related to lease consolidations and $0.5 million under the terms of the Company's ongoing benefit arrangement. The Company paid $0.2 million for exit liabilities and $0.4 million in post-employment benefits. As of September 30, 2015, the balance in the accrued restructuring liability was $0.5

5

million, including $0.1 million of post-employment benefits and $0.4 million for exit liabilities. There were no restructuring liabilities included on the condensed consolidated balance sheets as of December 31, 2014.

Recently Adopted Accounting Pronouncement

In January 2014, the Company adopted Accounting Standards Update (ASU) No. 2014-08 (ASU 2014-08), Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 provides new criteria for reporting discontinued operations and specifically indicates a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that will have a major effect on the Company’s operations and financial results. The new guidance also requires expanded disclosures for discontinued operations. In the third quarter of 2015, the Company disposed of a business that did not meet the criteria for presentation as discontinued operations. See Note 4 - Disposal for further information.

3.    ACQUISITIONS

Medical Staffing Network

On June 30, 2014, the Company acquired substantially all of the assets and certain liabilities of Medical Staffing Network Healthcare, LLC (MSN) for an aggregate purchase price of $47.1 million, net of $1.0 million cash acquired. The Company paid $44.6 million, net of cash acquired, and an additional $2.5 million was deferred and is due to the seller 21 months from the acquisition date, less any COBRA expenses incurred by the Company on behalf of former MSN employees over that period. The Company has incurred $0.3 million in COBRA expenses since the MSN acquisition and has a remaining liability of $2.2 million in the line item deferred purchase price on its condensed consolidated balance sheet.

The Company financed the purchase price using $55.0 million in new subordinated debt consisting of a $30.0 million, 5-year term loan and $25.0 million of convertible notes having a 6-year maturity and a conversion price of $7.10. The Company also amended its loan agreement with Bank of America. N.A. to increase its borrowing capacity under its senior secured asset-based revolving credit facility from $65.0 million to $85.0 million. See Note 8 - Debt for further information.

The acquisition has been accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, Business Combinations, using the acquisition method of accounting. The results of the acquisition's operations are included in the consolidated statements of operations from July 1, 2014. The acquisition results are substantially reported through the Company's Nurse and Allied Staffing business segment. As such, the associated goodwill related to the acquisition of MSN is fully allocated to Nurse and Allied Staffing.

The Company has integrated the acquired business into its current operations, including the consolidation of branch and corporate offices and therefore, it is impracticable to separate its results.  Acquisition and integration costs as presented on the condensed consolidated statements of operations include exit costs associated with redundant facilities and ongoing post-employment termination costs. Acquisition and integration costs in the three and nine months ended September 30, 2015 are primarily related to due diligence efforts related to the Mediscan acquisition, which closed on October 30, 2015.  See Note 17 - Subsequent Event.

Acquisition and Integration Costs

Reconciliations of the beginning and ending acquisition and integration liability balances are presented below:

6

	Three Months Ended						Nine Months Ended
	September 30, 2015						September 30, 2015
	(amounts in thousands)
	Ongoing Benefit Costs			Exit Costs			Ongoing Benefit Costs			Exit Costs
Balance at beginning of period	$	140		$	421		$	944		$	868
Charged to operations	5			—			75			88
Reclassifications (a)	—			(255		)	—			(255		)
Payments	(62		)	(88		)	(936		)	(623		)
Balance at end of period	$	83		$	78		$	83		$	78

(a) Exit liability has been reduced as a result of a lease amendment and has been reclassified to deferred rent, which will be amortized over the remaining lease term.

Pro Forma Financial Information

The following unaudited pro forma financial information approximates the consolidated results of operations of the Company as if the MSN acquisition had occurred as of January 1, 2014, after giving effect to certain adjustments, including additional interest expense on the amount the Company borrowed on the date of the transaction, the amortization of acquired intangible assets, and the elimination of certain expenses that will not be recurring in post-acquisition periods, net of an estimated income tax impact. These adjustments include removing transaction-related expenses of approximately $6.2 million in 2014 related to the MSN acquisition. These results are not necessarily indicative of future results as they do not include incremental investments in support functions, elimination of costs for integration or operating synergies, estimates of the changes in the fair value of the embedded derivative in our Convertible Notes or an estimate of any impact on interest expense resulting from the operating cash flow of the acquired business, among other adjustments that could be made in the future but are not factually supportable on the date of the transaction.

	Nine Months Ended
	September 30, 2014
	(unaudited, amounts in thousands)
Revenue from services	$	551,761
Net loss	$	(9,688	)
Net loss per share attributable to common shareholders - Basic	$	(0.31	)
Net loss per share attributable to common shareholders - Diluted	$	(0.31	)

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4.    DISPOSAL

Cross Country Education

On July 21, 2015, the Company's Board of Directors approved an agreement to sell the Company's education seminars business, Cross Country Education, LLC ("CCE"). CCE provided in-person seminars to healthcare professionals and was non-core to the Company’s business. The Company used the net proceeds from the transaction to finance the Mediscan acquisition in the fourth quarter of 2015. See Note 17 - Subsequent Event. Since the disposal of the education seminars business does not represent a strategic shift that will have a major effect on the Company’s operations and financial results, it has not been reflected as discontinued operations.

On July 27, 2015, the Company entered into an Agreement and Plan of Merger to sell its wholly-owned subsidiary, CCE, to a third party, PESI, Inc. ("Buyer"). On August 31, 2015, the Company completed the sale of CCE to the Buyer. The Company received $8.0 million in cash, subject to a net working capital adjustment, of which $0.5 million will be held in escrow for a period of 12 months following the closing to provide partial security to Buyer in the event of any breach of the representations, warranties and covenants of the Company. The Company recorded the $0.5 million indemnity escrow funds as an escrow receivable.

The purchase price also included an earn out of up to $0.5 million related to the performance of CCE for the year ended 2015, which is unlikely to be made. See Note 10 - Fair Value Measurements.

The operating results of CCE were included in the Other Human Capital Management Services segment. See Note 12 - Segment Data for further information.

The Company has agreed that for a period of five years from the closing date, it will not engage in the business of providing education seminars as such business is presently conducted by CCE, or solicit customers of CCE for purposes of diverting their business from CCE.

The Company recognized a pre-tax loss of $2.2 million related to the sale of the business, which is included in income (loss) from operations in its condensed consolidated statements of operations for the three and nine months ended September 30, 2015.

5. COMPREHENSIVE INCOME (LOSS)

Total comprehensive income (loss) includes net income or loss and foreign currency translation adjustments, net of any related deferred taxes. Certain of the Company’s foreign subsidiaries use their respective local currency as their functional currency. In accordance with the Foreign Currency Matters Topic of the FASB ASC,assets and liabilities of these operations are translated at the exchange rates in effect on the balance sheet date. Income statement items are translated at the average exchange rates for the period. The cumulative impact of currency fluctuations related to the balance sheet translation is included in accumulated other comprehensive loss in the accompanying condensed consolidated balance sheets and was approximately $1.2 million and $1.1 million, respectively, at September 30, 2015 and December 31, 2014.

There was no income tax impact related to foreign currency translation adjustments for the three and nine months ended September 30, 2015 and the three months endedSeptember 30, 2014. During the nine months ended September 30, 2014, the Company's condensed consolidated statements of other comprehensive income (loss) included income tax expense of $0.2 million related to foreign currency translation adjustments.

6. EARNINGS PER SHARE

In accordance with the requirements of the Earnings Per Share Topic of the FASB ASC, basic earnings per share is computed by dividing net income available to common shareholders (numerator) by the weighted average number of vested unrestricted common shares outstanding during the period (denominator). Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period including stock appreciation rights and options and unvested restricted stock, as calculated utilizing the treasury stock method, and Convertible Notes using the if-converted method.

8

The following table sets forth the components of the numerator and denominator for the computation of the basic and diluted earnings per share:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015		2014			2015		2014
	(amounts in thousands, except per share data)
Numerator:
Net income (loss) attributable to common shareholders	$	5,009	$	(7,602	)	$	10,516	$	(11,566	)
Denominator:
Basic weighted average common shares	31,541		31,245			31,412		31,165
Effective of dilutive shares:
Share-based awards	627		—			636		—
Diluted weighted average common shares outstanding	32,168		31,245			32,048		31,165
Net income (loss) per share attributable to common shareholders - Basic	$	0.16	$	(0.24	)	$	0.33	$	(0.37	)
Net income (loss) per share attributable to common shareholders - Diluted	$	0.16	$	(0.24	)	$	0.33	$	(0.37	)

For the periods presented, no tax benefits have been assumed in the weighted average share calculation due to a full valuation allowance on the Company's deferred tax assets.

The following table represents the securities that could potentially dilute net income per share attributable to common shareholders in the future that were not included in the computation of diluted net income per share attributable to common shareholders because to do so would have been anti-dilutive for the periods presented:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2015	2014	2015	2014
Convertible notes and share-based awards	3,521,126	3,748,469	3,521,126	3,818,614

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7.    GOODWILL AND OTHER INTANGIBLES

As of September 30, 2015 and December 31, 2014, the Company had the following acquired intangible assets:

	September 30, 2015						December 31, 2014
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(amounts in thousands)
Intangible assets subject to amortization:
Databases	$	22,425	$	13,727	$	8,698	$	22,425	$	12,893	$	9,532
Customer relationships	42,004		19,953		22,051		42,004		17,870		24,134
Non-compete agreements	3,603		3,476		127		3,603		3,446		157
	$	68,032	$	37,156	$	30,876	$	68,032	$	34,209	$	33,823
Intangible assets not subject to amortization:
Goodwill					$	80,758					$	90,647
Trade names					38,201						38,201
					$	118,959					$	128,848

The changes in the carrying amount of goodwill by segment are as follows:

	Nurse And Allied Staffing			Physician Staffing		Other Human Capital Management Services			Total
	(amounts in thousands)
Balances as of December 31, 2014
Aggregate goodwill acquired	$	287,667		$	43,405	$	19,307		$	350,379
Accumulated impairment loss	(259,732		)	—		—			(259,732		)
Goodwill, net of impairment loss	27,935			43,405		19,307			90,647
Changes to aggregate goodwill in 2015
Sale of CCE (a)	—			—		(9,889		)	(9,889		)
Balances as of September 30, 2015
Aggregate goodwill acquired	287,667			43,405		19,307			350,379
Sale of CCE (a)	—			—		(9,889		)	(9,889		)
Accumulated impairment loss	(259,732		)	—		—			(259,732		)
Goodwill, net of impairment loss	$	27,935		$	43,405	$	9,418		$	80,758

(a)    See Note 4 - Disposal for further information.

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8.    DEBT

At September 30, 2015 and December 31, 2014, long-term debt consists of the following:

	September 30,			December 31,
	2015			2014
	(amounts in thousands)
Senior Secured Asset-Based, interest 2.61% at December 31, 2014	$	—		$	3,500
Second Lien Term Loan, net of unamortized discount of $843 and $1,011 at September 30, 2015 and December 31, 2014, respectively, interest 5.75% and 7.50% at September 30, 2015 and December 31, 2014, respectively	29,157			28,989
Convertible Notes, net of unamortized discount of $6,094 and $7,053 at September 30, 2015 and December 31, 2014, respectively, fixed rate interest of 8.00%	18,906			17,947
Convertible Notes derivative liability	23,821			23,436
Capital lease obligations	122			202
Total debt	72,006			74,074
Less: Current portion	(88		)	(3,607		)
Long-term debt	$	71,918		$	70,467

Senior Credit Facility

As of September 30, 2015, the First Lien Loan Agreement, with a termination date of June 30, 2017, provides for: a senior secured asset-based revolving credit facility in the aggregate principal amount of up to $85.0 million, which includes a subfacility for swingline loans up to an amount equal to 10% of the aggregate Revolver Commitments, as defined in the agreement, and a $35.0 million subfacility for standby letters of credit. 

The revolving credit facility can be used to provide ongoing working capital and for other general corporate purposes of the Company and its subsidiaries. As of September 30, 2015, the interest rate spreads and fees under the First Lien Loan Agreement are based on LIBOR plus 1.50% or Base Rate plus 0.50%. The LIBOR and Base Rate margins are subject to performance pricing adjustments, pursuant to a pricing matrix based on the Company’s excess availability under the revolving credit facility, and could increase by 200 basis points if an event of default exists. The Company is required to pay a monthly commitment fee on the average daily unused portion of the revolving loan facility, which, as of September 30, 2015, was 0.375%.

As of September 30, 2015, the Gross Availability, as defined in the First Lien Loan Agreement, was approximately $70.7 million based on the Company's accounts receivable balance as of August 31, 2015. The Company had $23.5 million letters of credit outstanding and no borrowings drawn under its revolving credit facility, leaving $47.2 million available as of September 30, 2015. The letters of credit relate to the Company’s workers’ compensation and professional liability insurance policies.

Second Lien Term Loan

The Second Lien Term Loan Agreement provides for a five-year senior secured term loan facility in an aggregate principal amount of $30.0 million (the loans thereunder, the Second Lien Term Loan).

On July 22, 2015, the Company entered into an amendment to its Second Lien Term Loan. Under the terms of the amendment, the interest rate on the Second Lien Term Loan was modified at no cost from LIBOR (defined as the 3-month London interbank offered rate for U.S. dollars, adjusted for customary Eurodollar reserve requirements, if any, and subject to a1% floor) plus 6.50% to LIBOR (1% floor) plus a rate based on the Company's total net leverage ratio, as defined in the table that follows. As of September 30, 2015, the Second Lien Term Loan bore interest at a rate equal to adjusted LIBOR(1% floor) plus 4.75%. The interest rate is subject to an increase by 200 basis points if an event of default exists under the Second Lien Term Loan Agreement.

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Pricing Level	Total Net Leverage Ratio	Applicable Margin
I	Less than 2.50:1.00	4.75%
II	Greater than or equal to 2.50:1.00 but less than or equal to 3.25:1.00	5.25%
III	Greater than 3.25:1.00  but less than or equal to 4:00:1.00	5.75%
IV	Greater than 4.00:1.00	6.50%
Above terms defined in accordance with the Second Lien Term Loan Agreement.

The Company may, at its option at any time, prepay the Second Lien Term Loan in whole or in part at the redemption prices set forth therein, which range from 103% of the principal amount thereof for prepayments during the period July 1, 2015 through June 30, 2016, 102% of the principal amount thereof for prepayments during the period July 1, 2016 through June 30, 2017, and 100% of the principal amount thereof for prepayments after such date.

Subject to certain exceptions, the Second Lien Term Loan is required to be prepaid with: (a) 50% of excess cash flow (as defined in the Second Lien Term Loan Agreement) above $5.0 million for each fiscal year of the Company (commencing with the fiscal year ending December 31, 2015), provided that voluntary prepayments of the Second Lien Term Loan made during such fiscal year will reduce the amount of excess cash flow prepayments required for such fiscal year on a dollar-for-dollar basis; (b) 100% of the net cash proceeds of all asset sales or other dispositions of property by the Company and its subsidiaries, as set forth in the agreement, in excess of a defined threshold and subject to the right of the Company to reinvest such proceeds within 12 months; (c) 100% of the net cash proceeds of issuances of debt offerings of the Company and its subsidiaries (except the net cash proceeds of any permitted debt); and (d) 50% of the net cash proceeds of equity offerings of the Company.

The Second Lien Term Loan Agreement contains customary representations, warranties, and affirmative covenants. Among other things, the agreement also includes a financial covenant limiting the Company’s maximum “debt” to “EBITDA” (each, as defined therein) ratio to no greater than 4.50:1.00, subject to customary equity cure rights. As of September 30, 2015, the Company was in compliance with the financial covenants and other covenants contained in the agreement. The "debt" to "EBITDA" ratio was 0.9:1.00 as of September 30, 2015.

Convertible Notes

As of September 30, 2015, the Convertible Notes are convertible at the option of the holders thereof at any time into shares of the Company’s common stock, par value $0.0001 per share (Common Stock), at an initial conversion price of $7.10 per share, or 3,521,126 shares of Common Stock. After three years from the issuance date, the Company has the right to force a conversion of the Convertible Notes if the volume-weighted average price (VWAP) per share of its Common Stock exceeds 125% of the then conversion price for 20 days of a 30 day trading period. The conversion price is subject to adjustment pursuant to customary weighted average anti-dilution provisions including adjustments for the following: Common Stock dividends or distributions; issuance of any rights, warrants of options to acquire Common Stock; distributions of property; tender offer or exchange offer payments; cash dividends; or certain issuances of Common Stock at less than the conversion price. Upon conversion of the Convertible Notes, the Company will exchange, for the applicable conversion amount thereof a number of shares of Common Stock, with no maximum, on amount, equal to the amount determined by dividing (i) such conversion amount by (ii) the conversion price in effect at the time of conversion. No fractional shares of Common Stock will be issued upon conversion of the Conversion Notes. In lieu of fractional shares, the Company shall pay cash in respect of each fractional share equal to such fractional amount multiplied by the 30-day VWAP as of the closing of business on the Business Day immediately preceding the conversion date as well as any unpaid accrued interest.

The Convertible Notes bear interest at a rate of 8.00% per annum, payable in quarterly cash installments; provided, however, that, at the Company’s option, up to 4.00% of the interest payable may be “paid-in-kind” through a quarterly addition of such “paid-in-kind” interest amount to the principal amount of the Convertible Notes. The Convertible Notes will mature on June 30, 2020, unless earlier repurchased, redeemed or converted. Subject to certain exceptions, the Company is not permitted to redeem the Convertible Notes until June 30, 2017. If the Company redeems the Convertible Notes on or after June 30, 2017, the Company is required to pay a premium of 15% of the amount of principal of the Convertible Notes redeemed.

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If the Convertible Notes are redeemed prior to June 30, 2017, pursuant to a Prohibited Transaction, as defined by the agreement, the Company is required to pay a premium equal to the greater of (i) the sum of (a) the amount of principal of the Convertible Notes redeemed, plus (b) the accrued but unpaid interests on the principal amount so redeemed to the date of the redemption, plus (c) a “make whole” amount (described below) and (ii) the sum of (x) the average 30-day VWAP per share of Common Stock multiplied by the number of shares of Common Stock that the redeemed Convertible Notes are then convertible into, with no maximum, and (y) the accrued but unpaid interest on the Convertible Notes. The “make whole” amount is equal to the excess, if any, of (1) the present value at the date of redemption of (A) 115% of the principal amount of the Convertible Notes redeemed, plus (B) all remaining scheduled interest due on the principal amount of the notes being redeemed through June 30, 2017 computed using a discount rate equal to the Treasury rate as of the date of redemption plus 50 basis points over (2) the outstanding principal amount of the Convertible Notes then redeemed.

9.    CONVERTIBLE NOTES DERIVATIVE LIABILITY

Derivative financial instruments, as defined in ASC 815, Accounting for Derivative Financial Instruments and Hedging Activities, consist of financial instruments or other contracts that contain a notional amount and one or more underlyings (e.g. interest rate, security price or other variable), require no initial net investment and permit net settlement. Derivative financial instruments may be free-standing or embedded in other financial instruments. Further, derivative financial instruments are initially, and subsequently, measured at fair value and recorded as liabilities or, in rare instances, assets.

The Company does not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, the Company issued Convertible Notes with features that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or (iii) may be net-cash settled by the counterparty. As required by ASC 815, in certain instances, these instruments are required to be carried as derivative liabilities, at fair value, in the financial statements.

The Convertible Notes issued in conjunction with the MSN acquisition are subject to anti-dilution adjustments that allow for the reduction in the Conversion Price, as defined in the agreement, in the event the Company subsequently issues equity securities including Common Stock or any security convertible or exchangeable for shares of Common Stock for a price less than the current conversion price. In addition, the Convertible Notes allow the issuer to exercise optional redemption features and the holder to exercise an offer to purchase feature, under certain conditions. The Company accounted for the conversion option in accordance with ASC 815. Since this conversion feature is not considered to be solely indexed to the Company’s own stock the derivative was recorded as a liability.

The Company’s Convertible Notes derivative liability is measured at fair value using a trinomial lattice model. The optional redemption features, along with the offer to purchase features are incorporated into the valuation model. Inputs into the model require estimates, including such items as estimated volatility of the Company's stock, estimated credit risk of the Company, estimated probabilities of change of control and issuance of additional financing, risk-free interest rate, and the estimated life of the financial instruments being fair valued. In addition, since the conversion price contains an anti-dilution adjustment, the probability that the Conversion Price of the Notes would decrease as the share price decreased is incorporated into the valuation calculation.

