What is a Managed Service Provider (MSP)?
A Managed Service Provider (MSP) is an outsourced agency that a hospital or healthcare system hires to manage the contingent healthcare workforce in its entirety. The MSP acts as an interface between the facility and other third-party staffing suppliers, creating a single point of contact, single contract, and consistently streamlined processes. In this model, the MSP finds, procures, and credentials temporary healthcare staff before they reach the facility, eliminating the time-consuming burden of talent acquisition and compliance for the facility’s administrative staff. MSPs also utilize a Vendor Management System (VMS) platform offering the same benefits without the hassle of managing the software. Utilizing an MSP means purchasing an all-inclusive service designed to protect your most valuable commodity, your time.
What is a Vendor Management System (VMS)?
A VMS is a software system that a hospital or healthcare system purchases or licenses that enables its users to manage their own contingent workforce. The software system can be used to collect supplemental staff requisitions, facilitate on-boarding, store candidate information, consolidate payroll, time tracking, and invoicing, as well as provide reporting capabilities. In this model, the facility would contract with many different third-party suppliers to obtain candidates; each of these companies would have its own separate points of contact, contracts, and processes. While this system can help consolidate the contingent workforce, the management of said software lies completely on the facility; in that regard, a VMS is more of an organizational tool rather than a time saving solution.
Is it possible to utilize individual staffing agreements?
Facilities can also contract with staffing agencies directly without using either an MSP or VMS. Under this arrangement, the facility would have separate one on one contracts with individual agencies; this would mean different bill rates, different professional fees, many points of contact, inconsistent processes, and varied service levels from each agency. While this model may be appealing if the volume of traveler needs is not that high, it can cause an administrative burden for the hospital staff who are required to coordinate with many different entities providing very different levels of service. This model is inherently complicated because there are many people involved; it can also increase the risk exposure for the facility as a result of inconsistencies in record keeping and credentialing of supplemental staff by the contracted agencies.
For more information on our MSP model, visit our facility page.