Exhibit 99.1
MEDICAL STAFFING NETWORK
HOLDINGS, INC.
Management Presentation
Lehman Brothers Seventh Annual Global Healthcare Conference
March 4, 2004
Safe Harbor Statement
---------------------
This presentation contains forward-looking statements, including those regarding
Medical Staffing Network Holdings, Inc. and the services it provides. Investors
are cautioned not to place an undue reliance on these forward-looking
statements, which will speak only as of the date of this presentation. These
statements involve known and unknown risks, uncertainties and other factors that
may cause actual results and performance to materially differ from any future
results or performance expressed or implied by these forward-looking statements.
A description of some of these factors can be found in our Annual Report for
2002, a copy of which has been posted on our website. Medical Staffing Network
Holdings, Inc. undertakes no obligation to publicly revise these forward-looking
statements.
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Company Overview
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o Founded in 1998 by members of the current management team
o Largest provider of per diem nurse staffing in the country
- Branch network of over 140 offices
- Local, regional and national operations
- Over 75% of locations developed under highly successful de novo
program
o Broad and diversified base of clients and professionals
- Over 7,000 client facilities served
- Over 37,000 active professionals in database
o Diversified service lines provide future growth opportunities
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Company Overview (continued)
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Revenue (in millions) Income from Operations (in millions)
1999 $94.5 1999 $4.9
2000 $178.4 2000 $10.3
2001 $338.2 2001 $18.8
2002 $478.8 2002 $37.8
2003 $513.0 2003 $17.5
Excludes revenue from the discontinued Excludes income (loss) from the discontinued
operations of physicians staffing of operations of physicians staffing of
$2.0, $3.6, $4.8, $4.7, $0.5 for the $0.1, $0.3, $0.5, $0.1, $(0.5) for the
years ended 1999, 2000, 2001, 2002, years ended 1999, 2000, 2001, 2002,
2003, respectively 2003, respectively
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3
Recent Market Conditions
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The temporary healthcare staffing industry's long-term future appears solid. The
industry is currently experiencing softness in demand due to:
o Hospitals are currently relying on increased utilization of full-time staff
- consequences are more overtime and higher patient loads
o Less demand due to lower than anticipated hospital admissions
o Unemployment rate near 9 year high - full-time staff are currently
accepting more stressful working conditions
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Long-Term Industry Growth Drivers
---------------------------------
o Significant increase in utilization of healthcare services as baby boomer
population ages
o Hospitals require a variable labor pool to deal with fluctuations in census
levels
o Significant burn out of full-time nursing professionals drives turnover and
increases utilization of temporary staff
o Increased staffing levels due to new staffing ratio and overtime
legislation in a number of states
o Long-term imbalance between supply and demand
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Supply - Demand Imbalance
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American Population Over 65 Registered Nurse Shortage Projection
(in millions) (in millions)
Year Supply Demand
2000 34.5 2000 1.89 2.00
2005 36.4 2005 2.01 2.16
2010 39.7 2010 2.07 2.34
2015 46.0 2015 2.06 2.56
2020 53.7 2020 2.00 2.81
Source: U.S. Census Bureau, Source: U.S. Department of Health and
Population Projections Bureau, Human Services, National Center for
January 13, 2000 Health Workforce Analysis, July 2002
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Industry Overview
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Temporary Healthcare Staffing Is Projecting Solid Growth
Amount
Year (in billions) Y/Y Growth
---- ------------- ----------
2001 $9.1 26.4%
2002 $11.4 25.2%
2003E $11.0 (3.5)%
2004E $11.6 5.5%
2005E $12.7 9.5%
2006E $14.0 10.2%
5 Year CAGR 9.5%
Source: Staffing Industry Analysts, Inc.