The inputs into the valuation model are as follows:

	September 30, 2015
Closing share price	$13.61
Conversion price	$7.10
Risk-free rate	1.34%
Expected volatility	40%
Dividend yield	—%
Expected life	4.75

The fair value of this derivative liability is primarily determined by fluctuations in our stock price. As of September 30, 2015, a $1 increase or decrease in our stock price would result in a corresponding increase or decrease of approximately $3.3 million in the fair value of the derivative liability, and a 1% increase or decrease in interest rates would result in a corresponding increase or decrease of approximately $0.9 million in the fair value of the derivative liability. These fluctuations result in a current period gain or loss that is presented on the condensed consolidated statements of operations as (gain) loss on derivative liability.

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10. FAIR VALUE MEASUREMENTS

The Fair Value Measurements and Disclosures Topic of the FASB ASC defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Fair Value Measurements and Disclosures Topic also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Items Measured at Fair Value on a Recurring Basis

At September 30, 2015 and December 31, 2014, the Company’s financial assets/liabilities required to be measured on a recurring basis were: contingent consideration receivable, deferred compensation liability included in other long-term liabilities, and Convertible Notes derivative liability included in long-term debt and capital lease obligations on the condensed consolidated balance sheets.

Contingent consideration receivable, earn out—The earn out related to the Company's sale of CCE was treated as a contingent consideration receivable for accounting purposes. The Company utilized Level 3 inputs to value the contingent consideration receivable as significant unobservable inputs were used in the calculation of its fair value and related to the future performance of the disposed business. The fair value of the contingent consideration receivable will be adjusted to its fair value on a quarterly basis with any adjustment to the related receivable and the loss on the sale of the business. The future performance of the disposed business will directly impact the contingent consideration that could be paid to the Company. The Company assigned no fair value to this earn out as of September 30, 2015 based on the information available to the Company. See Note 4 - Disposal.

Deferred compensation—The Company utilizes Level 1 inputs to value its deferred compensation liability. The Company’s deferred compensation liability is measured using publicly available indices that define the liability amounts, as per the plan documents.

Convertible Notes derivative liability—The Company utilizes Level 3 inputs to value its Convertible Notes derivative liability. See Note 9 - Convertible Notes Derivative Liability.

The table which follows summarizes the estimated fair value of the Company’s financial assets and liabilities measured on a recurring basis as of September 30, 2015 and December 31, 2014:

Fair Value Measurements

	September 30, 2015		December 31, 2014
Financial Liabilities:	(amounts in thousands)
(Level 1)
Deferred compensation	$	1,390	$	1,510
(Level 3)
Convertible Notes derivative liability	$	23,821	$	23,436

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The table which follows reconciles the opening balances to the closing balances for fair value measurements of the Convertible Notes derivative liability categorized within Level 3 of the fair value hierarchy:

	Three Months Ended		Nine Months Ended
	September 30, 2015		September 30, 2015
	(amounts in thousands)
Beginning Balance	$	20,927	$	23,436
Purchases / Sales	—		—
Settlements	—		—
Valuation adjustment (a)	2,894		385
Ending Balance	$	23,821	$	23,821

_______________

(a) Loss on the valuation of the derivative liability is included as a line item as part of other expenses (income) on the condensed consolidated statements of operations. See Note 9 - Convertible Notes Derivative Liability for further information.

Items Measured at Fair Value on a Non-Recurring Basis

Goodwill, trade names, and other identifiable intangible assets are reviewed for impairment annually, and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the testing performed indicates that impairment has occurred, the Company records a non-cash impairment charge for the difference between the carrying amount of the goodwill or other intangible assets and the implied fair value of the goodwill or other intangible assets in the period the determination is made.

As of October 1, 2014, in conjunction with the annual testing of indefinite-lived intangible assets not subject to amortization,

the Company recorded a pretax non-cash impairment charge of approximately $10.0 million related to its Medical Doctor Associates (MDA) trade names. The Company reduced its long-term revenue forecast for these businesses as part of its forecasting process in the fourth quarter and as a result, the calculation of estimated fair value was less than the carrying amount of the trade names, resulting in an impairment charge.

The table below presents the fair value of the MDA trade names as of December 31, 2014.

Fair Value Measurements
	December 31, 2014
	(amounts in thousands)
(Level 3)
MDA Trade names	$	17,699

Other Fair Value Disclosures

Financial instruments not measured or recorded at fair value in the accompanying condensed consolidated balance sheets consist of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and short and long-term debt. The estimated fair value of accounts receivable, accounts payable and accrued expenses approximate their carrying amount due to the short-term nature of these instruments. The estimated fair value of the Company's debt was calculated using discounted cash flow analysis and appropriate valuation methodologies using Level 2 inputs from available market information.

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The following table represents the carrying amounts and estimated fair value of the Company’s significant financial instruments that were not measured at fair value:

	September 30, 2015				December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities:			(amounts in thousands)
(Level 2)
Second Lien Term Loan, net (a)	$	29,157	$	30,600	$	28,989	$	29,900
Convertible Notes, net (a)	$	18,906	$	23,000	$	17,947	$	19,200
Senior Secured Asset-Based Loan (b)	$	—	$	—	$	3,500	$	3,500

 _______________

(a) The Second Lien Term Loan and Convertible Notes are reported at their carrying value in the accompanying condensed consolidated balance sheets. The Company determined their fair value, as presented in the table using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issuances with similar remaining years to maturity, adjusted for credit risk.

(b) Carrying value of the Senior Secured Asset-Based Loan approximates estimated fair value based on the short-term nature and the pricing at varying interest rates.

Concentration of Risk

The Company has invested its excess cash in highly-rated overnight funds and other highly-rated liquid accounts. The Company has been exposed to credit risk associated with these investments. The Company minimizes its credit risk relating to these positions by monitoring the financial condition of the financial institutions involved and by primarily conducting business with large, well established financial institutions and diversifying its counterparties.

The Company generally does not require collateral and mitigates its credit risk by performing credit evaluations and monitoring at-risk accounts. The allowance for doubtful accounts represents the Company’s estimate of uncollectible receivables based on a review of specific accounts and the Company’s historical collection experience. The Company writes off specific accounts based on an ongoing review of collectability as well as past experience with the customer. The Company’s contract terms typically require payment between 15 to 60 days from the date services are provided and are considered past due based on the particular negotiated contract terms. Overall, based on the large number of customers in differing geographic areas, primarily throughout the United States and its territories, the Company believes the concentration of credit risk is limited.

11. STOCKHOLDERS’ EQUITY

Stock Repurchase Program

During both the nine months ended September 30, 2015 and 2014, the Company did not repurchase any shares of its Common Stock under its February 2008 Board authorization.

As of September 30, 2015, the Company may purchase up to an additional 942,443 shares of Common Stock under the February 2008 Board authorization, subject to certain conditions in the Company's First Lien Loan Agreement and Second Lien Term Loan Agreement. Subject to certain conditions as described in its First Lien Loan Agreement entered into on January 9, 2013, the Company may repurchase up to an aggregate amount of $5.0 million of its Equity Interests. At September 30, 2015, the Company had 31,552,231 shares of Common Stock outstanding.

Share-Based Payments

During the nine months endedSeptember 30, 2015, 220,160 of restricted stock awards and 163,340 of performance stock awards were granted under the 2014 Omnibus Incentive Plan to the Company's non-employee Directors and management team. In 2015, the Company changed the timing of its annual grants to management from June to March. Pursuant to the 2014 Omnibus Plan the number of target shares that are issued for performance-based stock awards are determined based on the level of attainment of the targets. If the minimum level of performance is attained for the 2015 awards, restricted stock will be issued with a vesting date of December 31, 2017, subject to the employee’s continuing employment. During the first quarter of 2015, the Company's Compensation Committee of the Board of Directors approved a 41.4% level of attainment for the 2014

16

performance-based share awards, resulting in the issuance of 86,661 shares of restricted stock that will vest on December 31, 2016.

The following table summarizes restricted stock awards and performance stock awards activity for the nine months ended September 30, 2015:

	Restricted Stock Awards				Performance Stock Awards
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Target Shares		Weighted Average Grant Date Fair Value
Unvested restricted stock awards, January 1, 2015	659,650		$	5.72	218,175		$	5.82
Granted	220,160		$	11.52	163,340		$	11.86
Vested	(239,062	)	$	5.75	—		$	—
Forfeited	(50,618	)	$	6.44	(145,541	)	$	6.14
Unvested restricted stock awards, September 30, 2015	590,130		$	7.82	235,974		$	9.80

During the three and nine months ended September 30, 2015, $0.6 million and $1.8 million, respectively, was included in selling, general and administrative expenses related to share-based payments, and a net of 10,330 and 190,631 shares, respectively, of Common Stock were issued upon the vesting of restricted stock.

During the three and nine months ended September 30, 2014, $0.4 million and $1.0 million, respectively, was included in selling, general and administrative expenses related to share-based payments. In addition, a net of 5,654 and 141,188 restricted shares of Common Stock vested in the three and nine months ended September 30, 2014, respectively.

12. SEGMENT DATA

In accordance with the Segment Reporting Topic of the FASB ASC, the Company reports three business segments – Nurse and Allied Staffing, Physician Staffing, and Other Human Capital Management Services. The Company manages and segments its business based on the services it offers to its customers as described below:

● Nurse and Allied Staffing – Nurse and Allied Staffing provides traditional staffing, including temporary and permanent placement of travel nurses and allied professionals and branch-based local nurses and allied staffing. Its clients include: public and private acute-care and non-acute care hospitals, government facilities, schools, outpatient clinics, ambulatory care facilities, retailers, and many other healthcare providers throughout the U.S.

● Physician Staffing – Physician Staffing provides physicians in many specialties, certified registered nurse anesthetists (CRNAs), nurse practitioners (NPs), and physician assistants (PAs) under the Company's MDA and Saber-Salisbury brands as independent contractors on temporary assignments throughout the U.S. at various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations.

● Other Human Capital Management Services – Subsequent to the sale of CCE, the education seminars business, on August 31, 2015, Other Human Capital Management Services includes retained and contingent search services for physicians and healthcare executives within the U.S.

The Company’s management evaluates performance of each segment primarily based on revenue and contribution income. The Company’s management does not evaluate, manage or measure performance of segments using asset information; accordingly, total asset information by segment is not prepared or disclosed. The information in the following table is derived from the segments’ internal financial information as used for corporate management purposes. Certain corporate expenses are not allocated to and/or among the operating segments.

17

Information on operating segments and areconciliation to income (loss) from operations for the periods indicated are as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015		2014			2015		2014
	(amounts in thousands)
Revenues:
Nurse and Allied Staffing (a)	$	157,338	$	147,851		$	459,127	$	311,814
Physician Staffing (a)	30,959		31,953			88,100		90,784
Other Human Capital Management Services	7,395		9,140			27,046		27,093
	$	195,692	$	188,944		$	574,273	$	429,691
Contribution income: (b)
Nurse and Allied Staffing (a)	$	16,251	$	12,691		$	39,368	$	25,388
Physician Staffing (a)	3,197		1,471			7,541		4,020
Other Human Capital Management Services	372		(55		)	1,721		(121		)
	19,820		14,107			48,630		29,287
Unallocated corporate overhead	8,110		7,945			23,799		19,325
Depreciation	953		1,005			2,902		2,796
Amortization	982		1,011			2,947		2,580
Loss on sale of business	2,184		—			2,184		—
Acquisition and integration costs	584		2,383			742		5,425
Restructuring costs	140		—			1,147		755
Income (loss) from operations	$	6,867	$	1,763		$	14,909	$	(1,594	)

_______________

(a) Effective January 1, 2015, we reclassified a portion of our business from the Physician Staffing segment to the Nurse and Allied Staffing segment. For the three and nine months ended September 30, 2014, revenue of $0.3 million and $1.5 million, respectively, and contribution income of less than $0.1 million for each period have been reclassified to conform to the current period presentation.

(b) The Company defines contribution income as income or loss from operations before depreciation, amortization, acquisition and integration costs, restructuring costs, impairment charges and corporate expenses not specifically identified to a reporting segment. Contribution income is a financial measure used by management when assessing segment performance and is provided in accordance with ASC 280, Segment Reporting Topic of the FASB ASC. 

13.    COMMITMENTS AND CONTINGENCIES

Commitments

The Company has entered into non-cancelable operating lease agreements for the rental of office space and equipment. Certain of these leases include options to renew as well as rent escalation clauses and in certain cases, incentives from the landlord for rent-free months and premises reductions, and allowances for tenant improvements. The rent escalations and incentives have been reflected in the table below.

Future minimum lease payments, as of September 30, 2015, associated with these agreements with terms of one year or more are as follows:

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Through Year Ending December 31:	(amounts in thousands)
2015	$	1,405
2016	6,331
2017	5,215
2018	3,866
2019	2,907
Thereafter	14,701
	$	34,425

Legal Contingencies

The Company is subject to legal proceedings and claims that arise in the ordinary course of its business. The Company does not believe the outcome of these matters will have a material adverse effect on the Company's business, financial condition, results of operations or cash flows.

Sales and Other State Non-income Tax Liabilities

The Company's sales and other state non-income tax filings are subject to routine audits by authorities in the jurisdictions where it conducts business in the United States which may result in assessments of additional taxes. The Company accrues sales and other non-income tax liabilities based on the Company's best estimate of its probable liability utilizing currently available information and interpretation of relevant tax regulations. Given the nature of the Company's business, significant subjectivity exists as to both whether sales and other state non-income taxes can be assessed on its activity and how the sales tax will ultimately be measured by the relevant jurisdictions. The Company makes a determination for each reporting period whether the estimates for sales and other non-income taxes in certain states should be revised. The expense is included in selling, general and administrative expenses on its condensed consolidated statements of operations and the liability is reflected in sales tax payable as of December 31, 2014 and September 30, 2015, on its condensed consolidated balance sheets.

14. INCOME TAXES

For the periods ended September 30, 2015 and 2014, the Company has calculated its effective tax rate based on year-to-date results (under ASC 740-270-30-18) as opposed to estimating its annual effective tax rate. The Company’s effective tax rate for the three and nine months ended September 30, 2015 was (113.0)% and (15.9)%, respectively, including the impact of discrete items. Excluding discrete items, the Company’s effective tax rate for the three and nine months ended September 30, 2015 was 30.1% and 22.6%, respectively. The effective tax rates are different than the statutory rates primarily due to the impact from amortization of indefinite-lived intangible assets for tax purposes, the partial non-deductibility of certain per diem expenses and international and state minimum taxes, which are partly offset by the reduction in unrecognized tax benefits due to the settlement of certain state examinations. In addition, the effective tax rate in the three and nine months ended September 30, 2015 was impacted by the reversal of valuation allowances related to the sale of CCE.

The Company records valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required often requires significant judgment, including the long-range forecast of future taxable income and the evaluation of tax planning initiatives. Adjustments to the deferred tax valuation allowances are made to earnings in the period when such assessments are made. The Company intends to maintain a valuation allowance until sufficient positive evidence exists to support its reversal.

In the three and nine months ended September 30, 2015, the Company recorded a benefit of $3.5 million from the reversal of valuation allowances associated with the disposal of CCE. Due to the historical losses from the Company's operations, it has recorded a full valuation allowance on its deferred tax assets. In the first quarter of 2014, the Company recorded a non-cash adjustment of $1.7 million primarily related to an overstatement of the valuation allowance established as of December 31, 2013.

As of September 30, 2015, the Company had approximately $3.9 million of unrecognized tax benefits included in other current liabilities and other long-term liabilities ($3.6 million, net of deferred taxes, which would affect the effective tax rate if recognized). During the nine months endedSeptember 30, 2015, the Company had gross increases of $0.7 million to its current year unrecognized tax benefits related to federal and state tax issues and had gross decreases of $0.6 million to its current year unrecognized tax benefits related to settlements.

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The tax years of 2004, 2005, 2008, and 2010 through 2014 remain open to examination by certain taxing jurisdictions to which the Company is subject to tax, other than certain states in which the statute of limitations has been extended.

15.    RELATED PARTY TRANSACTIONS

The Company provides services to hospitals which are affiliated with certain members of the Company’s Board of Directors. Management believes services with related parties were conducted on terms equivalent to those prevailing in an arm's-length transaction. Revenue related to these transactions was $2.8 million and $9.0 million for the three and nine months ended September 30, 2015, respectively. Revenue related to these transactions was $6.0 million and $11.4 million for the three and nine months ended September 30, 2014, respectively. Accounts receivable due from these hospitals at September 30, 2015 and December 31, 2014 were approximately $1.2 million and $2.0 million, respectively.

In connection with the acquisition of MSN, the Company acquired a 68% ownership interest in InteliStaf of Oklahoma, LLC, a joint venture between the Company and a hospital system. The Company generated revenue providing staffing services to the hospital system of $2.6 million and $6.9 million for the three and nine months ended September 30, 2015, respectively. Revenue related to these services was $2.5 million for the three months ended September 30, 2014. At September 30, 2015 and December 31, 2014, the Company had a receivable balance of $0.5 million and $0.9 million, respectively, and a payable balance of $0.1 million at the end of each period, relating to these staffing services.

16.    RECENT ACCOUNTING PRONOUNCEMENTS

In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments. This ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Prior to the issuance of the ASU, entities were required to retrospectively apply adjustments made to provisional amounts recognized in a business combination. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and early adoption is permitted. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In August 2015, the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements to clarify the SEC staff's position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. Given the absence of authoritative guidance within ASU No. 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company expects to adopt this guidance when effective, with no significant impact on its financial position and results of operations.

In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other -Internal-Use Software (Subtopic 350-40), Customers Accounting for Fees Paid in a Cloud Computing Arrangement, to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license element, then the customer should account for the software license element arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments are effective for the Company for annual and interim periods beginning after December 15, 2015. A Company can elect prospective or retrospective adoption and early adoption is permitted. The Company expects to adopt this standard in its first quarter of 2016. The Company is currently evaluating the potential impact of the new guidance.

In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30),Simplifying the Presentation of Debt Issuance Costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This guidance is effective for the Company for fiscal years and interim periods beginning after December 15, 2015, and requires retrospective application. The Company expects to adopt this guidance when effective, and does not expect this guidance to have a significant impact on its financial statements, although it will change the financial statement classification of its debt issuance costs. As of September 30, 2015 and December 31, 2014, the Company had $1.0 million and $1.3 million of net debt issuance costs included on its condensed consolidated balance sheets. Under the new guidance, the net debt issuance costs would offset the carrying amount of the respective debt on the condensed consolidated balance sheets.

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In May 2014, the FASB and the International Accounting Standards Board (IASB) jointly issued ASU No. 2014-9, Revenue from Contracts with Customers(Topic 606), which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (IFRS). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU was originally effective for public entities for annual and interim periods beginning after December 15, 2016. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers(Topic 606), Deferral of the Effective Date, which defers the effective date by one year and allows early adoption for all entities, however not before the original effective date of annual reports beginning after December 15, 2016. Retrospective application is permitted, but not required. The Company is currently evaluating the impact of adopting this guidance on its financial position and results of operations.

17.    SUBSEQUENT EVENT

On October 30, 2015, the Company completed the acquisition of all of the membership interests of New Mediscan II, LLC, Mediscan Diagnostic Services, LLC, and Mediscan Nursing Staffing, LLC (collectively “Mediscan”).  Mediscan provides temporary healthcare staffing and workforce solutions to both the healthcare and education markets - both public and charter schools. One of Mediscan’s founding members, as well as its President, are continuing with the business.

According to the terms of the agreement, the purchase price was $28.0 million in cash and $5.0 million in shares of the Company's Common Stock, subject to a net working capital adjustment. The Sellers are also eligible to receive an earn out based on Mediscan's 2016 and 2017 performance that could provide up to an additional $7.0 million of cash. The 349,871 shares of Common Stock issued in connection with the acquisition are subject to a lockup period. The acquisition was financed through a combination of cash-on-hand and borrowings under the Company's senior credit facility. The Company believes the transaction will be treated as a purchase of assets for income tax purposes.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The purpose of the following Management’s Discussion and Analysis (MD&A) is to help facilitate the understanding of significant factors influencing the quarterly operating results, financial condition and cash flows of Cross Country Healthcare, Inc. Additionally, the MD&A also conveys our expectations of the potential impact of known trends, events or uncertainties that may impact future results. This discussion supplements the detailed information presented in the condensed consolidated financial statements and notes thereto which should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K, filed for the year ended December 31, 2014.

Business Overview

Cross Country Healthcare, Inc., is a national leader in providing leading-edge healthcare workforce solutions. Our solutions are geared towards assisting our clients solve labor cost issues while maintaining high quality outcomes. With more than 30 years of experience, we are dedicated to placing highly qualified nurses and physicians as well as allied health, advanced practice, clinical research, and case management professionals. We provide both retained and contingent placement services for physicians, as well as retained search services for healthcare executives. We have more than 6,000 active contracts with a broad range of clients, including acute care hospitals, physician practice groups, nursing facilities, rehabilitation and sports medicine clinics, government facilities, as well as nonclinical settings such as homecare and schools. Through our national staffing teams and network of more than 70 branch office locations, we are able to place clinicians for travel and per diem assignments, local short-term contracts and permanent positions. We are a market leader in providing flexible workforce management solutions, which include managed services programs (MSP), workforce assessments, internal resource pool consulting and development, electronic medical record (EMR) transition staffing and recruitment process outsourcing.

