6 questions to ask when looking for a healthcare staffing partner

This article first appeared in SIA's Staffing Stream.

Healthcare organizations depend on contingent talent more than ever to create flexibility, support temporary needs and fill staffing gaps. Too often, however, organizations become overly reliant on staffing agencies to set market pay rates and dictate timing and contractual terms. Multiple agencies are required to meet specialty needs, forcing hospitals into dependence and limiting negotiating power.

There is a way out of this expensive, time-consuming pattern. Here’s how your organization can find the right healthcare workforce model.

Know Your Key Terms and Options

A managed service provider (MSP) is a third party that provides outsourced services, usually in the areas of staffing and recruitment, workforce management, managing vendors that provide equipment, compliance support and even IT services.

At the center of an MSP is its supplier network, the group of staffing agencies and contingent workforce providers fulfilling staffing requests through a broad and deep pool of qualified candidates. The network is managed by the MSP and typically spans multiple clinical specialties, clinician types and geographic regions.

Not all MSPs are structured the same. Staffing-led MSPs are operated by a single staffing agency that prioritizes filling positions through its own agency’s talent pool. This can limit access to the full breadth of market talent, driving up costs and creating potential conflicts of interest. A vendor-neutral MSP manages all agencies equally, ensuring a level playing field where the best candidate is prioritized.

A vendor management system (VMS) is a software platform for managing staffing agencies and vendors. Unlike industry-generic platforms, healthcare-specific VMS uniquely support credentialing, license verification, scheduling, compliance and billing.

Advisory services help healthcare systems optimize workforce planning, implement data-driven staffing decisions and manage other aspects of HR and recruitment. Services can vary in scope of expertise and level of client engagement.

Finally, healthcare systems may encounter other proprietary tools such as mobile apps and software platforms that specialize in focused functions like scheduling, shift management and workforce planning and optimization.

The right partner will help bring all your staffing functions under one roof. Ask these six questions when interviewing a potential healthcare staffing company:

“Do you offer real-time analytics and predictive workforce modeling?”

You should not only see who is working where today but also forecast utilization weeks ahead, identify overbilling and compare vendor performance against benchmarks.

“Does your VMS meet the unique needs of healthcare?”

Many VMS alternatives are industry-agnostic. The intricacies and unique requirements of the healthcare industry, such as clinical credentialing, make it advisable to utilize a VMS purpose-built for healthcare.

“How long will it take for my team to implement and adapt your systems?”

Implementation timelines vary depending on the platform, integrations, staff experience and the level of customization required. The ideal healthcare staffing partner will offer a platform that is tech-forward, intuitive and integrates seamlessly with your existing systems.

“How will we know if we’re paying appropriately for contingent staffing?”

Good staffing partners have standardized bill and rate caps, often lower than individual staffing agencies. Advanced VMS platforms, supported by expertise and advisory services, will provide ongoing market comparisons and reporting. Some partners offer reverse invoicing of agencies on your behalf, recouping any overcharges. Berkshire Health Systems in Massachusetts is one example of a health system that achieved significant cost saving from this type of strategy.

“Can you help us evaluate vendor performance?”

Vendor performance transparency is central. Your partner should provide key performance indicators on cost, quality and performance — as well as advise on which staffing agencies are delivering the most value.

“Can you help us expand our talent pool without having to hire more agencies?”‍

The right staffing partner will help you utilize your existing resources as efficiently as possible before turning to external solutions. In addition, some can help you establish and manage more internal resource pools such as employed float pools, internal agencies, retirees and other contract-based clinicians.

The right staffing partner should offer a range of solutions, from a hands-on, expert MSP partner (“fully managed”) to a standalone self-managed VMS software (“fully yours”) and customized hybrid models that fall somewhere in between. With the right engagement and the right staffing partner, expect to save significant labor expenses while accessing high quality clinical staffing.

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