AMN 2017 Annual Report

2 When expanding our services and products, we consider the following key criteria: (1) addressing the most pressing current and future needs of our customers and talent network, (2) alignment with our core operations, expertise, and access to healthcare professionals, (3) strengthening and broadening of our client and healthcare professional relationships, (4) reduction in sensitivity to economic cycles and (5) enhancement of our long-term sustainable, differentiated business model. Since 2010, we have expanded, developed or acquired the following offerings: • Managed Services Programs . We acquired Medfinders, one of the nation’s leading providers of clinical workforce MSP, accelerating our growth in this area and clearly establishing AMN Healthcare as the nation’s largest provider of clinical workforce management solutions. • Vendor Management Systems . Through our acquisitions of ShiftWise and Medefis, we offer two industry-leading SaaS-based, vendor neutral management systems, which allows our clients to utilize a technology-based approach to more efficiently manage their contingent staffing needs. • Interim Leadership Staffing and Executive Search Services . We acquired B.E. Smith (“BES”) and The First String Healthcare (“TFS”), which we believe made us the nation’s largest provider of interim healthcare leadership staffing, including clinical leaders and executive leaders, healthcare executive search services and other related advisory services. • Workforce Optimization Services . Through our acquisition of Avantas, we offer workforce optimization services, including consulting, data analytics, predictive modeling and SaaS-based scheduling technology. We believe Avantas’ proprietary scheduling software helps create more cost effective staffing plans for our clients as compared to traditional methodologies. • Recruitment Process Outsourcing . We continue to invest in our RPO service line, adding technologies and other capabilities to meet our clients’ growing needs for core staff recruitment expertise and services and to capitalize on the market opportunity as it evolves. • Health Information Management. Through our acquisition of Peak Provider Solutions (“Peak”), we offer remote medical coding, case management and related health information management auditing and consulting solutions to hospitals and physician medical groups nationwide. • Expanded Our Network of Qualified Healthcare Professionals . Through our Onward Healthcare acquisition, we increased our supply of healthcare professionals and recruiting capabilities in our traditional healthcare staffing areas of nurse, allied and locum tenens. • Per Diem Staffing . Our acquisition of Medfinders provided us an entry point into the local, or per diem, staffing market. We provide per diem staffing, often in conjunction with our larger MSP clients. Through investment in new technologies, we are streamlining the match of the right clinicians to the right assignment to meet these on-demand needs. As a core component of our growth strategy and profitability, we also seek to strengthen and create efficiencies in our operational and technology capabilities. As a result, in 2015, we embarked on a multi-year investment in the modernization of our front office, back office and infrastructure domains. We have also increased our efforts to integrate technology-based solutions in recruitment through continued investment in our digital capabilities, mobile applications and data analytics. These efforts will provide a more seamless and efficient workflow for our team members, our healthcare professionals, and our clients. Further, updated business systems will help us realize greater scale and cost efficiencies when fully implemented. Moving forward, we believe our strategy will enable us to continue to grow the number of customers and segments of the market we serve, while enhancing our profitability and operating leverage. This means driving increased adoption of our existing workforce solutions and staffing services through cross selling and deepening our customer relationships as they grow and expand. We will continue to innovate, develop and invest in new, complementary solutions to our portfolio that optimize our clients’ workforce and better engage our talent networks. We expect this will help us expand our strategic customer relationships to help clients address their workforce pain points, while driving more recurring revenue, with an improved margin mix that, similar to our evolution to MSPs, will be less sensitive to economic cycles. The successful implementation of our strategy relies in large part upon the superior execution of our key initiatives by our management, sales and operations teams. Accordingly, our employment value proposition is differentiated to attract and retain high-quality team members. We foster a growth-oriented, values-driven culture, talented leadership, and a collegial work environment that challenges us to develop and meet our personal and professional goals. In 2017, AMN was recognized as #11 on the Fortune 100 Fastest Growing Companies list and was also named to the 2018 Human Rights Campaign Corporate Equality Index and 2018 Bloomberg Gender-Equality Index. AMN continues to be recognized as a leading employer and was recognized as a 2017 Becker’s Hospital Review Top 150 Places to Work in Healthcare and 2017 National Best & Brightest Companies to Work For lists. HRO Today awarded AMN Healthcare and our client, BJC HealthCare, as their 2017 Partnership