We manage and segment our business based on the nature of our services we offer to our customers. As a result, in accordance with ASC 280, Segment Reporting Topic of the FASB ASC, we report three business segments – Nurse and Allied Staffing, Physician Staffing, and Other Human Capital Management Services, described below:

● Nurse and Allied Staffing – Nurse and Allied Staffing represented approximately 80% of our total revenue in the third quarter of 2015. Nurse and Allied Staffing provides traditional staffing, including temporary and permanent placement of travel nurses and allied professionals and branch-based local nurses and allied staffing. Our services include the placement of travel and per diem nurses, allied healthcare professionals, such as rehabilitation therapists, radiology technicians, and respiratory therapists. Our clients include: public and private acute care and non-acute care hospitals, government facilities, schools, outpatient clinics, ambulatory care facilities, retailers, and many other healthcare providers throughout the U.S.

● Physician Staffing – Physician Staffing represented approximately 16% of our total revenue in the third quarter of 2015. Physician Staffing provides physicians in many specialties, certified registered nurse anesthetists (CRNAs), nurse practitioners (NPs) and physician assistants (PAs) under our Medical Doctor Associates (MDA) and Saber-Salisbury brands as independent contractors on temporary assignments throughout the U.S. at various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations.

● Other Human Capital Management Services – Other Human Capital Management Services (OHCMS) represented approximately 4% of our total revenue in the third quarter of 2015. Subsequent to the sale of our education seminars business, Cross Country Education, LLC ("CCE") on August 31, 2015, Other Human Capital Management Services includes retained and contingent search services for physicians and healthcare executives within the U.S.

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Executive Summary of Operations

For the quarter ended September 30, 2015, revenue from services was $195.7 million, and net income attributable to common shareholders was $5.0 million, or $0.16 per diluted share. Cash flow provided by operations for the nine months ended September 30, 2015 was $18.9 million. We ended the third quarter of 2015 with $24.6 million of cash and cash equivalents, which included $7.5 million of the cash proceeds from the sale of CCE. At the end of the third quarter of 2015, we had total debt of $72.0 million (including $17.1 million related to the cumulative change in valuation of the embedded derivative liability in our Convertible Notes less $0.8 million of debt discount).

Key Initiatives

During the third quarter of 2015, we made progress on the following:

• We expanded bill/pay spreads in the Nurse and Allied and Physician Staffing business segments.

• We completed the cost optimization project to better position us for continued margin expansion by (i) further centralizing back-office and support functions, (ii) closing and reducing excess facility space, (iii) reducing third-party expenditures, and (iv) outsourcing certain non-core functions.

• On July 22, 2015, we amended our Second Lien Term Loan, which reduced our current interest rate from 7.5% to 5.75%, effective July 2, 2015.

• On August 31, 2015, we completed the sale of our non-core education seminars business. See Note 4 - Disposal in our condensed consolidated financial statements.

• Throughout the quarter, we made investments in our business to improve our technology infrastructure and added recruiter capacity.

On October 30, 2015, we completed the acquisition of Mediscan. The acquisition will expand our customer base, increase our portfolio of new workforce solutions, and provide us access to additional healthcare professionals. See Note 17 - Subsequent Event in our condensed consolidated financial statements.

Business Metrics

We evaluate our financial condition by tracking operating metrics and financial results specific to each of our segments. Key operating metrics include hours worked, days filled, number of FTEs, revenue per FTE, and revenue per day filled. Other operating metrics include number of open orders, candidate applications, contract bookings, length of assignment, bill and pay rates, and renewal and fill rates. Some of the segment financial results analyzed include revenue, gross profit margins, operating expenses, and contribution income. In addition, we monitor cash flow as well as operating and leverage ratios to help us assess our liquidity needs.

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Business Segment	Business Measurement
Nurse and Allied Staffing	FTEs represent the average number of Nurse and Allied Staffing contract personnel on a full-time equivalent basis.
	Average revenue per FTE per day is calculated by dividing the Nurse and Allied Staffing revenue by the number of days worked in the respective periods. Nurse and Allied Staffing revenue also includes revenue from the permanent placement of nurses.
Physician Staffing	Days filled is calculated by dividing the total hours filled during the period by 8 hours.
	Revenue per day filled is calculated by dividing the actual revenue invoiced by Physician Staffing by days filled for the period presented. Revenue per day filled excludes permanent placement and accrued revenue.

Key Business Metrics

	Three Months Ended
	September 30,		September 30,				Percent
	2015		2014		Change		Change
Nurse and Allied Staffing:
FTEs	6,646		6,407		239		3.7	%
Average Nurse and Allied Staffing revenue per FTE per day	$	257	$	251	6		2.4	%
Physician Staffing:
Days filled	20,543		22,100		(1,557	)	(7.0	)%
Revenue per day filled	$	1,505	$	1,432	73		5.1	%
	Nine Months Ended
	September 30,		September 30,				Percent
	2015		2014		Change		Change
Nurse and Allied Staffing:
FTEs	6,569		4,239		2,330		55.0	%
Average Nurse and Allied Staffing revenue per FTE per day	$	256	$	269	(13	)	(4.8	)%
Physician Staffing:
Days filled	59,470		62,599		(3,129	)	(5.0	)%
Revenue per day filled	$	1,485	$	1,448	37		2.6	%

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Results of Operations

The following table summarizes, for the periods indicated, selected condensed consolidated statements of operations data expressed as a percentage of revenue. Our historical results of operations are not necessarily indicative of future operating results.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Revenue from services	100.0	%	100.0	%	100.0	%	100.0	%
Direct operating expenses	73.7		75.0		74.5		74.4
Selling, general and administrative expenses	20.0		21.6		21.1		23.1
Bad debt expense	0.3		0.1		0.1		0.2
Depreciation and amortization	1.0		1.1		1.0		1.2
Loss on sale of business	1.1		—		0.4		—
Acquisition and integration costs	0.3		1.3		0.1		1.3
Restructuring costs	0.1		—		0.2		0.2
Income (loss) from operations	3.5		0.9		2.6		(0.4	)
Interest expense	0.9		1.0		0.9		0.6
Loss on derivative liability	1.5		3.8		0.1		1.7
Other (income) expense, net	(0.1	)	—		—		—
Income (loss) before income taxes	1.2		(3.9	)	1.6		(2.7	)
Income tax (benefit) expense	(1.4	)	0.1		(0.3	)	—
Consolidated net income (loss)	2.6		(4.0	)	1.9		(2.7	)
Less: Net income attributable to noncontrolling interest in subsidiary	—		—		0.1		—
Net income (loss) attributable to common shareholders	2.6	%	(4.0	)%	1.8	%	(2.7	)%

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Segment Information

Information on operating segments and a reconciliation to income (loss) from operations for the periods indicated are as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015		2014			2015		2014
	(amounts in thousands)
Revenues:
Nurse and Allied Staffing (a)	$	157,338	$	147,851		$	459,127	$	311,814
Physician Staffing (a)	30,959		31,953			88,100		90,784
Other Human Capital Management Services	7,395		9,140			27,046		27,093
	$	195,692	$	188,944		$	574,273	$	429,691
Contribution income: (b)
Nurse and Allied Staffing (a)	$	16,251	$	12,691		$	39,368	$	25,388
Physician Staffing (a)	3,197		1,471			7,541		4,020
Other Human Capital Management Services	372		(55		)	1,721		(121		)
	19,820		14,107			48,630		29,287
Unallocated corporate overhead	8,110		7,945			23,799		19,325
Depreciation	953		1,005			2,902		2,796
Amortization	982		1,011			2,947		2,580
Loss on sale of business	2,184		—			2,184		—
Acquisition and integration costs	584		2,383			742		5,425
Restructuring costs	140		—			1,147		755
Income (loss) from operations	$	6,867	$	1,763		$	14,909	$	(1,594	)

___________________

(a) Effective January 1, 2015, we reclassified a portion of our business from the Physician Staffing segment to the Nurse and Allied Staffing segment. For the three and nine months ended September 30, 2014, revenue of $0.3 million and $1.5 million, respectively, and contribution income of less than $0.1 million for each period have been reclassified to conform to the current period presentation.

(b) We define contribution income as income or loss from operations before depreciation, amortization, acquisition and integration costs, restructuring costs, impairment charges, and corporate expenses not specifically identified to a reporting segment. Contribution income is a financial measure used by management when assessing segment performance and is provided in accordance with ASC 280, Segment Reporting Topic of the FASB ASC.

Comparison of Results for the Three Months Ended September 30, 2015 compared to the Three Months Ended September 30, 2014

Revenue from services

Revenue from services increased3.6%, to $195.7 million for the three months ended September 30, 2015, as compared to $188.9 million for the three months ended September 30, 2014. The increase was primarily due to growth in Nurse and Allied Staffing revenue, partly offset by lower revenue from Physician Staffing and Other Human Capital Management Services. Excluding the education seminars business, revenue for the quarter would have increased 5.2%.

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Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing increased6.4%, to $157.3 million for the three months ended September 30, 2015, as compared to $147.9 million for the three months ended September 30, 2014. The year-over-year increase was due to higher volume and higher average bill rates.

The average number of Nurse and Allied Staffing FTEs on contract during the three months ended September 30, 2015increased3.7% from the three months ended September 30, 2014, primarily due to increased demand. The average Nurse and Allied Staffing revenue per FTE per day increased2.4%, primarily due to higher average bill rates.

Physician Staffing

Revenue from Physician Staffing decreased3.1%, to $31.0 million for the three months ended September 30, 2015, as compared to $32.0 million for the three months ended September 30, 2014. The decrease in revenue was primarily due to lower volume partly offset by higher average revenue per day filled.

Physician Staffing days filled decreased7.0%, to 20,543 days in the three months ended September 30, 2015, as compared to 22,100 days in the three months ended September 30, 2014. Revenue per day filled for the three months ended September 30, 2015 was $1,505, up 5.1% over the prior year, due to improved pricing.

Other Human Capital Management Services

Revenue from Other Human Capital Management Services decreased19.1%, to $7.4 million for the three months ended September 30, 2015, as compared to $9.1 million for the three months ended September 30, 2014. The decrease was entirely due to one less month of revenue from the education seminars business that was sold August 31, 2015, partly offset by year-over-year revenue growth in the search business of 29.6%, reflecting strong demand.

Direct operating expenses

Direct operating expenses are comprised primarily of field employee compensation and independent contractor expenses, housing expenses, travel expenses, and field insurance expenses. Direct operating expenses increased$2.5 million or 1.8%, to $144.2 million for the three months ended September 30, 2015, as compared to $141.7 million for the three months ended September 30, 2014.

As a percentage of total revenue, direct operating expenses decreased to 73.7% compared to 75.0% in the prior year period primarily due to improved pricing and bill/pay spread, and lower professional liability expenses in Physician Staffing.

Selling, general and administrative expenses

Selling, general and administrative expenses decreased4.0%, to $39.2 million for the three months ended September 30, 2015, as compared to $40.9 million for the three months ended September 30, 2014. This decrease is primarily due to one less month of expenses from the education seminars business disposed of on August 31, 2015. Share-based compensation, included in unallocated corporate overhead, was $0.6 million and $0.4 million for the three months ended September 30, 2015 and 2014, respectively. As a percentage of total revenue, selling, general and administrative expenses were 20.0% and 21.6%, for the three months ended September 30, 2015 and 2014, respectively, reflecting improved operating leverage.

Contribution income

Nurse and Allied Staffing

Contribution income from Nurse and Allied Staffing increased$3.6 million or 28.1%, to $16.3 million for the three months ended September 30, 2015, as compared to $12.7 million for the three months ended September 30, 2014. As a percentage of segment revenue, contribution income increased to 10.3% for the three months ended September 30, 2015, compared to 8.6% for the three months ended September 30, 2014, reflecting an improvement in our bill/pay spreads.

Physician Staffing

Contribution income from Physician Staffing increased$1.7 million or 117.3%, to $3.2 million for the three months ended September 30, 2015, as compared to $1.5 million for the three months ended September 30, 2014. As a percentage of segment

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revenue, contribution income was 10.3% for the three months ended September 30, 2015 and 4.6% for the three months ended September 30, 2014. The year-over-year improvement was primarily attributable to improved pricing and lower selling, general and administrative expenses. Also contributing to the year-over-year improvement was the impact from higher professional liability charges recorded in the prior year associated with specific claims.

Other Human Capital Management Services

Contribution income from Other Human Capital Management Services was $0.4 million for the three months ended September 30, 2015, as compared to a loss of $0.1 million for the three months ended September 30, 2014. Contribution income as a percentage of segment revenue increased to 5.0% for the three months ended September 30, 2015 compared to a negative 0.6% for the three months ended September 30, 2014. The increase was primarily due to growth in the search business, partly offset by one less month of activity from the education seminars business that was sold August 31, 2015.

Depreciation and amortization expense

Depreciation and amortization expensetotaled $1.9 million for the three months ended September 30, 2015 and $2.0 million for the three months ended September 30, 2014. As a percentage of consolidated revenue, depreciation and amortization expense was 1.0% and 1.1% for the three months ended September 30, 2015 and September 30, 2014, respectively.

Acquisition and integration costs

During the three months ended September 30, 2015, we incurred acquisition and integration costs of $0.6 million primarily related to due diligence work for the Mediscan acquisition, which closed in the fourth quarter of 2015. During the three months ended September 30, 2014, we incurred acquisition and integration costs of $2.4 million, primarily related to transaction costs for the MSN acquisition.

Restructuring costs

During the three months ended September 30, 2015, we incurred $0.1 million in restructuring costs related to severance under our cost optimization project. We did not record restructuring costs in the three months ended September 30, 2014.

Interest expense

Interest expensetotaled $1.7 million and $1.8 million for the three months ended September 30, 2015 and 2014, respectively. The decrease was due to lower average borrowings and a lower effective interest rate. The effective interest rate on our borrowings was 10.1% for the three month period ended September 30, 2015 compared to 10.3% for the three months ended September 30, 2014.

Gain on derivative liability

Loss on derivative liability of $2.9 million for the three months ended September 30, 2015 relates to the change in the fair value of embedded features of our Convertible Notes from June 30, 2015. This loss was primarily a result of an increase in our share price compared to the prior quarter end. The Convertible Notes include terms that are considered to be embedded derivatives, including conversion and redemption features that primarily protect the investors' investment with us (see Note 9 - Convertible Notes Derivative Liability to our condensed consolidated financial statements). Each reporting period we are required to fair value the embedded derivative with the changes being recorded as a component of other expense (income) on our condensed consolidated statements of operations.

Income tax expense (benefit)

Income tax benefit from continuing operations totaled $2.7 million for the three months ended September 30, 2015, compared to an income tax expense of $0.2 million for the three months ended September 30, 2014. The effective tax rate was negative 113.0% and negative 2.3%, including the impact of discrete items, for the three months ended September 30, 2015 and September 30, 2014, respectively. Excluding discrete items, including the impact of a tax benefit associated with the sale of CCE, our effective tax rate for these periods was 30.1% and negative 15.2%, respectively. The effective tax rates are different than the statutory rates primarily due to the impact from amortization of indefinite-lived intangible assets for tax purposes, the partial non-deductibility of certain per diem expenses and international and state minimum taxes, which are partly offset by the reduction in unrecognized tax benefits due to the settlement of certain state examinations.

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Comparison of Results for the Nine Months Ended September 30, 2015 compared to the Nine Months Ended September 30, 2014

Revenue from services

Revenue from services increased33.6%, to $574.3 million for the nine months ended September 30, 2015, as compared to $429.7 million for the nine months ended September 30, 2014. The increase was primarily due to the June 2014 MSN acquisition and growth in Nurse and Allied Staffing revenue, partly offset by a decrease in Physician Staffing revenue. On a pro forma basis, including the results of MSN and excluding the results of the education seminars business in the prior year, revenue increased 4.8%.

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing increased47.2%, to $459.1 million for the nine months ended September 30, 2015, as compared to $311.8 million for the nine months ended September 30, 2014. The year-over-year increase was due to the impact of the acquired businesses as well as organic growth. On a pro forma basis, revenue increased 6.6%, due to continued high demand in this segment.

The average number of Nurse and Allied Staffing FTEs on contract during the nine months ended September 30, 2015increased55.0% from the nine months ended September 30, 2014, primarily due to the acquired businesses along with increased demand. The average Nurse and Allied Staffing revenue per FTE per day decreased4.8%, primarily due to the impact of the lower average bill rates of MSN. On a pro forma basis, Nurse and Allied Staffing revenue per FTE per day increased 2.4%.

Physician Staffing

Revenue from Physician Staffing decreased3.0%, to $88.1 million for the nine months ended September 30, 2015, as compared to $90.8 million for the nine months ended September 30, 2014. The decrease in revenue was primarily due to lower volume partly offset by higher average revenue per day filled.

Physician Staffing days filled decreased5.0%, to 59,470 days in the nine months ended September 30, 2015, as compared to 62,599 days in the nine months ended September 30, 2014. Revenue per day filled for the nine months ended September 30, 2015 was $1,485, up 2.6% over the prior year, due to improved pricing.

Other Human Capital Management Services

Revenue from Other Human Capital Management Services decreased0.2%, to $27.0 million for the nine months ended September 30, 2015, as compared to $27.1 million for the nine months ended September 30, 2014.

Direct operating expenses

Direct operating expenses are comprised primarily of field employee compensation and independent contractor expenses, housing expenses, travel expenses, and field insurance expenses. Direct operating expenses increased$107.9 million or 33.8%, to $427.4 million for the nine months ended September 30, 2015, as compared to $319.5 million for the nine months ended September 30, 2014.

As a percentage of total revenue, direct operating expenses were consistent at 74.5% compared to 74.4% in the prior year period.

Selling, general and administrative expenses

Selling, general and administrative expenses increased21.9% to $121.3 million for the nine months ended September 30, 2015, as compared to $99.5 million for the nine months ended September 30, 2014. This increase is primarily due to the MSN acquisition. As a percentage of total revenue, selling, general and administrative expenses were 21.1% and 23.1%, for the nine months ended September 30, 2015 and 2014, respectively, primarily reflecting improved operating leverage.

Included in selling, general and administrative expenses is unallocated corporate overhead of $23.8 million and $19.3 million for the nine months ended September 30, 2015 and 2014, respectively, representing an increase of $4.5 million. The increase is primarily due to an increase in compensation expense. As a percentage of consolidated revenue, unallocated corporate overhead

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was 4.1% and 4.5% for the nine months ended September 30, 2015 and 2014, respectively. Share-based compensation, included in unallocated corporate overhead, was $1.8 million and $1.0 million for the nine months ended September 30, 2015 and 2014, respectively.

Contribution income

Nurse and Allied Staffing

Contribution income from Nurse and Allied Staffing increased$14.0 million or 55.1%, to $39.4 million for the nine months ended September 30, 2015, as compared to $25.4 million for the nine months ended September 30, 2014. As a percentage of segment revenue, contribution income increased to 8.6% for the nine months ended September 30, 2015, compared to 8.1% for the nine months ended September 30, 2014, reflecting lower selling, general and administrative expenses.

Physician Staffing

Contribution income from Physician Staffing increased$3.5 million or 87.6%, to $7.5 million for the nine months ended September 30, 2015, as compared to $4.0 million for the nine months ended September 30, 2014. As a percentage of segment revenue, contribution income was 8.6% for the nine months ended September 30, 2015 and 4.4% for the nine months ended September 30, 2014. This increase was primarily due to improved gross margins, lower charges related to professional liability, and lower selling, general and administrative expenses.

Other Human Capital Management Services

Contribution income from Other Human Capital Management Services was $1.7 million for the nine months ended September 30, 2015, as compared to a loss of $0.1 million for the nine months ended September 30, 2014. Contribution income as a percentage of segment revenue increased to 6.4% for the nine months ended September 30, 2015 compared to a negative 0.4% for the nine months ended September 30, 2014. The increase was primarily due to growth and significant operating leverage in the search business, partly offset by one less month of activity from the education seminars business that was sold August 31, 2015.

Depreciation and amortization expense

Depreciation and amortization expensetotaled $5.8 million for the nine months ended September 30, 2015 and $5.4 million for the nine months ended September 30, 2014. As a percentage of consolidated revenue, depreciation and amortization expense was 1.0% and 1.2% for the nine months ended September 30, 2015 and September 30, 2014, respectively.

