How vendor-neutral platforms, like Trio Workforce Solutions, are changing the game and delivering better results over traditional master vendor or vendor-managed models.
There is no sugar coating it, this is a pivotal moment in the healthcare industry. Health systems, hospitals, and physician groups are facing increasing financial pressures, demand for flexible workforce solutions, and evolving workforce dynamics. The spotlight is on healthcare executives to identify the best path forward. There is the traditional vendor-led approach, sometimes referred to as master vendor or vendor-managed, which are driven primarily by MSPs that favor one staffing partner over all others. More recently, a new approach has emerged relying on smart platforms and enabling organizations to work across dozens of staffing partners.
So, which approach best improves patient care, boosts financial outcomes, and optimizes staffing efficiency? This article breaks down the strategies and highlights why a vendor-neutral, tech-enabled workforce solution is the most effective option.
While healthcare faces numerous internal and external challenges, physician and nursing workforce shortages are a key driving force. This is particularly true in nursing, with an annual shortfall of over 190,000 registered nurses.1 Additionally, the sector is facing significant market fluctuations, including a 22% contraction in healthcare staffing in 2023, primarily due to declines in the travel nursing and per diem segments.2
The healthcare industry is experiencing similar shortages on the physician side resulting in uneven access to care. However, experts predict steady, continued growth in the locum tenens segment, driven primarily by the aging population, rising retirement rates among physicians, and an expanding need for healthcare services in rural or underserved areas.3
These shifts reflect a normalization after the pandemic surge but also underscore ongoing issues such as burnout, high turnover rates, and demand for flexibility.
At the same time, healthcare organizations are under increasing pressure to stabilize finances. While operating margins are recovering, largely through reduced reliance on expensive contract labor, the need for scalable and efficient staffing solutions remains.2
For example, rural hospitals often rely on locum tenens physicians to fill gaps in specialty and primary care services. This model provides continuity of care, flexibility to adapt quickly to changing demands, as well as manage financial pressures effectively.
By offering short-term, scalable solutions, organizations can control costs while ensuring high-quality care during critical periods. A vendor-neutral, smart platform can streamline locum tenens, clinical, and non-clinical hiring, deployment, and scheduling, ensuring these new additions to the workforce are efficiently integrated into existing teams.
A smart-platform approach leverages advanced technologies and AI to centralize staffing functions, offering transparency, scalability, and cost control. Platforms can integrate data across systems, facilitating predictive workforce planning based on volume-driven demand. This approach enhances efficiency by reducing manual interventions and aligning staffing levels with patient needs, which is critical for maintaining high-quality care and controlling costs.4
Key benefits include:
• Scalability: Platforms enable healthcare systems to adapt quickly to fluctuating demands, such as surges in patient volumes or specific specialty needs.
• Cost Efficiency: Centralized billing and standardized pay structures streamline financial management.
• Flexibility: Talent preferences for gig-style roles are supported through platforms, enhancing recruitment and retention in competitive segments.1
Relying on a single staffing vendor often limits flexibility and scalability. While a trusted partner may offer specialized expertise, they may lack the breadth to handle varying demands across multiple geographies or specialties. Additionally, such arrangements may inadvertently increase dependency, drive up costs, and create vulnerabilities in times of high demand or workforce shortages.
A vendor-neutral approach, like Trio Workforce Solutions, combines the strengths of a smart platform and a trusted partner, while also adding the resilience of integrating multiple staffing partners and resources. As a result, healthcare organizations gain:
• Broad Talent Access: Collaborating with multiple vendors broadens the candidate pool.
• Operational Efficiency: Centralized management ensures consistency and reduces redundancies.
• Strategic Flexibility: Organizations can pivot between vendors based on performance, ensuring the best value for each staffing need.
Insights from Staffing Industry Analysts highlight the growing adoption of technology in healthcare staffing. For example, the use of online platforms is expanding, now accounting for over 20% of temporary staffing revenues in key segments like travel nursing.2 These tools offer data-driven insights and real-time updates, which are crucial for optimizing operations in a highly dynamic market.4
Meanwhile, advances in workforce analytics enable better forecasting of labor needs, addressing the challenge of matching supply to demand while controlling costs.1 This approach aligns closely with the priorities of health systems seeking to enhance care delivery without overextending their budgets.4
As the healthcare industry evolves, the debate between smart-platforms and single-vendor models will continue. However, the evidence increasingly supports the more dynamic vendor-neutral, tech-driven platform-based strategy. Smart platforms that effectively leverage multiple staffing agencies are clearly the most effective way to manage workforce complexity, reduce costs, and ensure high-quality patient care. By embracing a hybrid model, healthcare executives can future-p
roof their workforce strategies, responding adeptly to both immediate challenges and long-term trends.
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1. "What Lies Ahead for the US Healthcare Staffing Industry?" Staffing Industry Analysts. Published September 12, 2024. https://www.staffingindustry.com/editorial/healthcare-staffing-report/september-12-2024/what-lies-ahead-for-the-us-healthcare-staffing-industry.
2. "US Healthcare Staffing Market Assessment: 2024 Update." Staffing Industry Analysts. Published 2024. https://www.staffingindustry.com/us-healthcare-staffing-market-assessment-2024-update.
3. "Growth Opportunities in Locum Tenens." Staffing Industry Analysts. Published October 30, 2024. https://www.staffingindustry.com/news/global-daily-news/growth-opportunities-in-locum-tenens.
4. "Insights on the Recent Downturn in US Temporary Staffing 2024." Staffing Industry Analysts. Published 2024. https://www.staffingindustry.com/insights-recent-downturn-us-temporary-staffing-2024.
Jay Sage is Executive Vice President at Trio Workforce Solutions, driving innovative workforce strategies for hospitals, health systems, and physician groups. His extensive healthcare experience spans more than 30 years with a dedicated focus on staffing solutions and workforce management.