Article
The deal
Knox Lane will pay $13.25 a share in cash, about 31% above Cross Country’s closing price on May 6. The company will leave Nasdaq, keep its name and become a platform in Knox Lane’s portfolio, which already includes staffing firm All Star Healthcare. Closing is expected in the third quarter, subject to stockholder and regulatory approvals.
The price is roughly 29% below the $615 million Aya Healthcare agreed to pay in late 2024. That deal drew significant competitive concerns from the Federal Trade Commission, which argued the combination could raise hospital costs. The agreement fell apart in December 2025, the chief executive stepped down and co-founder Kevin Clark returned to lead the company.
What the numbers say
Cross Country’s first-quarter revenue fell 18% from a year earlier to $241.1 million, and it posted a $4.3 million net loss. Hospitals relied heavily on travel nurses and temporary physicians during the pandemic, at high cost. That reliance has eased, though demand remains elevated.
What it means for hospital leaders
- Leverage has shifted. A shrinking staffing market gives health systems room to renegotiate bill rates, markups and minimum commitments.
- Watch ownership changes. Private equity owners often push for growth through acquisitions and technology. Review contract terms on data, pricing changes and assignment rights when a vendor changes hands.
- Vendor concentration still matters. The FTC’s stance on the Aya deal suggests regulators will scrutinize further consolidation, but systems should still avoid depending on one agency.
- Keep building internal pools. Float pools, internal travel programs and per diem staff remain cheaper than agency labor and give more control over quality and scheduling.
Labor is a major expense for every health system. Contract labor is no longer the crisis it was, but holding the savings depends on keeping vacancy and turnover in check.
Archive entry for May 8, 2026, added Nov. 11, 2026.