Acquisition and integration costs

During the nine months ended September 30, 2015, we incurred acquisition and integration costs of $0.7 million which predominantly related to due diligence costs for the Mediscan acquisition, which closed in the fourth quarter of 2015. During the nine months ended September 30, 2014, we incurred acquisition and integration costs of $5.4 million, primarily related to the MSN acquisition, and partly related to our December 2013 allied staffing business acquisition.

Restructuring costs

During the nine months ended September 30, 2015, we incurred $1.1 million in restructuring costs related to severance and lease consolidations. We recorded restructuring costs of $0.8 million in the nine months ended September 30, 2014, primarily related to senior management severance pay.

Interest expense

Interest expensetotaled $5.2 million and $2.4 million for the nine months ended September 30, 2015 and 2014, respectively. The increase was primarily due to the additional interest associated with our subordinated debt used to fund the June 2014 MSN acquisition. The effective interest rate on our borrowings was 10.3% for the nine month period ended September 30, 2015 compared to 8.1% for the nine months ended September 30, 2014.

30

Gain on derivative liability

Loss on derivative liability of $0.4 million for the nine months ended September 30, 2015 relates to a change in the fair value of embedded features of our Convertible Notes from December 31, 2014. This loss was primarily a result of an increase in our share price from December 31, 2014, partially offset by our improved credit quality that decreased the value of the conversion feature. The Convertible Notes include terms that are considered to be embedded derivatives, including conversion and redemption features that primarily protect the investors' investment with us (see Note 9 - Convertible Notes Derivative Liability to our condensed consolidated financial statements). Each reporting period we are required to fair value the embedded derivative with the changes being recorded as a component of other expense (income) on our condensed consolidated statements of operations.

Income tax expense (benefit)

Income tax benefit from continuing operations totaled $1.5 million for the nine months ended September 30, 2015, as compared to an expense of $0.1 million for the nine months ended September 30, 2014. The effective tax rate was negative 15.9% and negative 0.9%, including the impact of discrete items, for the nine months ended September 30, 2015 and September 30, 2014, respectively. Excluding discrete items, our effective tax rate for these periods was 22.6% and negative 24.4%, respectively. The effective tax rates are different than the statutory rates primarily due to the impact from amortization of indefinite-lived intangible assets for tax purposes, the partial non-deductibility of certain per diem expenses and international and state minimum taxes, which are partly offset by the reduction in unrecognized tax benefits due to the settlement of certain state examinations. In addition, the effective tax rate in the nine months ended September 30, 2015 was impacted by the reversal of valuation allowance as a result of the sale of CCE.

Transactions with Related Parties

See Note 15 - Related Party Transactions to our condensed consolidated financial statements.

Liquidity and Capital Resources

As of September 30, 2015, we had $24.6 million in cash and cash equivalents and $55.0 million of subordinated debt at par. The increase in cash and cash equivalents was driven by our operating cash flows and proceeds from the sale of CCE. Working capital increased to $85.6 million as of September 30, 2015 from $64.2 million as of December 31, 2014. Days' sales outstanding increased 4 days to 59 days as of September 30, 2015, compared to 55 days as of December 31, 2014.

Our operating cash flows constitute our primary source of liquidity, and historically, have been sufficient to fund our working capital, capital expenditures, internal business expansion and debt service. We believe that our capital resources are sufficient to meet our working capital needs for the next twelve months. We expect to meet our future needs for working capital, capital expenditures, internal business expansion and debt service from a combination of cash on hand, operating cash flows and funds available through the revolving loan portion of our First Lien Loan Agreement. We believe that operating cash flows and cash on hand, along with amounts available under our First Lien Loan Agreement, will be sufficient to meet these needs during the next twelve months.

Net cash provided by operating activities was $18.9 million in the nine months ended September 30, 2015, compared to net cash used in operating activities of $3.1 million in the nine months ended September 30, 2014. Net cash provided by operating activities in the nine months ended September 30, 2015 was primarily the result of our improved profitability. The usage in cash in the nine months ended September 30, 2014 was primarily due to acquisition and integration costs related to the MSN acquisition and the integration of the allied health staffing business acquired in December of 2013.

Investing activities provided $5.2 million in the nine months ended September 30, 2015, compared to $44.9 million used in the nine months ended September 30, 2014. In the third quarter of 2015 we received proceeds of $7.2 million from the sale of CCE (see Note 4 - Disposal), net of related costs, and used $1.8 million for capital expenditures in the nine months ended September 30, 2015. In the nine months ended September 30, 2014, we acquired substantially all of the assets and certain liabilities of MSN and funded $44.9 million at closing, net of cash acquired. We used $3.8 million for capital expenditures in the nine months ended September 30, 2014, which primarily related to the relocation of our Physician Staffing location.

Net cash used in financing activities during the nine months ended September 30, 2015 was $4.5 million, compared to $47.6 million provided by financing activities during the nine months ended September 30, 2014. During the nine months ended September 30, 2015, we repaid total debt, net of borrowings, of $3.6 million and used $0.5 million to repurchase stock for tax withholdings and pay $0.4 million to a noncontrolling shareholder. During the nine months ended September 30, 2014, we

31

increased our debt by $48.9 million primarily to fund the acquisition of MSN (including acquisition related expenses), operating activities and capital expenditures. In addition, we used $1.1 million for debt issuance costs related to the financing of the MSN acquisition.

Stockholders’ Equity

See Note 11 - Stockholders' Equity to our condensed consolidated financial statements.

Debt

Senior Credit Facility

Our First Lien Loan Agreement, as amended, provides for, among other things, a revolving credit facility of $85.0 million and a letter of credit subline of $35.0 million, with a termination date of June 30, 2017. The revolving credit facility and letter of credit subline is used to provide our ongoing working capital and for other general corporate purposes.

As of September 30, 2015, the interest rate spreads and fees under the First Lien Loan Agreement are based on LIBOR plus 1.50% or Base Rate plus 0.50%. The LIBOR and Base Rate margins are subject to performance pricing adjustments, pursuant to a pricing matrix based on excess availability under the revolving credit facility, and could increase by 200 basis points if an event of default exists. We are required to pay a monthly commitment fee on the average daily unused portion of the revolving loan facility, which, as of September 30, 2015, was 0.375%.

As of September 30, 2015, the Gross Availability, as defined in the First Lien Loan Agreement, was approximately $70.7 million based on our accounts receivable balance as of August 31, 2015. We had $23.5 million letters of credit outstanding and no borrowings drawn under the revolving credit facility, leaving $47.2 million available as of September 30, 2015. The letters of credit relate to our workers’ compensation and professional liability insurance policies. See Note 8 - Debt to our condensed consolidated financial statements.

Second Lien Term Loan

Our Second Lien Term Loan Agreement provides for a five-year senior secured term loan facility in an aggregate principal amount of $30.0 million (the loans thereunder, the Second Lien Term Loan). Amounts borrowed under the Second Lien Term Loan Facility that are repaid or prepaid may not be re-borrowed. On July 22, 2015, we entered into an amendment to our Second Lien Term Loan. Under the terms of the amendment, the interest rate on the Second Lien Term Loan was modified, effective July 1, 2015, at no cost from LIBOR (defined as the 3-month London interbank offered rate for U.S. dollars, adjusted for customary Eurodollar reserve requirements, if any, and subject to a1% floor) plus 6.50% to LIBOR (1% floor) plus a rate based on our total net leverage ratio, as defined in the Second Lien Term Loan Agreement. As of September 30, 2015, the Second Lien Term Loan bore interest at a rate equal to adjusted LIBOR (1% floor) plus 4.75%. The interest rate is subject to an increase by 200 basis points if an event of default exists under the Second Lien Term Loan Agreement.

We may, at our option at any time, prepay the Second Lien Term Loan in whole or in part at the redemption prices set forth therein, which range from 103% of the principal amount thereof for prepayments during the period July 1, 2015 through June 30, 2016, 102% of the principal amount thereof for prepayments during the period July 1, 2016 through June 30, 2017, and 100% of the principal amount thereof for prepayments after such date.

Subject to certain exceptions, the Second Lien Term Loan is required to be prepaid with: (a) 50% of excess cash flow (as defined in the Second Lien Term Loan Agreement) above $5.0 million for each of our fiscal years (commencing with the fiscal year ending December 31, 2015), provided that voluntary prepayments of the Second Lien Term Loan made during such fiscal year will reduce the amount of excess cash flow prepayments required for such fiscal year on a dollar-for-dollar basis; (b) 100% of the net cash proceeds of all asset sales or other dispositions of property by us, as set forth in the agreement, in excess of a defined threshold and subject to our right to reinvest such proceeds within 12 months; (c) 100% of the net cash proceeds of issuances of debt offerings by us (except the net cash proceeds of any permitted debt); and (d) 50% of the net cash proceeds of our equity offerings.

The Second Lien Term Loan Agreement contains customary representations, warranties, and affirmative covenants. Among other things, the agreement also includes a financial covenant limiting our maximum “debt” to “EBITDA” (each, as defined therein) ratio to no greater than 4.50:1.00, subject to customary equity cure rights. As of September 30, 2015, we were in compliance with the financial covenants contained in the agreement. The "debt" to "EBITDA" ratio was 0.9:1.00 as of September 30, 2015. See Note 8 - Debt to our condensed consolidated financial statements.

32

Convertible Notes

On June 30, 2014, we entered into a Convertible Note Purchase Agreement (the Note Purchase Agreement), with certain note holders (collectively, the Noteholders). Pursuant to the Note Purchase Agreement, we sold to the Noteholders an aggregate of $25.0 million of convertible senior notes (the Convertible Notes). The proceeds from the Note Purchase Agreement were used to pay a portion of the consideration paid in the MSN Acquisition and related fees and expenses.

The Convertible Notes are convertible at the option of the holders thereof at any time into shares of our common stock, at an initial conversion price of $7.10 per share, or 3,521,126 shares of Common Stock. After three years from the issuance date, we have the right to force a conversion of the Convertible Notes if the volume-weighted average price (VWAP) per share of our Common Stock exceeds 125% of the then conversion price for 20 days of a 30 day trading period. The conversion price is subject to adjustment pursuant to customary weighted average anti-dilution provisions including adjustments for the following: Common Stock dividends or distributions; issuance of any rights, warrants of options to acquire Common Stock; distributions of property; tender offer or exchange offer payments; cash dividends; or certain issuances of Common Stock at less than the conversion price. Upon conversion of the Convertible Notes, we will exchange, for the applicable conversion amount thereof a number of shares of Common Stock equal to the amount determined by dividing (i) such conversion amount by (ii) the conversion price in effect at the time of conversion. No fractional shares of Common Stock will be issued upon conversion of the Conversion Notes. In lieu of fractional shares, we shall pay cash in respect of each fractional share equal to such fractional amount multiplied by the 30-day VWAP as of the closing of business on the Business Day immediately preceding the conversion date as well as any unpaid accrued interest.

The Convertible Notes bear interest at a rate of 8.00% per annum, payable in quarterly cash installments; provided, however, that, at our option, up to 4.00% of the interest payable may be “paid-in-kind” through a quarterly addition of such “paid-in-kind” interest amount to the principal amount of the Convertible Notes. The Convertible Notes will mature on June 30, 2020, unless earlier repurchased, redeemed or converted. Subject to certain exceptions, we are not permitted to redeem the Convertible Notes until June 30, 2017. If we redeem the Convertible Notes on or after June 30, 2017, we are required to pay a premium of 15% of the amount of principal of the Convertible Notes redeemed.

If the Convertible Notes are redeemed prior to June 30, 2017, pursuant to a Prohibited Transaction, as defined by the agreement, we are required to pay a premium equal to the greater of (i) the sum of (a) the amount of principal of the Convertible Notes redeemed, plus (b) the accrued but unpaid interests on the principal amount so redeemed to the date of the redemption, plus (c) a “make whole” amount (described below) and (ii) the sum of (x) the average 30-day volume-weighted average price per share of Common Stock multiplied by the number of shares of Common Stock that the redeemed Convertible Notes are then convertible into and (y) the accrued but unpaid interest on the Convertible Notes. The “make whole” amount is equal to the excess, if any, of (1) the present value at the date of redemption of (A) 115% of the principal amount of the Convertible Notes redeemed, plus (B) all remaining scheduled interest due on the principal amount of the notes being redeemed through June 30, 2017 computed using a discount rate equal to the Treasury rate as of the date of redemption plus 50 basis points over (2) the outstanding principal amount of the Convertible Notes then redeemed.

In conjunction with ASC 815, Accounting for Derivative Financial Instruments and Hedging Activities, we have bifurcated and accounted for an embedded derivative related to specific features of these Convertible Notes. As required by ASC 815, the embedded derivative is required to be accounted for as a derivative liability at fair value in our condensed consolidated financial statements. See Note 9 - Convertible Notes Derivative Liability to our condensed consolidated financial statements.

Commitments and Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

See Note 13 - Commitments and Contingencies to our condensed consolidated financial statements.

Critical Accounting Principles and Estimates

Our critical accounting principles and estimates remain consistent with those reported in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC.

In the fourth quarter of 2014, in conjunction with our annual testing of indefinite-lived intangible assets not subject to amortization, we recorded a pretax non-cash impairment charge of $10.0 million for Physician Staffing trade names. The fair value of the trade names in the Physician Staffing segment is impacted by revenue projections, royalty rates and other

33

assumptions.  While our current expectations have resulted in a fair value in excess of carrying value, a future impairment charge may be recorded should those projections not be realized or underlying assumptions require modification.  We will continue to monitor the recoverability of the related intangible assets.

Recent Accounting Pronouncements

See Note 16 - Recent Accounting Pronouncements to our condensed consolidated financial statements.

34

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

We are exposed to the risk of fluctuation in interest rates relating to our variable rate debt related to our Senior Credit Facility and Second Lien Loan Agreement entered. See Note 8 - Debt for further information. During the nine months ended September 30, 2015 or 2014, we did not use interest rate swaps or other types of derivative financial instruments to hedge our interest rate risk.

Derivative Liability Risk

As of September 30, 2015, in conjunction with the MSN acquisition, we had $25.0 million of 8.0% fixed rate Convertible Notes outstanding due June 30, 2020. The Convertible Notes include terms that are considered to be embedded derivatives, including conversion and redemption features that primarily protect the investors' investment with us. Each reporting period, we are required to record this embedded derivative at fair value with the changes being recorded as a component of other expense (income) on our condensed consolidated statements of operations. Accordingly, our results of operations are subject to exposure associated with increases or decreases in the estimated fair value of our embedded derivative.

The fair value of this derivative liability is primarily determined by fluctuations in our stock price, as well as changes in our credit profile. As our stock price increases or decreases, the fair value of this derivative liability increases or decreases, resulting in a corresponding current period loss or gain to be recognized. See Note 9 - Convertible Notes Derivative Liability.

Other Risks

There have been no material changes to our other exposures as disclosed in our Annual Report on Form 10-K filed for the year ended December 31, 2014.

35

ITEM 4. CONTROLS AND PROCEDURES

We carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this report. Based upon the evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective. Disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized, communicated to management, including the Chief Executive Officer and the Chief Financial Officer, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. The disclosure controls and procedures are designed to ensure that information required to be disclosed by us in reports required under the Exchange Act of 1934, as amended, is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, in order to allow timely decisions regarding any required disclosure.

The evaluation has not identified any changes in our internal controls over financial reporting or in other factors that occurred during the last fiscal quarter that have materially affected or that are reasonably likely to materially affect our internal control over financial reporting.

36

PART II. – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are subject to legal proceedings and claims that arise in the ordinary course of our business. We do not believe the outcome of these matters will have a material adverse effect on our business, financial condition or results of operations.

ITEM 1A. RISK FACTORS

There are no material changes to our Risk Factors as previously disclosed in our Form 10-K for the year ended December 31,

2014.

ITEM 6. EXHIBITS

See Exhibit Index immediately following signature page.

37

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CROSS COUNTRY HEALTHCARE, INC.
Date: November 5, 2015	By:	/s/ William J. Burns
		William J. Burns Chief Financial Officer (Principal Accounting and Financial Officer)

38

EXHIBIT INDEX

No.	Description
*31.1	Certification pursuant to Rule 13a-14(a) and Rule 15d-14 (a) by William J. Grubbs, President and Chief Executive Officer
*31.2	Certification pursuant to Rule 13a-14(a) and Rule 15d-14 (a) by William J. Burns, Chief Financial Officer
*32.1	Certification pursuant to 18 U.S.C. Section 1350 by William J. Grubbs, President and Chief Executive Officer
*32.2	Certification pursuant to 18 U.S.C. Section 1350 by William J. Burns, Chief Financial Officer
**101.INS	XBRL Instance Document
**101.SCH	XBRL Taxonomy Extension Schema Document
**101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
**101.LAB	XBRL Taxonomy Extension Label Linkbase Document
**101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
**101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
*	Filed herewith
**	Furnished herewith

39

EX-31.1

EXHIBIT 31.1

Certification

I, William J. Grubbs, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cross Country Healthcare, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and    

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 5, 2015	/s/ William J. Grubbs
		William J. Grubbs President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification

I, William J. Burns, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cross Country Healthcare, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and    

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 5, 2015	/s/ William J. Burns
		William J. Burns Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the accompanying Quarterly Report on Form 10-Q of Cross Country Healthcare, Inc. (the Company) for the quarterly period ended September 30, 2015, (the "Periodic Report"), I, William J. Grubbs, President and Chief Executive Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge the Periodic Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 5, 2015	/s/ William J. Grubbs
		William J. Grubbs President and Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Cross Country Healthcare, Inc. and will be retained by Cross Country Healthcare, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is provided solely for purposes of complying with the provisions of Section 906 of the Sarbanes-Oxley Act of 2002.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the accompanying Quarterly Report on Form 10-Q of Cross Country Healthcare, Inc. (the "Company") for the quarterly period ended September 30, 2015, (the "Periodic Report"), I, William J. Burns, Chief Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge the Periodic Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 5, 2015	/s/ William J. Burns
		William J. Burns Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Cross Country Healthcare, Inc. and will be retained by Cross Country Healthcare, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is provided solely for purposes of complying with the provisions of Section 906 of the Sarbanes-Oxley Act of 2002.

XML

DISPOSAL (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Aug. 31, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Loss on sale of business		$ 2,184	$ 0	$ 2,184	$ 0
Cross Country Education, LLC [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member]
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Consideration	$ 8,000
Contingent liability	$ 500
Earn-out held in escrow, term (in months)	12 months
Performance related earn out	$ 500
Non-compete agreement, term (in years)	5 years
Loss on sale of business	$ 2,200

XML

FAIR VALUE MEASUREMENTS - Estimated Fair Values Assets and Liabilities Measured on Non-Recurring Basis (Details) $ in Thousands	Dec. 31, 2014 USD ($)
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MDA Trade names	$ 17,699

XML

DEBT - Repricing of Second Lien Term Loan (Details) - Second Lien Term Loan [Member]	Jul. 22, 2015
London Inter Bank Offered Rate (LIBOR), Pricing Level 1 [Member]
Debt Instrument [Line Items]
Interest margin	4.75%
London Interbank Offered Rate (LIBOR), Pricing Level 2 [Member]
Debt Instrument [Line Items]
Interest margin	5.25%
London Interbank Offered Rate (LIBOR), Pricing Level 3 [Member]
Debt Instrument [Line Items]
Interest margin	5.75%
London Interbank Offered Rate (LIBOR), Pricing Level 4 [Member]
Debt Instrument [Line Items]
Interest margin	6.50%
Maximum [Member] | London Inter Bank Offered Rate (LIBOR), Pricing Level 1 [Member]
Debt Instrument [Line Items]
Net leverage ratio	2.50
Maximum [Member] | London Interbank Offered Rate (LIBOR), Pricing Level 2 [Member]
Debt Instrument [Line Items]
Net leverage ratio	3.25
Maximum [Member] | London Interbank Offered Rate (LIBOR), Pricing Level 3 [Member]
Debt Instrument [Line Items]
Net leverage ratio	4.0
Minimum [Member] | London Interbank Offered Rate (LIBOR), Pricing Level 2 [Member]
Debt Instrument [Line Items]
Net leverage ratio	2.50
Minimum [Member] | London Interbank Offered Rate (LIBOR), Pricing Level 3 [Member]
Debt Instrument [Line Items]
Net leverage ratio	3.25
Minimum [Member] | London Interbank Offered Rate (LIBOR), Pricing Level 4 [Member]
Debt Instrument [Line Items]
Net leverage ratio	4.0

XML

FAIR VALUE MEASUREMENTS - Financial Instrument that were not Measured at Fair Value (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Second Lien Term Loan [Member] | Reported Value Measurement [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Financial Liabilities, Carrying Amount	[1]	$ 29,157	$ 28,989
Second Lien Term Loan [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Financial Liabilities, Fair Value	[1]	30,600	29,900
Convertible Notes, Net [Member] | Reported Value Measurement [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Financial Liabilities, Carrying Amount	[1]	18,906	17,947
Convertible Notes, Net [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Financial Liabilities, Fair Value	[1]	23,000	19,200
Senior Secured Asset Based [Member] | Reported Value Measurement [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Financial Liabilities, Carrying Amount	[2]	0	3,500
Senior Secured Asset Based [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Financial Liabilities, Fair Value	[2]	$ 0	$ 3,500

[1] The Second Lien Term Loan and Convertible Notes are reported at their carrying value in the accompanying condensed consolidated balance sheets. The Company determined their fair value, as presented in the table using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issuances with similar remaining years to maturity, adjusted for credit risk.