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Nurse Staffing Industry Overview
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PER DIEM NURSING (Largely fragmented)
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Market Size: Estimated $5.0 billion
Approximately 75% of nurse staffing industry
Market Concentration: Top 7 Companies = 25%
Nurse Availability: Large pool of available nurses
TRAVEL NURSING (Highly consolidated)
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Market Size: Estimated $1.6 billion
Approximately 25% of nurse staffing industry
Market Concentration: Top 2 Companies = 72%
Nurse Availability: Limited pool - generally young and/or
unmarried
"It's estimated that 70% of nurses are married & have or will
switch from full-time to part-time employment"
Peter Buerhaus, Ph.D., RN, FAAN
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Full-Service Healthcare Staffing Provider
-----------------------------------------
o Per diem nursing (72% of 2003 revenues; #1 market share)
- Assignments range from one shift to thirteen weeks
- Primarily serve acute care hospitals
o Allied staffing (17% of 2003 revenues)
- Specialize in diagnostic imaging and radiology technicians, clinical
laboratory technicians, therapy specialties and health information
management staff
o Travel nursing (11% of 2003 revenues)
- Assignment length is typically 13 weeks
- Synergistic opportunity to capture travel nurses into per diem pool at
end of travel assignments
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Emerging Trend Toward Consolidating
Per Diem Vendors
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o The healthcare industry has consolidated the vendor base for most of its
services and products
o 75% of per diem staffing services are provided by thousands of independent,
inefficient and geographically limited vendors
o Clients are showing growing interest in consolidating the number of vendors
in an effort to reduce administrative / procurement costs, improve quality
of service and standardize credentialing of supplemental nurses
o With the largest national footprint, a superior IT platform and other clear
competitive advantages, MSN is uniquely positioned to capitalize on this
developing trend
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Allied Division Diversification
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Leading provider of Allied services
Core Allied Specialties
o Radiology
o Laboratory
o Respiratory Therapy
New Specialties Added in 2002 and 2003
o Pharmacy
o Physical Therapy
o Local Surgical Technicians
Future Potential Diversification
o Speech Therapy
o Medical Record Technicians
o Occupational Therapy
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Competitive Strengths
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o Largest Network and Leading Brand Name
- Largest provider of per diem nurse staffing in the country
- Uniquely able to address needs of regional and national hospital
groups as they embrace vendor consolidation
- Widely recognized as high quality by healthcare providers and
professionals
o Advanced Information Systems Capability - in a market where the typical
competitor ("Mom & Pop") is not employing automated systems
- MSN IT Application allows for:
o Same day pay to healthcare staff
o MSN/Visa Debit Pay Card
o Automatic matches of staff and client orders
o Ability to network together individual branch databases to
address needs of regional clients
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Competitive Strengths (continued)
---------------------------------
o Proven ability to enter new markets through well developed de novo program
o Capacity to continue to add new service lines within Allied Healthcare
o Management expertise and well-developed, scaleable infrastructure
o Diversified service lines allow clients "one-stop" shopping and easier
implementation of vendor consolidation
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Current Strategic Initiatives
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o Vendor on Premise (VOP)
- Provide on-site management for all of a client's healthcare staffing
needs
o Vendor Management Service / Preferred Provider Program
- Provide clients with tools to efficiently broadcast and manage their
temporary staffing orders
- As Preferred Provider, MSN gains majority of client's business and
commits priority allocation of nursing pool to client
o Branch-in-Branch (BiB)
- Offer certain allied services at a local level through our existing
per diem branch network
- 2003 revenues from our BiB allied operations have increased more
than 60% from 2002
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Current Strategic Initiatives (continued)
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o Pharmacy
- Growing sector within the healthcare staffing industry
- Rapid expansion of retail drug stores - executed provider agreements
with leading retail pharmacies
o Travel nurse staffing
- Expanded presence in travel nurse staffing sector
- 2003 revenues from travel nurse staffing have increased more than
50% from 2002
o Core growth initiatives - de novo program and Allied BiB on hold until
demand strengthens
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