[2] Carrying value of the Senior Secured Asset-Based Loan approximates estimated fair value based on the short-term nature and the pricing at varying interest rates.

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DEBT - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolver credit facility, interest rate		2.61%
Term Loan Facility [Member]
Debt Instrument [Line Items]
Interest Rate	$ 843	$ 1,011
Unamortized Discount	5.75%	7.50%
Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Interest Rate	$ 6,094	$ 7,053
Unamortized Discount	8.00%	8.00%

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COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Lease Payments

Future minimum lease payments, as of September 30, 2015, associated with these agreements with terms of one year or more are as follows:

Through Year Ending December 31:	(amounts in thousands)
2015	$	1,405
2016	6,331
2017	5,215
2018	3,866
2019	2,907
Thereafter	14,701
	$	34,425

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STOCKHOLDERS' EQUITY - Summary of Restricted Stock and Performance Shares (Details)	9 Months Ended
	Sep. 30, 2015 $ / shares shares
Restricted Stock [Member]
Number of Shares
Unvested restricted stock awards, January 1, 2015 | shares	659,650
Granted | shares	220,160
Vested | shares	(239,062)
Forfeited | shares	(50,618)
Unvested restricted stock awards, September 30, 2015 | shares	590,130
Weighted Average Grant Date Fair Value (in usd per share)
Unvested restricted stock awards, January 1, 2015	$ 5.72
Granted	11.52
Vested	5.75
Forfeited	6.44
Unvested restricted stock awards, September 30, 2015	$ 7.82
Performance Shares [Member]
Number of Shares
Unvested restricted stock awards, January 1, 2015 | shares	218,175
Granted | shares	163,340
Vested | shares	0
Forfeited | shares	(145,541)
Unvested restricted stock awards, September 30, 2015 | shares	235,974
Weighted Average Grant Date Fair Value (in usd per share)
Unvested restricted stock awards, January 1, 2015	$ 5.82
Granted	11.86
Vested	0.00
Forfeited	6.14
Unvested restricted stock awards, September 30, 2015	$ 9.80

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ACQUISITIONS (Tables)

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Reconciliation of acquisition and integration liability

Reconciliations of the beginning and ending acquisition and integration liability balances are presented below:

	Three Months Ended						Nine Months Ended
	September 30, 2015						September 30, 2015
	(amounts in thousands)
	Ongoing Benefit Costs			Exit Costs			Ongoing Benefit Costs			Exit Costs
Balance at beginning of period	$	140		$	421		$	944		$	868
Charged to operations	5			—			75			88
Reclassifications (a)	—			(255		)	—			(255		)
Payments	(62		)	(88		)	(936		)	(623		)
Balance at end of period	$	83		$	78		$	83		$	78

Schedule of unaudited pro forma financial information

The following unaudited pro forma financial information approximates the consolidated results of operations of the Company as if the MSN acquisition had occurred as of January 1, 2014, after giving effect to certain adjustments, including additional interest expense on the amount the Company borrowed on the date of the transaction, the amortization of acquired intangible assets, and the elimination of certain expenses that will not be recurring in post-acquisition periods, net of an estimated income tax impact. These adjustments include removing transaction-related expenses of approximately $6.2 million in 2014 related to the MSN acquisition. These results are not necessarily indicative of future results as they do not include incremental investments in support functions, elimination of costs for integration or operating synergies, estimates of the changes in the fair value of the embedded derivative in our Convertible Notes or an estimate of any impact on interest expense resulting from the operating cash flow of the acquired business, among other adjustments that could be made in the future but are not factually supportable on the date of the transaction.

	Nine Months Ended
	September 30, 2014
	(unaudited, amounts in thousands)
Revenue from services	$	551,761
Net loss	$	(9,688	)
Net loss per share attributable to common shareholders - Basic	$	(0.31	)
Net loss per share attributable to common shareholders - Diluted	$	(0.31	)

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CONVERTIBLE NOTES DERIVATIVE LIABILITY (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2015 USD ($) $ / shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Closing share price (in usd per share)	$ 13.61
Conversion price (in usd per share)	$ 7.10
Risk-free rate (as a percentage)	1.34%
Expected volatility (as a percentage)	40.00%
Dividend yield (as a percentage)	0.00%
Expected life (in years)	4 years 9 months
Change in valuation of embedded derivative liability due to dollar change in stock price | $	$ 3.3
Change in valuation of embedded derivative liability due to percentage change in interest rates | $	$ 0.9
Embedded Derivative Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in stock price (in usd per share)	$ 1
Change in interest rates (as a percentage)	1.00%

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EARNINGS PER SHARE - Antidilutive Securities Excluded from the Computation of Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Common stock shares that have been excluded from the per share calculation	3,521,126	3,748,469	3,521,126	3,818,614

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ACQUISITIONS - Reconciliation of Acquisition and Integration Liabilities (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Restructuring Reserve [Roll Forward]
Charged to operations		$ 140	$ 0	$ 1,147	$ 755
Medical Staffing Network [Member] | Ongoing Postemployment Benefits [Member]
Restructuring Reserve [Roll Forward]
Balance at beginning of period		140		944
Charged to operations		5		75
Reclassifications	[1]	0		0
Payments		(62)		(936)
Balance at end of period		83		83
Medical Staffing Network [Member] | Exit Costs [Member]
Restructuring Reserve [Roll Forward]
Balance at beginning of period		421		868
Charged to operations		0		88
Reclassifications	[1]	(255)		(255)
Payments		(88)		(623)
Balance at end of period		$ 78		$ 78

[1] Exit liability has been reduced as a result of a lease amendment and has been reclassified to deferred rent, which will be amortized over the remaining lease term.

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FAIR VALUE MEASUREMENTS - Estimated Fair values Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member] | Deferred compensation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation	$ 1,390	$ 1,510
Fair Value, Inputs, Level 3 [Member] | Convertible Notes, Derivative Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible Notes derivative liability	$ 23,821	$ 23,436

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Effective tax rate (percentage)	(113.00%)			(15.90%)
Effective income tax rate continuing operations excluding discrete items (percentage)	30.10%			22.60%
Unrecognized tax benefits	$ 3,900			$ 3,900
Unrecognized tax benefits that would impact effective tax rate	3,600			3,600
Unrecognized tax benefits period gross increases				700
Unrecognized tax benefits period gross decreases				$ 600
Income tax examination years subject to examination				2004, 2005, 2008, and 2010 through 2014
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income Tax Expense (Benefit)	2,732	$ (169)		$ 1,490	$ (104)
Prior Period Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Change in valuation allowance			$ 1,700
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Cross Country Education, LLC [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income Tax Expense (Benefit)	$ 3,500			$ 3,500

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DEBT - Narrative (Details) - USD ($)		9 Months Ended
	Jul. 22, 2015	Sep. 30, 2015
First Lien Loan Agreement [Member]
Debt Instrument [Line Items]
Quarterly commitment fee on the average daily unused portion (percentage)		0.375%
Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Letters of credit outstanding		$ 23,500,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Interest rate increase (decrease) (percentage)		2.00%
Line of Credit [Member] | First Lien Loan Agreement [Member]
Debt Instrument [Line Items]
Remaining borrowing capacity		$ 47,200,000
First Lien Loan Agreement [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity		85,000,000.0
Current borrowing capacity		$ 70,700,000
First Lien Loan Agreement [Member] | Revolving Credit Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Interest margin		1.50%
Interest rate description		LIBOR
First Lien Loan Agreement [Member] | Revolving Credit Facility [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Interest margin		0.50%
Interest rate description		Base Rate
First Lien Loan Agreement [Member] | Revolving Credit Facility [Member] | Swingline Borrowings [Member]
Debt Instrument [Line Items]
Subfacility loans percentage up to aggregate revolver commitments		10.00%
First Lien Loan Agreement [Member] | Revolving Credit Facility [Member] | Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Line of credit, subfacility for standby letters of credit		$ 35,000,000.0
Second Lien Term Loan [Member]
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity		$ 30,000,000.0
Interest rate increase (decrease) (percentage)	2.00%
Line of credit facility, term (in years)		5 years
Mandatory prepayments as percentage of excess cash flow		50.00%
Mandatory prepayments in excess of cash flow, threshold		$ 5,000,000.0
Mandatory prepayments, percentage of net cash proceeds of asset sold		100.00%
Mandatory prepayments, percentage of cash proceeds of issuances of debt		100.00%
Mandatory prepayment, percent of net cash proceeds of equity offering		50.00%
Debt to EBITDA ratio		0.9
Second Lien Term Loan [Member] | Period July 1, 2015 through June 30, 2016 [Member]
Debt Instrument [Line Items]
Percentage of principal amount redeemed		103.00%
Second Lien Term Loan [Member] | Period July 1, 2016 through June 30, 2017 [Member]
Debt Instrument [Line Items]
Percentage of principal amount redeemed		102.00%
Second Lien Term Loan [Member] | After June 30, 2017 [Member]
Debt Instrument [Line Items]
Percentage of principal amount redeemed		100.00%
London Interbank Offered Rate (LIBOR) [Member] | Second Lien Term Loan [Member]
Debt Instrument [Line Items]
Interest margin	6.50%	4.75%
Variable rate, floor	1.00%	1.00%
Maximum [Member] | Second Lien Term Loan [Member]
Debt Instrument [Line Items]
Debt to EBITDA ratio		4.50

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ACQUISITIONS

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

ACQUISITIONS

ACQUISITIONS

Medical Staffing Network

On June 30, 2014, the Company acquired substantially all of the assets and certain liabilities of Medical Staffing Network Healthcare, LLC (MSN) for an aggregate purchase price of $47.1 million, net of $1.0 million cash acquired. The Company paid $44.6 million, net of cash acquired, and an additional $2.5 million was deferred and is due to the seller 21 months from the acquisition date, less any COBRA expenses incurred by the Company on behalf of former MSN employees over that period. The Company has incurred $0.3 million in COBRA expenses since the MSN acquisition and has a remaining liability of $2.2 million in the line item deferred purchase price on its condensed consolidated balance sheet.

The Company financed the purchase price using $55.0 million in new subordinated debt consisting of a $30.0 million, 5-year term loan and $25.0 million of convertible notes having a 6-year maturity and a conversion price of $7.10. The Company also amended its loan agreement with Bank of America. N.A. to increase its borrowing capacity under its senior secured asset-based revolving credit facility from $65.0 million to $85.0 million. See Note 8 - Debt for further information.

The acquisition has been accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, Business Combinations, using the acquisition method of accounting. The results of the acquisition's operations are included in the consolidated statements of operations from July 1, 2014. The acquisition results are substantially reported through the Company's Nurse and Allied Staffing business segment. As such, the associated goodwill related to the acquisition of MSN is fully allocated to Nurse and Allied Staffing.

The Company has integrated the acquired business into its current operations, including the consolidation of branch and corporate offices and therefore, it is impracticable to separate its results.  Acquisition and integration costs as presented on the condensed consolidated statements of operations include exit costs associated with redundant facilities and ongoing post-employment termination costs. Acquisition and integration costs in the three and nine months ended September 30, 2015 are primarily related to due diligence efforts related to the Mediscan acquisition, which closed on October 30, 2015.  See Note 17 - Subsequent Event.

Acquisition and Integration Costs

Reconciliations of the beginning and ending acquisition and integration liability balances are presented below:

	Three Months Ended						Nine Months Ended
	September 30, 2015						September 30, 2015
	(amounts in thousands)
	Ongoing Benefit Costs			Exit Costs			Ongoing Benefit Costs			Exit Costs
Balance at beginning of period	$	140		$	421		$	944		$	868
Charged to operations	5			—			75			88
Reclassifications (a)	—			(255		)	—			(255		)
Payments	(62		)	(88		)	(936		)	(623		)
Balance at end of period	$	83		$	78		$	83		$	78

(a) Exit liability has been reduced as a result of a lease amendment and has been reclassified to deferred rent, which will be amortized over the remaining lease term.

Pro Forma Financial Information

The following unaudited pro forma financial information approximates the consolidated results of operations of the Company as if the MSN acquisition had occurred as of January 1, 2014, after giving effect to certain adjustments, including additional interest expense on the amount the Company borrowed on the date of the transaction, the amortization of acquired intangible assets, and the elimination of certain expenses that will not be recurring in post-acquisition periods, net of an estimated income tax impact. These adjustments include removing transaction-related expenses of approximately $6.2 million in 2014 related to the MSN acquisition. These results are not necessarily indicative of future results as they do not include incremental investments in support functions, elimination of costs for integration or operating synergies, estimates of the changes in the fair value of the embedded derivative in our Convertible Notes or an estimate of any impact on interest expense resulting from the operating cash flow of the acquired business, among other adjustments that could be made in the future but are not factually supportable on the date of the transaction.

	Nine Months Ended
	September 30, 2014
	(unaudited, amounts in thousands)
Revenue from services	$	551,761
Net loss	$	(9,688	)
Net loss per share attributable to common shareholders - Basic	$	(0.31	)
Net loss per share attributable to common shareholders - Diluted	$	(0.31	)

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RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Revenue from related parties	$ 2.8	$ 6.0	$ 9.0	$ 11.4
Accounts receivable from related parties	1.2		1.2		$ 2.0
InteliStaf [Member]
Related Party Transaction [Line Items]
Revenue from related parties	$ 2.6	$ 2.5	$ 6.9
Joint venture, percent ownership	68.00%		68.00%
Receivable balance with joint venture	$ 0.5		$ 0.5		0.9
Payable balance with joint venture	$ 0.1		$ 0.1		$ 0.1

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GOODWILL AND OTHER INTANGIBLES - Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 68,032	$ 68,032
Accumulated Amortization	37,156	34,209
Intangible assets subject to amortization, net carrying amount	30,876	33,823
Goodwill	80,758	90,647
Trade names	38,201	38,201
Intangible assets not subject to amortization, net	118,959	128,848
Database Rights [Member]
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	22,425	22,425
Accumulated Amortization	13,727	12,893
Intangible assets subject to amortization, net carrying amount	8,698	9,532
Customer Relationships [Member]
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	42,004	42,004
Accumulated Amortization	19,953	17,870
Intangible assets subject to amortization, net carrying amount	22,051	24,134
Noncompete Agreements [Member]
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,603	3,603
Accumulated Amortization	3,476	3,446
Intangible assets subject to amortization, net carrying amount	$ 127	$ 157

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CONVERTIBLE NOTES DERIVATIVE LIABILITY (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Inputs into Valuation Model

The inputs into the valuation model are as follows:

	September 30, 2015
Closing share price	$13.61
Conversion price	$7.10
Risk-free rate	1.34%
Expected volatility	40%
Dividend yield	—%
Expected life	4.75

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DEBT (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Long-term Debt

At September 30, 2015 and December 31, 2014, long-term debt consists of the following:

	September 30,			December 31,
	2015			2014
	(amounts in thousands)
Senior Secured Asset-Based, interest 2.61% at December 31, 2014	$	—		$	3,500
Second Lien Term Loan, net of unamortized discount of $843 and $1,011 at September 30, 2015 and December 31, 2014, respectively, interest 5.75% and 7.50% at September 30, 2015 and December 31, 2014, respectively	29,157			28,989
Convertible Notes, net of unamortized discount of $6,094 and $7,053 at September 30, 2015 and December 31, 2014, respectively, fixed rate interest of 8.00%	18,906			17,947
Convertible Notes derivative liability	23,821			23,436
Capital lease obligations	122			202
Total debt	72,006			74,074
Less: Current portion	(88		)	(3,607		)
Long-term debt	$	71,918		$	70,467

Debt Terms

Pricing Level	Total Net Leverage Ratio	Applicable Margin
I	Less than 2.50:1.00	4.75%
II	Greater than or equal to 2.50:1.00 but less than or equal to 3.25:1.00	5.25%
III	Greater than 3.25:1.00  but less than or equal to 4:00:1.00	5.75%
IV	Greater than 4.00:1.00	6.50%
Above terms defined in accordance with the Second Lien Term Loan Agreement.

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STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jan. 09, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares left remaining to repurchase under the plan (up to)	942,443			942,443
Stock repurchase program, authorized amount (up to)						$ 5,000,000
Number of shares of common stock outstanding	31,552,231			31,552,231
Share-based compensation	$ 600,000		$ 400,000	$ 1,773,000	$ 958,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted				220,160
Vested in period, net (in shares)	10,330		5,654	190,631	141,188
Restricted Stock [Member] | Omnibus Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted				220,160
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted				163,340
Performance Shares [Member] | Omnibus Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted				163,340
Level of performance attained and approved (percentage)		41.40%
Shares issued in period		86,661

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GOODWILL AND OTHER INTANGIBLES - Changes in Carrying Amount of Goodwill by Segment (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Goodwill [Line Items]
Aggregate goodwill acquired	$ 350,379	$ 350,379
Sale of CCE	(9,889)
Accumulated impairment loss	(259,732)	(259,732)
Goodwill, net of impairment loss	80,758	90,647
Operating Segments [Member] | Nurse and allied staffing [Member]
Goodwill [Line Items]
Aggregate goodwill acquired	287,667	287,667
Sale of CCE	0
Accumulated impairment loss	(259,732)	(259,732)
Goodwill, net of impairment loss	27,935	27,935
Operating Segments [Member] | Physician Staffing [Member]
Goodwill [Line Items]
Aggregate goodwill acquired	43,405	43,405
Sale of CCE	0
Accumulated impairment loss	0	0
Goodwill, net of impairment loss	43,405	43,405
Operating Segments [Member] | Other human capital management services [Member]
Goodwill [Line Items]
Aggregate goodwill acquired	19,307	19,307
Sale of CCE	(9,889)
Accumulated impairment loss	0	0
Goodwill, net of impairment loss	$ 9,418	$ 19,307

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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Summary of Estimated Fair Values of Financial Assets and Liabilities Measured on a Recurring Basis

The table which follows summarizes the estimated fair value of the Company’s financial assets and liabilities measured on a recurring basis as of September 30, 2015 and December 31, 2014:

Fair Value Measurements

	September 30, 2015		December 31, 2014
Financial Liabilities:	(amounts in thousands)
(Level 1)
Deferred compensation	$	1,390	$	1,510
(Level 3)
Convertible Notes derivative liability	$	23,821	$	23,436

Schedule of reconciliation of opening and closing balances for fair value measurements categorized within Level 3

The table which follows reconciles the opening balances to the closing balances for fair value measurements of the Convertible Notes derivative liability categorized within Level 3 of the fair value hierarchy:

	Three Months Ended		Nine Months Ended
	September 30, 2015		September 30, 2015
	(amounts in thousands)
Beginning Balance	$	20,927	$	23,436
Purchases / Sales	—		—
Settlements	—		—
Valuation adjustment (a)	2,894		385
Ending Balance	$	23,821	$	23,821

_______________

(a) Loss on the valuation of the derivative liability is included as a line item as part of other expenses (income) on the condensed consolidated statements of operations. See Note 9 - Convertible Notes Derivative Liability for further information.

Summary of Estimated Fair Values of Financial Assets and Liabilities Measured on a Non-Recurring Basis

The table below presents the fair value of the MDA trade names as of December 31, 2014.

Fair Value Measurements
	December 31, 2014
	(amounts in thousands)
(Level 3)
MDA Trade names	$	17,699

Carrying Amounts and Estimated Fair Values of Significant Financial Instrument that were not Measured at Fair Value

The following table represents the carrying amounts and estimated fair value of the Company’s significant financial instruments that were not measured at fair value:

	September 30, 2015				December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities:			(amounts in thousands)
(Level 2)
Second Lien Term Loan, net (a)	$	29,157	$	30,600	$	28,989	$	29,900
Convertible Notes, net (a)	$	18,906	$	23,000	$	17,947	$	19,200
Senior Secured Asset-Based Loan (b)	$	—	$	—	$	3,500	$	3,500

 _______________

(a) The Second Lien Term Loan and Convertible Notes are reported at their carrying value in the accompanying condensed consolidated balance sheets. The Company determined their fair value, as presented in the table using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issuances with similar remaining years to maturity, adjusted for credit risk.

(b) Carrying value of the Senior Secured Asset-Based Loan approximates estimated fair value based on the short-term nature and the pricing at varying interest rates.

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STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Summary of Restricted Stock Activity

The following table summarizes restricted stock awards and performance stock awards activity for the nine months ended September 30, 2015:

	Restricted Stock Awards				Performance Stock Awards
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Target Shares		Weighted Average Grant Date Fair Value
Unvested restricted stock awards, January 1, 2015	659,650		$	5.72	218,175		$	5.82
Granted	220,160		$	11.52	163,340		$	11.86
Vested	(239,062	)	$	5.75	—		$	—
Forfeited	(50,618	)	$	6.44	(145,541	)	$	6.14
Unvested restricted stock awards, September 30, 2015	590,130		$	7.82	235,974		$	9.80

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the valuation of accounts receivable, goodwill and intangible assets, other long-lived assets, share-based compensation, accruals for health, workers’ compensation and professional liability claims, valuation of deferred tax assets, derivative liability, legal contingencies, future contingent considerations, income taxes and sales and other non-income tax liabilities. Accrued insurance claims and reserves include estimated settlements from known claims and actuarial estimates for claims incurred but not reported. Actual results could differ from those estimates.

Property and Equipment

During the nine months endedSeptember 30, 2015, the Company wrote off approximately $9.1 million of fully depreciated property and equipment.

Restructuring Costs

During the nine months endedSeptember 30, 2015, the Company incurred restructuring charges related to its cost optimization project. Restructuring costs totaled $1.1 million, including $0.6 million for exit costs related to lease consolidations and $0.5 million under the terms of the Company's ongoing benefit arrangement. The Company paid $0.2 million for exit liabilities and $0.4 million in post-employment benefits. As of September 30, 2015, the balance in the accrued restructuring liability was $0.5 million, including $0.1 million of post-employment benefits and $0.4 million for exit liabilities. There were no restructuring liabilities included on the condensed consolidated balance sheets as of December 31, 2014.

Recently Adopted Accounting Pronouncement

In January 2014, the Company adopted Accounting Standards Update (ASU) No. 2014-08 (ASU 2014-08), Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 provides new criteria for reporting discontinued operations and specifically indicates a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that will have a major effect on the Company’s operations and financial results. The new guidance also requires expanded disclosures for discontinued operations. In the third quarter of 2015, the Company disposed of a business that did not meet the criteria for presentation as discontinued operations. See Note 4 - Disposal for further information.

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SEGMENT DATA (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Information on Operating Segments and Reconciliation to Loss From Operations

Information on operating segments and areconciliation to income (loss) from operations for the periods indicated are as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015		2014			2015		2014
	(amounts in thousands)
Revenues:
Nurse and Allied Staffing (a)	$	157,338	$	147,851		$	459,127	$	311,814
Physician Staffing (a)	30,959		31,953			88,100		90,784
Other Human Capital Management Services	7,395		9,140			27,046		27,093
	$	195,692	$	188,944		$	574,273	$	429,691
Contribution income: (b)
Nurse and Allied Staffing (a)	$	16,251	$	12,691		$	39,368	$	25,388
Physician Staffing (a)	3,197		1,471			7,541		4,020
Other Human Capital Management Services	372		(55		)	1,721		(121		)
	19,820		14,107			48,630		29,287
Unallocated corporate overhead	8,110		7,945			23,799		19,325
Depreciation	953		1,005			2,902		2,796
Amortization	982		1,011			2,947		2,580
Loss on sale of business	2,184		—			2,184		—
Acquisition and integration costs	584		2,383			742		5,425
Restructuring costs	140		—			1,147		755
Income (loss) from operations	$	6,867	$	1,763		$	14,909	$	(1,594	)

_______________

(a) Effective January 1, 2015, we reclassified a portion of our business from the Physician Staffing segment to the Nurse and Allied Staffing segment. For the three and nine months ended September 30, 2014, revenue of $0.3 million and $1.5 million, respectively, and contribution income of less than $0.1 million for each period have been reclassified to conform to the current period presentation.

(b) The Company defines contribution income as income or loss from operations before depreciation, amortization, acquisition and integration costs, restructuring costs, impairment charges and corporate expenses not specifically identified to a reporting segment. Contribution income is a financial measure used by management when assessing segment performance and is provided in accordance with ASC 280, Segment Reporting Topic of the FASB ASC. 

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COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Equity [Abstract]
Cumulative impact of currency fluctuations	$ 1,200		$ 1,200		$ 1,100
Income tax expense related to items of other comprehensive income	$ 0	$ 0	$ 0	$ 162

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FAIR VALUE MEASUREMENTS - Schedule of reconciliation of opening and closing balances for fair value measurements categorized within Level 3 (Details) - Derivative Financial Instruments, Liabilities [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Convertible Note Derivative Liability
Beginning Balance	$ 20,927	$ 23,436
Purchases / Sales	0	0
Settlements	0	0
Valuation adjustment (a)	2,894	385	[1]
Ending Balance	$ 23,821	$ 23,821

[1] Loss on the valuation of the derivative liability is included as a line item as part of other expenses (income) on the condensed consolidated statements of operations. See Note 9 - Convertible Notes Derivative Liability for further information.

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 24,584	$ 4,995
Accounts receivable, net of allowances of $3,817 in 2015 and $1,425 in 2014	125,470	113,129
Income taxes receivable	158	307
Prepaid expenses	4,817	6,073
Insurance recovery receivable	3,156	5,624
Other current assets	1,539	1,055
Total current assets	159,724	131,183
Property and equipment, net of accumulated depreciation of $38,554 in 2015 and $47,590 in 2014	10,833	12,133
Trade names, net	38,201	38,201
Goodwill	80,758	90,647
Other identifiable intangible assets, net of accumulated amortization of $37,156 in 2015 and $34,209 in 2014	30,876	33,823
Debt issuance costs, net	973	1,257
Other non-current assets	18,361	17,889
Total assets	339,726	325,133
Current liabilities:
Accounts payable and accrued expenses	32,109	27,314
Accrued compensation and benefits	32,613	28,731
Current portion of long-term debt and capital lease obligations	88	3,607
Sales tax payable	2,545	2,573
Deferred purchase price	2,210	0
Deferred tax liabilities	2,039	1,981
Other current liabilities	2,511	2,790
Total current liabilities	74,115	66,996
Long-term debt and capital lease obligations, less current portion	71,918	70,467
Non-current deferred tax liabilities	16,598	18,038
Long-term accrued claims	30,594	32,068
Long-term deferred purchase price	0	2,333
Other long-term liabilities	4,482	4,899
Total liabilities	$ 197,707	$ 194,801
Commitments and contingencies
Stockholders' equity:
Common stock	$ 3	$ 3
Additional paid-in capital	248,698	247,467
Accumulated other comprehensive loss	(1,190)	(1,118)
Accumulated deficit	(105,958)	(116,474)
Total Cross Country Healthcare stockholders' equity	141,553	129,878
Noncontrolling interest	466	454
Total stockholders' equity	142,019	130,332
Total liabilities and stockholders' equity	$ 339,726	$ 325,133

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DEBT - Long- Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Capital lease obligations	$ 122	$ 202
Total debt	72,006	74,074
Less: Current portion	(88)	(3,607)
Long-term debt	71,918	70,467
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt	0	3,500
Term Loan Facility [Member]
Debt Instrument [Line Items]
Debt	29,157	28,989
Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Debt	18,906	17,947
Convertible Note Derivative Liability [Member]
Debt Instrument [Line Items]
Debt	$ 23,821	$ 23,436

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Statement of Cash Flows [Abstract]
Consolidated net income (loss)	$ 10,881	$ (11,448)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	5,849	5,376
Amortization of debt discount and debt issuance costs	1,411	590
Provision for allowances	1,550	721
Deferred income tax (benefit) expense	(1,387)	2,637
Loss on derivative liability	385	7,308
Equity compensation	1,773	958
Loss on sale of business	2,184	0
Other non-cash costs	20	99
Changes in operating assets and liabilities:
Accounts receivable	(13,927)	(11,201)
Prepaid expenses and other assets	1,779	267
Income taxes	(407)	(3,755)
Accounts payable and accrued expenses	7,825	3,242
Other liabilities	930	2,150
Net cash provided by (used in) operating activities	18,866	(3,056)
Cash flows from investing activities
Proceeds from sale of clinical trial services business segment, net of cash sold and transaction costs	7,500	3,750
Acquisition, net of cash acquired	(123)	(44,911)
Transaction costs related to sale of business	(338)	0
Purchases of property and equipment	(1,790)	(3,778)
Net cash provided by (used in) investing activities	5,249	(44,939)
Cash flows from financing activities
Proceeds from borrowing on Second Lien Term Loan	0	28,875
Proceeds from borrowing on Convertible Note	0	24,063
Repayments on Senior Secured Asset-Based revolving credit facility	(42,300)	(57,004)
Borrowings under Senior Secured Asset-Based revolving credit facility	38,800	53,105
Repayments of capital lease obligations	(80)	(96)
Repurchase of stock for tax withholdings	(543)	(245)
Cash payment to noncontrolling shareholder	(353)	0
Debt issuance costs	0	(1,053)
Net cash (used in) provided by financing activities	(4,476)	47,645
Effect of exchange rate changes on cash	(50)	27
Change in cash and cash equivalents	19,589	(323)
Cash and cash equivalents at beginning of period	4,995	8,055
Cash and cash equivalents at end of period	$ 24,584	$ 7,732

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SEGMENT DATA - Information on Operating Segments and Reconciliation to Loss From Operations (Details) - USD ($) $ in Thousands		3 Months Ended				9 Months Ended
		Sep. 30, 2015		Sep. 30, 2014		Sep. 30, 2015		Sep. 30, 2014
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues		$ 195,692		$ 188,944		$ 574,273		$ 429,691
Contribution income	[1]	19,820		14,107		48,630		29,287
Unallocated corporate overhead		8,110		7,945		23,799		19,325
Depreciation		953		1,005		2,902		2,796
Amortization		982		1,011		2,947		2,580
Loss on sale of business		2,184		0		2,184		0
Acquisition and integration costs		584		2,383		742		5,425
Restructuring costs		140		0		1,147		755
Income (loss) from operations		6,867		1,763		14,909		(1,594)
Prior Period Adjustment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues				300				1,500
Contribution income				100				100
Operating Segments [Member] | Nurse and allied staffing [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	[2]	157,338		147,851		459,127		311,814
Contribution income	[1],[2]	16,251		12,691		39,368		25,388
Operating Segments [Member] | Physician staffing [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	[2]	30,959		31,953		88,100		90,784
Contribution income	[1],[2]	3,197		1,471		7,541		4,020
Operating Segments [Member] | Other human capital management services [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues		7,395		9,140		27,046		27,093
Contribution income		$ 372	[1]	$ (55)	[1]	$ 1,721	[1]	$ (121)	[2]

[1] The Company defines contribution income as income or loss from operations before depreciation, amortization, acquisition and integration costs, restructuring costs, impairment charges and corporate expenses not specifically identified to a reporting segment. Contribution income is a financial measure used by management when assessing segment performance and is provided in accordance with ASC 280, Segment Reporting Topic of the FASB ASC.

[2] Effective January 1, 2015, we reclassified a portion of our business from the Physician Staffing segment to the Nurse and Allied Staffing segment. For the three and nine months ended September 30, 2014, revenue of $0.3 million and $1.5 million, respectively, and contribution income of less than $0.1 million for each period have been reclassified to conform to the current period presentation.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accounting Policies [Abstract]
Write off of property and equipment			$ 9,100,000
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 140,000	$ 0	1,147,000	$ 755,000
Cost Optimization Project [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs			1,100,000
Restructuring Reserve	500,000		500,000		$ 0
Exit Costs [Member] | Cost Optimization Project [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs			600,000
Payments for Restructuring			200,000
Restructuring Reserve	400,000		400,000
Ongoing Postemployment Benefits [Member] | Cost Optimization Project [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs			500,000
Payments for Restructuring			400,000
Restructuring Reserve	$ 100,000		$ 100,000

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RECENT ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Sep. 30, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

RECENT ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS

In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments. This ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Prior to the issuance of the ASU, entities were required to retrospectively apply adjustments made to provisional amounts recognized in a business combination. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and early adoption is permitted. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In August 2015, the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements to clarify the SEC staff's position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. Given the absence of authoritative guidance within ASU No. 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company expects to adopt this guidance when effective, with no significant impact on its financial position and results of operations.

In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other -Internal-Use Software (Subtopic 350-40), Customers Accounting for Fees Paid in a Cloud Computing Arrangement, to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license element, then the customer should account for the software license element arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments are effective for the Company for annual and interim periods beginning after December 15, 2015. A Company can elect prospective or retrospective adoption and early adoption is permitted. The Company expects to adopt this standard in its first quarter of 2016. The Company is currently evaluating the potential impact of the new guidance.

In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30),Simplifying the Presentation of Debt Issuance Costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This guidance is effective for the Company for fiscal years and interim periods beginning after December 15, 2015, and requires retrospective application. The Company expects to adopt this guidance when effective, and does not expect this guidance to have a significant impact on its financial statements, although it will change the financial statement classification of its debt issuance costs. As of September 30, 2015 and December 31, 2014, the Company had $1.0 million and $1.3 million of net debt issuance costs included on its condensed consolidated balance sheets. Under the new guidance, the net debt issuance costs would offset the carrying amount of the respective debt on the condensed consolidated balance sheets.

In May 2014, the FASB and the International Accounting Standards Board (IASB) jointly issued ASU No. 2014-9, Revenue from Contracts with Customers(Topic 606), which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (IFRS). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU was originally effective for public entities for annual and interim periods beginning after December 15, 2016. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers(Topic 606), Deferral of the Effective Date, which defers the effective date by one year and allows early adoption for all entities, however not before the original effective date of annual reports beginning after December 15, 2016. Retrospective application is permitted, but not required. The Company is currently evaluating the impact of adopting this guidance on its financial position and results of operations.

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ACQUISITIONS - Narrative (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended	15 Months Ended
	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Sep. 30, 2015	Jun. 29, 2014
Business Acquisition [Line Items]
Acquisition of assets of Medical Staffing Network, net of cash acquired				$ 123,000	$ 44,911,000
Adjustment for nonrecurring costs in net loss		$ 5,151,000	$ (7,484,000)	10,881,000	$ (11,448,000)
Term Loan Facility [Member]
Business Acquisition [Line Items]
Debt		29,157,000		29,157,000		$ 28,989,000	$ 29,157,000
Convertible Notes Payable [Member]
Business Acquisition [Line Items]
Debt		18,906,000		18,906,000		17,947,000	18,906,000
Revolving Credit Facility [Member] | First Lien Loan Agreement [Member]
Business Acquisition [Line Items]
Credit facility maximum borrowing capacity		85,000,000.0		85,000,000.0			85,000,000.0
Medical Staffing Network [Member]
Business Acquisition [Line Items]
Consideration transferred	$ 47,100,000
Cash acquired from acquisition	1,000,000
Acquisition of assets of Medical Staffing Network, net of cash acquired	44,600,000
Deferred consideration	$ 2,500,000	$ 2,200,000		$ 2,200,000			2,200,000
Period of deferred consideration (in months)	21 months
Additional exit liabilities							$ 300,000
Medical Staffing Network [Member] | Subordinated Debt [Member]
Business Acquisition [Line Items]
Debt	$ 55,000,000.0
Medical Staffing Network [Member] | Term Loan Facility [Member]
Business Acquisition [Line Items]
Debt	$ 30,000,000
Line of credit facility, term (in years)	5 years
Medical Staffing Network [Member] | Convertible Notes Payable [Member]
Business Acquisition [Line Items]
Debt	$ 25,000,000
Line of credit facility, term (in years)	6 years
Debt conversion price (in usd per share)	$ 7.10
Medical Staffing Network [Member] | Acquisition-related Costs [Member]
Business Acquisition [Line Items]
Adjustment for nonrecurring costs in net loss						$ 6,200,000
Medical Staffing Network [Member] | Revolving Credit Facility [Member] | First Lien Loan Agreement [Member]
Business Acquisition [Line Items]
Credit facility maximum borrowing capacity	$ 85,000,000.0							$ 65,000,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the valuation of accounts receivable, goodwill and intangible assets, other long-lived assets, share-based compensation, accruals for health, workers’ compensation and professional liability claims, valuation of deferred tax assets, derivative liability, legal contingencies, future contingent considerations, income taxes and sales and other non-income tax liabilities. Accrued insurance claims and reserves include estimated settlements from known claims and actuarial estimates for claims incurred but not reported. Actual results could differ from those estimates.

Recently Adopted Accounting Pronouncement

Recently Adopted Accounting Pronouncement

In January 2014, the Company adopted Accounting Standards Update (ASU) No. 2014-08 (ASU 2014-08), Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 provides new criteria for reporting discontinued operations and specifically indicates a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that will have a major effect on the Company’s operations and financial results. The new guidance also requires expanded disclosures for discontinued operations. In the third quarter of 2015, the Company disposed of a business that did not meet the criteria for presentation as discontinued operations. See Note 4 - Disposal for further information.

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ORGANIZATION AND BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

ORGANIZATION AND BASIS OF PRESENTATION

ORGANIZATION AND BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements include the accounts of Cross Country Healthcare, Inc. and its direct and indirect wholly-owned subsidiaries (collectively, the Company). The condensed consolidated financial statements include all assets, liabilities, revenue, and expenses of InteliStaf of Oklahoma, LLC, which is controlled by the Company but not wholly owned. The Company records the ownership interest of the noncontrolling shareholder as noncontrolling interest in subsidiary. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all entries necessary for a fair presentation of such unaudited condensed consolidated financial statements have been included. These entries consisted of all normal recurring items.

Subsidiary Changes

• During the third quarter of 2015, the Company completed the sale of its education seminars business, Cross Country Education, LLC. See Note 4 - Disposal.

• During the third quarter, Jamestown Indemnity, Ltd., a wholly-owned Cayman Island captive company, was voluntarily liquidated and, as a result, MDA now self-insures $0.5 million for each of its professional liability claims.

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. These operating results are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. The December 31, 2014 condensed consolidated balance sheet included herein was derived from the December 31, 2014 audited consolidated balance sheet included in the Company’s Annual Report on Form 10-K.

Certain prior year amounts have been reclassified to conform to the current period presentation. See Note 12 – Segment Data.

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 3,817	$ 1,425
Property and equipment, accumulated depreciation	38,554	47,590
Other intangible assets, accumulated depreciation	$ 37,156	$ 34,209

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STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Stock Repurchase Program

During both the nine months ended September 30, 2015 and 2014, the Company did not repurchase any shares of its Common Stock under its February 2008 Board authorization.

As of September 30, 2015, the Company may purchase up to an additional 942,443 shares of Common Stock under the February 2008 Board authorization, subject to certain conditions in the Company's First Lien Loan Agreement and Second Lien Term Loan Agreement. Subject to certain conditions as described in its First Lien Loan Agreement entered into on January 9, 2013, the Company may repurchase up to an aggregate amount of $5.0 million of its Equity Interests. At September 30, 2015, the Company had 31,552,231 shares of Common Stock outstanding.

Share-Based Payments

During the nine months endedSeptember 30, 2015, 220,160 of restricted stock awards and 163,340 of performance stock awards were granted under the 2014 Omnibus Incentive Plan to the Company's non-employee Directors and management team. In 2015, the Company changed the timing of its annual grants to management from June to March. Pursuant to the 2014 Omnibus Plan the number of target shares that are issued for performance-based stock awards are determined based on the level of attainment of the targets. If the minimum level of performance is attained for the 2015 awards, restricted stock will be issued with a vesting date of December 31, 2017, subject to the employee’s continuing employment. During the first quarter of 2015, the Company's Compensation Committee of the Board of Directors approved a 41.4% level of attainment for the 2014 performance-based share awards, resulting in the issuance of 86,661 shares of restricted stock that will vest on December 31, 2016.

The following table summarizes restricted stock awards and performance stock awards activity for the nine months ended September 30, 2015:

	Restricted Stock Awards				Performance Stock Awards
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Target Shares		Weighted Average Grant Date Fair Value
Unvested restricted stock awards, January 1, 2015	659,650		$	5.72	218,175		$	5.82
Granted	220,160		$	11.52	163,340		$	11.86
Vested	(239,062	)	$	5.75	—		$	—
Forfeited	(50,618	)	$	6.44	(145,541	)	$	6.14
Unvested restricted stock awards, September 30, 2015	590,130		$	7.82	235,974		$	9.80

During the three and nine months ended September 30, 2015, $0.6 million and $1.8 million, respectively, was included in selling, general and administrative expenses related to share-based payments, and a net of 10,330 and 190,631 shares, respectively, of Common Stock were issued upon the vesting of restricted stock.

During the three and nine months ended September 30, 2014, $0.4 million and $1.0 million, respectively, was included in selling, general and administrative expenses related to share-based payments. In addition, a net of 5,654 and 141,188 restricted shares of Common Stock vested in the three and nine months ended September 30, 2014, respectively.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document and Entity Information [Abstract]
Trading Symbol	CCRN
Entity Registrant Name	CROSS COUNTRY HEALTHCARE INC
Entity Central Index Key	0001141103
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		32,574,260

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SEGMENT DATA

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

SEGMENT DATA

SEGMENT DATA

In accordance with the Segment Reporting Topic of the FASB ASC, the Company reports three business segments – Nurse and Allied Staffing, Physician Staffing, and Other Human Capital Management Services. The Company manages and segments its business based on the services it offers to its customers as described below:

● Nurse and Allied Staffing – Nurse and Allied Staffing provides traditional staffing, including temporary and permanent placement of travel nurses and allied professionals and branch-based local nurses and allied staffing. Its clients include: public and private acute-care and non-acute care hospitals, government facilities, schools, outpatient clinics, ambulatory care facilities, retailers, and many other healthcare providers throughout the U.S.

● Physician Staffing – Physician Staffing provides physicians in many specialties, certified registered nurse anesthetists (CRNAs), nurse practitioners (NPs), and physician assistants (PAs) under the Company's MDA and Saber-Salisbury brands as independent contractors on temporary assignments throughout the U.S. at various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations.

● Other Human Capital Management Services – Subsequent to the sale of CCE, the education seminars business, on August 31, 2015, Other Human Capital Management Services includes retained and contingent search services for physicians and healthcare executives within the U.S.

The Company’s management evaluates performance of each segment primarily based on revenue and contribution income. The Company’s management does not evaluate, manage or measure performance of segments using asset information; accordingly, total asset information by segment is not prepared or disclosed. The information in the following table is derived from the segments’ internal financial information as used for corporate management purposes. Certain corporate expenses are not allocated to and/or among the operating segments.

Information on operating segments and areconciliation to income (loss) from operations for the periods indicated are as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015		2014			2015		2014
	(amounts in thousands)
Revenues:
Nurse and Allied Staffing (a)	$	157,338	$	147,851		$	459,127	$	311,814
Physician Staffing (a)	30,959		31,953			88,100		90,784
Other Human Capital Management Services	7,395		9,140			27,046		27,093
	$	195,692	$	188,944		$	574,273	$	429,691
Contribution income: (b)
Nurse and Allied Staffing (a)	$	16,251	$	12,691		$	39,368	$	25,388
Physician Staffing (a)	3,197		1,471			7,541		4,020
Other Human Capital Management Services	372		(55		)	1,721		(121		)
	19,820		14,107			48,630		29,287
Unallocated corporate overhead	8,110		7,945			23,799		19,325
Depreciation	953		1,005			2,902		2,796
Amortization	982		1,011			2,947		2,580
Loss on sale of business	2,184		—			2,184		—
Acquisition and integration costs	584		2,383			742		5,425
Restructuring costs	140		—			1,147		755
Income (loss) from operations	$	6,867	$	1,763		$	14,909	$	(1,594	)

_______________

(a) Effective January 1, 2015, we reclassified a portion of our business from the Physician Staffing segment to the Nurse and Allied Staffing segment. For the three and nine months ended September 30, 2014, revenue of $0.3 million and $1.5 million, respectively, and contribution income of less than $0.1 million for each period have been reclassified to conform to the current period presentation.

(b) The Company defines contribution income as income or loss from operations before depreciation, amortization, acquisition and integration costs, restructuring costs, impairment charges and corporate expenses not specifically identified to a reporting segment. Contribution income is a financial measure used by management when assessing segment performance and is provided in accordance with ASC 280, Segment Reporting Topic of the FASB ASC.

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Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenue from services	$ 195,692	$ 188,944	$ 574,273	$ 429,691
Operating expenses:
Direct operating expenses	144,206	141,667	427,387	319,528
Selling, general and administrative expenses	39,227	40,858	121,284	99,480
Bad debt expense	549	257	771	721
Depreciation	953	1,005	2,902	2,796
Amortization	982	1,011	2,947	2,580
Loss on sale of business	2,184	0	2,184	0
Acquisition and integration costs	584	2,383	742	5,425
Restructuring costs	140	0	1,147	755
Total operating expenses	188,825	187,181	559,364	431,285
Income (loss) from operations	6,867	1,763	14,909	(1,594)
Other expenses (income):
Interest expense	1,654	1,832	5,163	2,376
Loss on derivative liability	2,894	7,308	385	7,308
Other (income) expense, net	(100)	(62)	(30)	66
Income (loss) before income taxes	2,419	(7,315)	9,391	(11,344)
Income tax (benefit) expense	(2,732)	169	(1,490)	104
Consolidated net income (loss)	5,151	(7,484)	10,881	(11,448)
Less: Net income attributable to noncontrolling interest in subsidiary	142	118	365	118
Net income (loss) attributable to common shareholders	$ 5,009	$ (7,602)	$ 10,516	$ (11,566)
Net income (loss) per share attributable to common shareholders - Basic
Net (loss) income attributable to common shareholders (in usd per share)	$ 0.16	$ (0.24)	$ 0.33	$ (0.37)
Net income (loss) per share attributable to common shareholders - Diluted
Net (loss) income attributable to common shareholders (in usd per share)	$ 0.16	$ (0.24)	$ 0.33	$ (0.37)
Weighted average common shares outstanding:
Basic (shares)	31,541	31,245	31,412	31,165
Diluted (shares)	32,168	31,245	32,048	31,165

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EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

In accordance with the requirements of the Earnings Per Share Topic of the FASB ASC, basic earnings per share is computed by dividing net income available to common shareholders (numerator) by the weighted average number of vested unrestricted common shares outstanding during the period (denominator). Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period including stock appreciation rights and options and unvested restricted stock, as calculated utilizing the treasury stock method, and Convertible Notes using the if-converted method.

The following table sets forth the components of the numerator and denominator for the computation of the basic and diluted earnings per share:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015		2014			2015		2014
	(amounts in thousands, except per share data)
Numerator:
Net income (loss) attributable to common shareholders	$	5,009	$	(7,602	)	$	10,516	$	(11,566	)
Denominator:
Basic weighted average common shares	31,541		31,245			31,412		31,165
Effective of dilutive shares:
Share-based awards	627		—			636		—
Diluted weighted average common shares outstanding	32,168		31,245			32,048		31,165
Net income (loss) per share attributable to common shareholders - Basic	$	0.16	$	(0.24	)	$	0.33	$	(0.37	)
Net income (loss) per share attributable to common shareholders - Diluted	$	0.16	$	(0.24	)	$	0.33	$	(0.37	)

For the periods presented, no tax benefits have been assumed in the weighted average share calculation due to a full valuation allowance on the Company's deferred tax assets.

The following table represents the securities that could potentially dilute net income per share attributable to common shareholders in the future that were not included in the computation of diluted net income per share attributable to common shareholders because to do so would have been anti-dilutive for the periods presented:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2015	2014	2015	2014
Convertible notes and share-based awards	3,521,126	3,748,469	3,521,126	3,818,614

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COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME (LOSS)

Total comprehensive income (loss) includes net income or loss and foreign currency translation adjustments, net of any related deferred taxes. Certain of the Company’s foreign subsidiaries use their respective local currency as their functional currency. In accordance with the Foreign Currency Matters Topic of the FASB ASC,assets and liabilities of these operations are translated at the exchange rates in effect on the balance sheet date. Income statement items are translated at the average exchange rates for the period. The cumulative impact of currency fluctuations related to the balance sheet translation is included in accumulated other comprehensive loss in the accompanying condensed consolidated balance sheets and was approximately $1.2 million and $1.1 million, respectively, at September 30, 2015 and December 31, 2014.

There was no income tax impact related to foreign currency translation adjustments for the three and nine months ended September 30, 2015 and the three months endedSeptember 30, 2014. During the nine months ended September 30, 2014, the Company's condensed consolidated statements of other comprehensive income (loss) included income tax expense of $0.2 million related to foreign currency translation adjustments.

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SUBSEQUENT EVENT

9 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

SUBSEQUENT EVENT

SUBSEQUENT EVENT

On October 30, 2015, the Company completed the acquisition of all of the membership interests of New Mediscan II, LLC, Mediscan Diagnostic Services, LLC, and Mediscan Nursing Staffing, LLC (collectively “Mediscan”).  Mediscan provides temporary healthcare staffing and workforce solutions to both the healthcare and education markets - both public and charter schools. One of Mediscan’s founding members, as well as its President, are continuing with the business.

According to the terms of the agreement, the purchase price was $28.0 million in cash and $5.0 million in shares of the Company's Common Stock, subject to a net working capital adjustment. The Sellers are also eligible to receive an earn out based on Mediscan's 2016 and 2017 performance that could provide up to an additional $7.0 million of cash. The 349,871 shares of Common Stock issued in connection with the acquisition are subject to a lockup period. The acquisition was financed through a combination of cash-on-hand and borrowings under the Company's senior credit facility. The Company believes the transaction will be treated as a purchase of assets for income tax purposes.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Commitments

The Company has entered into non-cancelable operating lease agreements for the rental of office space and equipment. Certain of these leases include options to renew as well as rent escalation clauses and in certain cases, incentives from the landlord for rent-free months and premises reductions, and allowances for tenant improvements. The rent escalations and incentives have been reflected in the table below.

Future minimum lease payments, as of September 30, 2015, associated with these agreements with terms of one year or more are as follows:

Through Year Ending December 31:	(amounts in thousands)
2015	$	1,405
2016	6,331
2017	5,215
2018	3,866
2019	2,907
Thereafter	14,701
	$	34,425

Legal Contingencies

The Company is subject to legal proceedings and claims that arise in the ordinary course of its business. The Company does not believe the outcome of these matters will have a material adverse effect on the Company's business, financial condition, results of operations or cash flows.

Sales and Other State Non-income Tax Liabilities

The Company's sales and other state non-income tax filings are subject to routine audits by authorities in the jurisdictions where it conducts business in the United States which may result in assessments of additional taxes. The Company accrues sales and other non-income tax liabilities based on the Company's best estimate of its probable liability utilizing currently available information and interpretation of relevant tax regulations. Given the nature of the Company's business, significant subjectivity exists as to both whether sales and other state non-income taxes can be assessed on its activity and how the sales tax will ultimately be measured by the relevant jurisdictions. The Company makes a determination for each reporting period whether the estimates for sales and other non-income taxes in certain states should be revised. The expense is included in selling, general and administrative expenses on its condensed consolidated statements of operations and the liability is reflected in sales tax payable as of December 31, 2014 and September 30, 2015, on its condensed consolidated balance sheets.

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CONVERTIBLE NOTES DERIVATIVE LIABILITY

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

CONVERTIBLE NOTES DERIVATIVE LIABILITY

CONVERTIBLE NOTES DERIVATIVE LIABILITY

Derivative financial instruments, as defined in ASC 815, Accounting for Derivative Financial Instruments and Hedging Activities, consist of financial instruments or other contracts that contain a notional amount and one or more underlyings (e.g. interest rate, security price or other variable), require no initial net investment and permit net settlement. Derivative financial instruments may be free-standing or embedded in other financial instruments. Further, derivative financial instruments are initially, and subsequently, measured at fair value and recorded as liabilities or, in rare instances, assets.

The Company does not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, the Company issued Convertible Notes with features that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or (iii) may be net-cash settled by the counterparty. As required by ASC 815, in certain instances, these instruments are required to be carried as derivative liabilities, at fair value, in the financial statements.

The Convertible Notes issued in conjunction with the MSN acquisition are subject to anti-dilution adjustments that allow for the reduction in the Conversion Price, as defined in the agreement, in the event the Company subsequently issues equity securities including Common Stock or any security convertible or exchangeable for shares of Common Stock for a price less than the current conversion price. In addition, the Convertible Notes allow the issuer to exercise optional redemption features and the holder to exercise an offer to purchase feature, under certain conditions. The Company accounted for the conversion option in accordance with ASC 815. Since this conversion feature is not considered to be solely indexed to the Company’s own stock the derivative was recorded as a liability.

The Company’s Convertible Notes derivative liability is measured at fair value using a trinomial lattice model. The optional redemption features, along with the offer to purchase features are incorporated into the valuation model. Inputs into the model require estimates, including such items as estimated volatility of the Company's stock, estimated credit risk of the Company, estimated probabilities of change of control and issuance of additional financing, risk-free interest rate, and the estimated life of the financial instruments being fair valued. In addition, since the conversion price contains an anti-dilution adjustment, the probability that the Conversion Price of the Notes would decrease as the share price decreased is incorporated into the valuation calculation.

The inputs into the valuation model are as follows:

	September 30, 2015
Closing share price	$13.61
Conversion price	$7.10
Risk-free rate	1.34%
Expected volatility	40%
Dividend yield	—%
Expected life	4.75

The fair value of this derivative liability is primarily determined by fluctuations in our stock price. As of September 30, 2015, a $1 increase or decrease in our stock price would result in a corresponding increase or decrease of approximately $3.3 million in the fair value of the derivative liability, and a 1% increase or decrease in interest rates would result in a corresponding increase or decrease of approximately $0.9 million in the fair value of the derivative liability. These fluctuations result in a current period gain or loss that is presented on the condensed consolidated statements of operations as (gain) loss on derivative liability.

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COMMITMENTS AND CONTINGENIES (Details) $ in Thousands	Sep. 30, 2015 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2015	$ 1,405
2016	6,331
2017	5,215
2018	3,866
2019	2,907
Thereafter	14,701
Operating Leases, Future Minimum Payments Due	$ 34,425

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GOODWILL AND OTHER INTANGIBLES

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES

As of September 30, 2015 and December 31, 2014, the Company had the following acquired intangible assets:

	September 30, 2015						December 31, 2014
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(amounts in thousands)
Intangible assets subject to amortization:
Databases	$	22,425	$	13,727	$	8,698	$	22,425	$	12,893	$	9,532
Customer relationships	42,004		19,953		22,051		42,004		17,870		24,134
Non-compete agreements	3,603		3,476		127		3,603		3,446		157
	$	68,032	$	37,156	$	30,876	$	68,032	$	34,209	$	33,823
Intangible assets not subject to amortization:
Goodwill					$	80,758					$	90,647
Trade names					38,201						38,201
					$	118,959					$	128,848

The changes in the carrying amount of goodwill by segment are as follows:

	Nurse And Allied Staffing			Physician Staffing		Other Human Capital Management Services			Total
	(amounts in thousands)
Balances as of December 31, 2014
Aggregate goodwill acquired	$	287,667		$	43,405	$	19,307		$	350,379
Accumulated impairment loss	(259,732		)	—		—			(259,732		)
Goodwill, net of impairment loss	27,935			43,405		19,307			90,647
Changes to aggregate goodwill in 2015
Sale of CCE (a)	—			—		(9,889		)	(9,889		)
Balances as of September 30, 2015
Aggregate goodwill acquired	287,667			43,405		19,307			350,379
Sale of CCE (a)	—			—		(9,889		)	(9,889		)
Accumulated impairment loss	(259,732		)	—		—			(259,732		)
Goodwill, net of impairment loss	$	27,935		$	43,405	$	9,418		$	80,758

(a)    See Note 4 - Disposal for further information.

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DEBT

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

DEBT

DEBT

At September 30, 2015 and December 31, 2014, long-term debt consists of the following:

	September 30,			December 31,
	2015			2014
	(amounts in thousands)
Senior Secured Asset-Based, interest 2.61% at December 31, 2014	$	—		$	3,500
Second Lien Term Loan, net of unamortized discount of $843 and $1,011 at September 30, 2015 and December 31, 2014, respectively, interest 5.75% and 7.50% at September 30, 2015 and December 31, 2014, respectively	29,157			28,989
Convertible Notes, net of unamortized discount of $6,094 and $7,053 at September 30, 2015 and December 31, 2014, respectively, fixed rate interest of 8.00%	18,906			17,947
Convertible Notes derivative liability	23,821			23,436
Capital lease obligations	122			202
Total debt	72,006			74,074
Less: Current portion	(88		)	(3,607		)
Long-term debt	$	71,918		$	70,467

Senior Credit Facility

As of September 30, 2015, the First Lien Loan Agreement, with a termination date of June 30, 2017, provides for: a senior secured asset-based revolving credit facility in the aggregate principal amount of up to $85.0 million, which includes a subfacility for swingline loans up to an amount equal to 10% of the aggregate Revolver Commitments, as defined in the agreement, and a $35.0 million subfacility for standby letters of credit. 

The revolving credit facility can be used to provide ongoing working capital and for other general corporate purposes of the Company and its subsidiaries. As of September 30, 2015, the interest rate spreads and fees under the First Lien Loan Agreement are based on LIBOR plus 1.50% or Base Rate plus 0.50%. The LIBOR and Base Rate margins are subject to performance pricing adjustments, pursuant to a pricing matrix based on the Company’s excess availability under the revolving credit facility, and could increase by 200 basis points if an event of default exists. The Company is required to pay a monthly commitment fee on the average daily unused portion of the revolving loan facility, which, as of September 30, 2015, was 0.375%.

As of September 30, 2015, the Gross Availability, as defined in the First Lien Loan Agreement, was approximately $70.7 million based on the Company's accounts receivable balance as of August 31, 2015. The Company had $23.5 million letters of credit outstanding and no borrowings drawn under its revolving credit facility, leaving $47.2 million available as of September 30, 2015. The letters of credit relate to the Company’s workers’ compensation and professional liability insurance policies.

Second Lien Term Loan

The Second Lien Term Loan Agreement provides for a five-year senior secured term loan facility in an aggregate principal amount of $30.0 million (the loans thereunder, the Second Lien Term Loan).

On July 22, 2015, the Company entered into an amendment to its Second Lien Term Loan. Under the terms of the amendment, the interest rate on the Second Lien Term Loan was modified at no cost from LIBOR (defined as the 3-month London interbank offered rate for U.S. dollars, adjusted for customary Eurodollar reserve requirements, if any, and subject to a1% floor) plus 6.50% to LIBOR (1% floor) plus a rate based on the Company's total net leverage ratio, as defined in the table that follows. As of September 30, 2015, the Second Lien Term Loan bore interest at a rate equal to adjusted LIBOR(1% floor) plus 4.75%. The interest rate is subject to an increase by 200 basis points if an event of default exists under the Second Lien Term Loan Agreement.

Pricing Level	Total Net Leverage Ratio	Applicable Margin
I	Less than 2.50:1.00	4.75%
II	Greater than or equal to 2.50:1.00 but less than or equal to 3.25:1.00	5.25%
III	Greater than 3.25:1.00  but less than or equal to 4:00:1.00	5.75%
IV	Greater than 4.00:1.00	6.50%
Above terms defined in accordance with the Second Lien Term Loan Agreement.

The Company may, at its option at any time, prepay the Second Lien Term Loan in whole or in part at the redemption prices set forth therein, which range from 103% of the principal amount thereof for prepayments during the period July 1, 2015 through June 30, 2016, 102% of the principal amount thereof for prepayments during the period July 1, 2016 through June 30, 2017, and 100% of the principal amount thereof for prepayments after such date.

Subject to certain exceptions, the Second Lien Term Loan is required to be prepaid with: (a) 50% of excess cash flow (as defined in the Second Lien Term Loan Agreement) above $5.0 million for each fiscal year of the Company (commencing with the fiscal year ending December 31, 2015), provided that voluntary prepayments of the Second Lien Term Loan made during such fiscal year will reduce the amount of excess cash flow prepayments required for such fiscal year on a dollar-for-dollar basis; (b) 100% of the net cash proceeds of all asset sales or other dispositions of property by the Company and its subsidiaries, as set forth in the agreement, in excess of a defined threshold and subject to the right of the Company to reinvest such proceeds within 12 months; (c) 100% of the net cash proceeds of issuances of debt offerings of the Company and its subsidiaries (except the net cash proceeds of any permitted debt); and (d) 50% of the net cash proceeds of equity offerings of the Company.

The Second Lien Term Loan Agreement contains customary representations, warranties, and affirmative covenants. Among other things, the agreement also includes a financial covenant limiting the Company’s maximum “debt” to “EBITDA” (each, as defined therein) ratio to no greater than 4.50:1.00, subject to customary equity cure rights. As of September 30, 2015, the Company was in compliance with the financial covenants and other covenants contained in the agreement. The "debt" to "EBITDA" ratio was 0.9:1.00 as of September 30, 2015.

Convertible Notes

As of September 30, 2015, the Convertible Notes are convertible at the option of the holders thereof at any time into shares of the Company’s common stock, par value $0.0001 per share (Common Stock), at an initial conversion price of $7.10 per share, or 3,521,126 shares of Common Stock. After three years from the issuance date, the Company has the right to force a conversion of the Convertible Notes if the volume-weighted average price (VWAP) per share of its Common Stock exceeds 125% of the then conversion price for 20 days of a 30 day trading period. The conversion price is subject to adjustment pursuant to customary weighted average anti-dilution provisions including adjustments for the following: Common Stock dividends or distributions; issuance of any rights, warrants of options to acquire Common Stock; distributions of property; tender offer or exchange offer payments; cash dividends; or certain issuances of Common Stock at less than the conversion price. Upon conversion of the Convertible Notes, the Company will exchange, for the applicable conversion amount thereof a number of shares of Common Stock, with no maximum, on amount, equal to the amount determined by dividing (i) such conversion amount by (ii) the conversion price in effect at the time of conversion. No fractional shares of Common Stock will be issued upon conversion of the Conversion Notes. In lieu of fractional shares, the Company shall pay cash in respect of each fractional share equal to such fractional amount multiplied by the 30-day VWAP as of the closing of business on the Business Day immediately preceding the conversion date as well as any unpaid accrued interest.

The Convertible Notes bear interest at a rate of 8.00% per annum, payable in quarterly cash installments; provided, however, that, at the Company’s option, up to 4.00% of the interest payable may be “paid-in-kind” through a quarterly addition of such “paid-in-kind” interest amount to the principal amount of the Convertible Notes. The Convertible Notes will mature on June 30, 2020, unless earlier repurchased, redeemed or converted. Subject to certain exceptions, the Company is not permitted to redeem the Convertible Notes until June 30, 2017. If the Company redeems the Convertible Notes on or after June 30, 2017, the Company is required to pay a premium of 15% of the amount of principal of the Convertible Notes redeemed.

If the Convertible Notes are redeemed prior to June 30, 2017, pursuant to a Prohibited Transaction, as defined by the agreement, the Company is required to pay a premium equal to the greater of (i) the sum of (a) the amount of principal of the Convertible Notes redeemed, plus (b) the accrued but unpaid interests on the principal amount so redeemed to the date of the redemption, plus (c) a “make whole” amount (described below) and (ii) the sum of (x) the average 30-day VWAP per share of Common Stock multiplied by the number of shares of Common Stock that the redeemed Convertible Notes are then convertible into, with no maximum, and (y) the accrued but unpaid interest on the Convertible Notes. The “make whole” amount is equal to the excess, if any, of (1) the present value at the date of redemption of (A) 115% of the principal amount of the Convertible Notes redeemed, plus (B) all remaining scheduled interest due on the principal amount of the notes being redeemed through June 30, 2017 computed using a discount rate equal to the Treasury rate as of the date of redemption plus 50 basis points over (2) the outstanding principal amount of the Convertible Notes then redeemed.

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FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

The Fair Value Measurements and Disclosures Topic of the FASB ASC defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Fair Value Measurements and Disclosures Topic also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Items Measured at Fair Value on a Recurring Basis

At September 30, 2015 and December 31, 2014, the Company’s financial assets/liabilities required to be measured on a recurring basis were: contingent consideration receivable, deferred compensation liability included in other long-term liabilities, and Convertible Notes derivative liability included in long-term debt and capital lease obligations on the condensed consolidated balance sheets.

Contingent consideration receivable, earn out—The earn out related to the Company's sale of CCE was treated as a contingent consideration receivable for accounting purposes. The Company utilized Level 3 inputs to value the contingent consideration receivable as significant unobservable inputs were used in the calculation of its fair value and related to the future performance of the disposed business. The fair value of the contingent consideration receivable will be adjusted to its fair value on a quarterly basis with any adjustment to the related receivable and the loss on the sale of the business. The future performance of the disposed business will directly impact the contingent consideration that could be paid to the Company. The Company assigned no fair value to this earn out as of September 30, 2015 based on the information available to the Company. See Note 4 - Disposal.

Deferred compensation—The Company utilizes Level 1 inputs to value its deferred compensation liability. The Company’s deferred compensation liability is measured using publicly available indices that define the liability amounts, as per the plan documents.

Convertible Notes derivative liability—The Company utilizes Level 3 inputs to value its Convertible Notes derivative liability. See Note 9 - Convertible Notes Derivative Liability.

The table which follows summarizes the estimated fair value of the Company’s financial assets and liabilities measured on a recurring basis as of September 30, 2015 and December 31, 2014:

Fair Value Measurements

	September 30, 2015		December 31, 2014
Financial Liabilities:	(amounts in thousands)
(Level 1)
Deferred compensation	$	1,390	$	1,510
(Level 3)
Convertible Notes derivative liability	$	23,821	$	23,436

The table which follows reconciles the opening balances to the closing balances for fair value measurements of the Convertible Notes derivative liability categorized within Level 3 of the fair value hierarchy:

	Three Months Ended		Nine Months Ended
	September 30, 2015		September 30, 2015
	(amounts in thousands)
Beginning Balance	$	20,927	$	23,436
Purchases / Sales	—		—
Settlements	—		—
Valuation adjustment (a)	2,894		385
Ending Balance	$	23,821	$	23,821

_______________

(a) Loss on the valuation of the derivative liability is included as a line item as part of other expenses (income) on the condensed consolidated statements of operations. See Note 9 - Convertible Notes Derivative Liability for further information.

Items Measured at Fair Value on a Non-Recurring Basis

Goodwill, trade names, and other identifiable intangible assets are reviewed for impairment annually, and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the testing performed indicates that impairment has occurred, the Company records a non-cash impairment charge for the difference between the carrying amount of the goodwill or other intangible assets and the implied fair value of the goodwill or other intangible assets in the period the determination is made.

As of October 1, 2014, in conjunction with the annual testing of indefinite-lived intangible assets not subject to amortization,

the Company recorded a pretax non-cash impairment charge of approximately $10.0 million related to its Medical Doctor Associates (MDA) trade names. The Company reduced its long-term revenue forecast for these businesses as part of its forecasting process in the fourth quarter and as a result, the calculation of estimated fair value was less than the carrying amount of the trade names, resulting in an impairment charge.

The table below presents the fair value of the MDA trade names as of December 31, 2014.

Fair Value Measurements
	December 31, 2014
	(amounts in thousands)
(Level 3)
MDA Trade names	$	17,699

Other Fair Value Disclosures

Financial instruments not measured or recorded at fair value in the accompanying condensed consolidated balance sheets consist of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and short and long-term debt. The estimated fair value of accounts receivable, accounts payable and accrued expenses approximate their carrying amount due to the short-term nature of these instruments. The estimated fair value of the Company's debt was calculated using discounted cash flow analysis and appropriate valuation methodologies using Level 2 inputs from available market information.

The following table represents the carrying amounts and estimated fair value of the Company’s significant financial instruments that were not measured at fair value:

	September 30, 2015				December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities:			(amounts in thousands)
(Level 2)
Second Lien Term Loan, net (a)	$	29,157	$	30,600	$	28,989	$	29,900
Convertible Notes, net (a)	$	18,906	$	23,000	$	17,947	$	19,200
Senior Secured Asset-Based Loan (b)	$	—	$	—	$	3,500	$	3,500

 _______________

(a) The Second Lien Term Loan and Convertible Notes are reported at their carrying value in the accompanying condensed consolidated balance sheets. The Company determined their fair value, as presented in the table using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issuances with similar remaining years to maturity, adjusted for credit risk.

(b) Carrying value of the Senior Secured Asset-Based Loan approximates estimated fair value based on the short-term nature and the pricing at varying interest rates.

Concentration of Risk

The Company has invested its excess cash in highly-rated overnight funds and other highly-rated liquid accounts. The Company has been exposed to credit risk associated with these investments. The Company minimizes its credit risk relating to these positions by monitoring the financial condition of the financial institutions involved and by primarily conducting business with large, well established financial institutions and diversifying its counterparties.

The Company generally does not require collateral and mitigates its credit risk by performing credit evaluations and monitoring at-risk accounts. The allowance for doubtful accounts represents the Company’s estimate of uncollectible receivables based on a review of specific accounts and the Company’s historical collection experience. The Company writes off specific accounts based on an ongoing review of collectability as well as past experience with the customer. The Company’s contract terms typically require payment between 15 to 60 days from the date services are provided and are considered past due based on the particular negotiated contract terms. Overall, based on the large number of customers in differing geographic areas, primarily throughout the United States and its territories, the Company believes the concentration of credit risk is limited.

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SUBSEQUENT EVENT (Details) - Mediscan [Member] - Subsequent Event [Member]	Oct. 30, 2015 USD ($) shares
Subsequent Event [Line Items]
Cash consideration	$ 28,000,000
Consideration transferred, common shares, value	5,000,000
Contingent liability	$ 7,000,000.0
Consideration transferred, common shares | shares	349,871

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RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Debt issuance costs, net	$ 973	$ 1,257

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ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Millions	Sep. 30, 2015 USD ($)
Medical Doctor Associates [Member] | Uninsured Risk [Member]
Loss Contingencies [Line Items]
Possible liability on each professional liability claim	$ 0.5

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FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions		9 Months Ended
	Oct. 01, 2014	Sep. 30, 2015
Trade Names [Member] | Physician Staffing [Member]
Fair Value Measurement [Line Items]
Impairment of intangible assets, indefinite-lived (excluding goodwill)	$ 10.0
Minimum [Member]
Fair Value Measurement [Line Items]
Threshold period, past due for payment of services provided (in days)		15 days
Maximum [Member]
Fair Value Measurement [Line Items]
Threshold period, past due for payment of services provided (in days)		60 days

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RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

The Company provides services to hospitals which are affiliated with certain members of the Company’s Board of Directors. Management believes services with related parties were conducted on terms equivalent to those prevailing in an arm's-length transaction. Revenue related to these transactions was $2.8 million and $9.0 million for the three and nine months ended September 30, 2015, respectively. Revenue related to these transactions was $6.0 million and $11.4 million for the three and nine months ended September 30, 2014, respectively. Accounts receivable due from these hospitals at September 30, 2015 and December 31, 2014 were approximately $1.2 million and $2.0 million, respectively.

In connection with the acquisition of MSN, the Company acquired a 68% ownership interest in InteliStaf of Oklahoma, LLC, a joint venture between the Company and a hospital system. The Company generated revenue providing staffing services to the hospital system of $2.6 million and $6.9 million for the three and nine months ended September 30, 2015, respectively. Revenue related to these services was $2.5 million for the three months ended September 30, 2014. At September 30, 2015 and December 31, 2014, the Company had a receivable balance of $0.5 million and $0.9 million, respectively, and a payable balance of $0.1 million at the end of each period, relating to these staffing services.

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EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Components of Numerator and Denominator for Computation of Basic and Diluted Earnings per Share

The following table sets forth the components of the numerator and denominator for the computation of the basic and diluted earnings per share:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015		2014			2015		2014
	(amounts in thousands, except per share data)
Numerator:
Net income (loss) attributable to common shareholders	$	5,009	$	(7,602	)	$	10,516	$	(11,566	)
Denominator:
Basic weighted average common shares	31,541		31,245			31,412		31,165
Effective of dilutive shares:
Share-based awards	627		—			636		—
Diluted weighted average common shares outstanding	32,168		31,245			32,048		31,165
Net income (loss) per share attributable to common shareholders - Basic	$	0.16	$	(0.24	)	$	0.33	$	(0.37	)
Net income (loss) per share attributable to common shareholders - Diluted	$	0.16	$	(0.24	)	$	0.33	$	(0.37	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table represents the securities that could potentially dilute net income per share attributable to common shareholders in the future that were not included in the computation of diluted net income per share attributable to common shareholders because to do so would have been anti-dilutive for the periods presented:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2015	2014	2015	2014
Convertible notes and share-based awards	3,521,126	3,748,469	3,521,126	3,818,614

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DEBT - Private Placement of Convertible Notes Narrative (Details) - Convertible Senior Notes [Member]	9 Months Ended
	Sep. 30, 2015 instrument d $ / shares	Sep. 30, 2014
Debt Instrument [Line Items]
Common stock, par value (in usd per share)	$ 0.0001
Debt conversion price (in usd per share)	$ 7.10
Debt instrument, convertible, number of equity instruments | instrument	3,521,126
Debt Instrument, convertible, threshold period following issuance date (in years)	3 years
Debt instrument, convertible, threshold percentage of stock price trigger	125.00%
Debt instrument, convertible, threshold trading days | d	20
Debt instrument, convertible, threshold consecutive trading days	30 days
Unamortized Discount		8.00%
Debt instrument, interest, percent paid in kind, maximum	4.00%
Convertible debt redeemed after permissible date, redemption premium, percent of principal	15.00%
Convertible debt redeemed before permissible date, redemption premium, percent of principal	115.00%
Treasury Rate [Member]
Debt Instrument [Line Items]
Convertible debt, basis spread on discount rate on redemption, percentage	0.50%

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EARNINGS PER SHARE - Components of Numerator and Denominator for Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net Income (Loss) Available to Common Stockholders, Diluted	$ 5,009	$ (7,602)	$ 10,516	$ (11,566)
Net income (loss) per share attributable to common shareholders - Basic
Basic weighted average common shares	31,541	31,245	31,412	31,165
Net (loss) income attributable to common shareholders (in usd per share)	$ 0.16	$ (0.24)	$ 0.33	$ (0.37)
Effective of dilutive shares:
Share-based awards (shares)	627	0	636	0
Net income (loss) per share attributable to common shareholders - Diluted
Net (loss) income attributable to common shareholders (in usd per share)	$ 0.16	$ (0.24)	$ 0.33	$ (0.37)
Diluted weighted average common shares outstanding	32,168	31,245	32,048	31,165

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Consolidated net income (loss)	$ 5,151	$ (7,484)	$ 10,881	$ (11,448)
Other comprehensive income, before income tax:
Unrealized foreign currency translation (loss) gain	(54)	(34)	(72)	58
Other comprehensive (loss) income, before income taxes	(54)	(34)	(72)	58
Income tax expense related to items of other comprehensive income	0	0	0	162
Other comprehensive loss, net of tax	(54)	(34)	(72)	(104)
Comprehensive income (loss)	5,097	(7,518)	10,809	(11,552)
Less: Net income attributable to noncontrolling interest in subsidiary	142	118	365	118
Comprehensive income (loss) attributable to common shareholders	$ 4,955	$ (7,636)	$ 10,444	$ (11,670)

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DISPOSAL

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

DISPOSAL

DISPOSAL

Cross Country Education

On July 21, 2015, the Company's Board of Directors approved an agreement to sell the Company's education seminars business, Cross Country Education, LLC ("CCE"). CCE provided in-person seminars to healthcare professionals and was non-core to the Company’s business. The Company used the net proceeds from the transaction to finance the Mediscan acquisition in the fourth quarter of 2015. See Note 17 - Subsequent Event. Since the disposal of the education seminars business does not represent a strategic shift that will have a major effect on the Company’s operations and financial results, it has not been reflected as discontinued operations.

On July 27, 2015, the Company entered into an Agreement and Plan of Merger to sell its wholly-owned subsidiary, CCE, to a third party, PESI, Inc. ("Buyer"). On August 31, 2015, the Company completed the sale of CCE to the Buyer. The Company received $8.0 million in cash, subject to a net working capital adjustment, of which $0.5 million will be held in escrow for a period of 12 months following the closing to provide partial security to Buyer in the event of any breach of the representations, warranties and covenants of the Company. The Company recorded the $0.5 million indemnity escrow funds as an escrow receivable.

The purchase price also included an earn out of up to $0.5 million related to the performance of CCE for the year ended 2015, which is unlikely to be made. See Note 10 - Fair Value Measurements.

The operating results of CCE were included in the Other Human Capital Management Services segment. See Note 12 - Segment Data for further information.

The Company has agreed that for a period of five years from the closing date, it will not engage in the business of providing education seminars as such business is presently conducted by CCE, or solicit customers of CCE for purposes of diverting their business from CCE.

The Company recognized a pre-tax loss of $2.2 million related to the sale of the business, which is included in income (loss) from operations in its condensed consolidated statements of operations for the three and nine months ended September 30, 2015.

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SEGMENT DATA - Narrative (Details)	9 Months Ended
	Sep. 30, 2015 segment
Segment Reporting [Abstract]
Number of operating segments	3

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GOODWILL AND OTHER INTANGIBLES (Tables)

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Acquired Intangible Assets

As of September 30, 2015 and December 31, 2014, the Company had the following acquired intangible assets:

	September 30, 2015						December 31, 2014
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(amounts in thousands)
Intangible assets subject to amortization:
Databases	$	22,425	$	13,727	$	8,698	$	22,425	$	12,893	$	9,532
Customer relationships	42,004		19,953		22,051		42,004		17,870		24,134
Non-compete agreements	3,603		3,476		127		3,603		3,446		157
	$	68,032	$	37,156	$	30,876	$	68,032	$	34,209	$	33,823
Intangible assets not subject to amortization:
Goodwill					$	80,758					$	90,647
Trade names					38,201						38,201
					$	118,959					$	128,848

Changes in Carrying Amount of Goodwill by Segment

The changes in the carrying amount of goodwill by segment are as follows:

	Nurse And Allied Staffing			Physician Staffing		Other Human Capital Management Services			Total
	(amounts in thousands)
Balances as of December 31, 2014
Aggregate goodwill acquired	$	287,667		$	43,405	$	19,307		$	350,379
Accumulated impairment loss	(259,732		)	—		—			(259,732		)
Goodwill, net of impairment loss	27,935			43,405		19,307			90,647
Changes to aggregate goodwill in 2015
Sale of CCE (a)	—			—		(9,889		)	(9,889		)
Balances as of September 30, 2015
Aggregate goodwill acquired	287,667			43,405		19,307			350,379
Sale of CCE (a)	—			—		(9,889		)	(9,889		)
Accumulated impairment loss	(259,732		)	—		—			(259,732		)
Goodwill, net of impairment loss	$	27,935		$	43,405	$	9,418		$	80,758

(a)    See Note 4 - Disposal for further information.

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ACQUISITIONS - Schedule of Pro-forma Information (Details) - Medical Staffing Network [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2014 USD ($) $ / shares
Business Acquisition [Line Items]
Revenue from services	$ 551,761
Net loss	$ (9,688)
Net loss per common share attributable to common shareholders - basic (in usd per share) | $ / shares	$ (0.31)
Net loss per common share attributable to common shareholders - diluted (in usd per share) | $ / shares	$ (0.31)

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INCOME TAXES

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

For the periods ended September 30, 2015 and 2014, the Company has calculated its effective tax rate based on year-to-date results (under ASC 740-270-30-18) as opposed to estimating its annual effective tax rate. The Company’s effective tax rate for the three and nine months ended September 30, 2015 was (113.0)% and (15.9)%, respectively, including the impact of discrete items. Excluding discrete items, the Company’s effective tax rate for the three and nine months ended September 30, 2015 was 30.1% and 22.6%, respectively. The effective tax rates are different than the statutory rates primarily due to the impact from amortization of indefinite-lived intangible assets for tax purposes, the partial non-deductibility of certain per diem expenses and international and state minimum taxes, which are partly offset by the reduction in unrecognized tax benefits due to the settlement of certain state examinations. In addition, the effective tax rate in the three and nine months ended September 30, 2015 was impacted by the reversal of valuation allowances related to the sale of CCE.

The Company records valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required often requires significant judgment, including the long-range forecast of future taxable income and the evaluation of tax planning initiatives. Adjustments to the deferred tax valuation allowances are made to earnings in the period when such assessments are made. The Company intends to maintain a valuation allowance until sufficient positive evidence exists to support its reversal.

In the three and nine months ended September 30, 2015, the Company recorded a benefit of $3.5 million from the reversal of valuation allowances associated with the disposal of CCE. Due to the historical losses from the Company's operations, it has recorded a full valuation allowance on its deferred tax assets. In the first quarter of 2014, the Company recorded a non-cash adjustment of $1.7 million primarily related to an overstatement of the valuation allowance established as of December 31, 2013.

As of September 30, 2015, the Company had approximately $3.9 million of unrecognized tax benefits included in other current liabilities and other long-term liabilities ($3.6 million, net of deferred taxes, which would affect the effective tax rate if recognized). During the nine months endedSeptember 30, 2015, the Company had gross increases of $0.7 million to its current year unrecognized tax benefits related to federal and state tax issues and had gross decreases of $0.6 million to its current year unrecognized tax benefits related to settlements.

The tax years of 2004, 2005, 2008, and 2010 through 2014 remain open to examination by certain taxing jurisdictions to which the Company is subject to tax, other than certain states in which the statute of limitations has been extended.